How Facebook Advertising Works

Over three million businesses advertise on Facebook. Willingly putting money into a machine that yields, in most cases, varying results. Without understanding exactly how Facebook advertising works!

Due to a lack of time and knowledge, business owners can become confused with their social media endeavours. Questions we often hear are “what do Facebook do with your ads when you advertise with them? Or “how much do I need to spend to get a decent return on Facebook advertising?”

Here at This & That Media, we thought that whilst we self-educate ourselves every day as a growing social media agency, it would be handy to help you gain a better understanding of all things social media.

We think that if more people understood how these machines work. They would make more informed decisions that will help them utilise these powerful platforms. Because this is a mammoth of a topic, and we don’t want to fry your brain. Below is the first of two articles explaining how Facebook advertising works and how you can implement it to your business.

Facebook Ad Delivery

Ad Auctions

Ad auctions occur each time there is an opportunity to show an ad to someone. These are used to determine the best ad to show to a person at any given point in time. With Facebook’s huge user base (2.99 billion users to be exact) billions of auctions take place every day.

When you create an ad. You tell Facebook who to show your ads to (target audience). With so many other businesses on the platform and within your own industries, a single user can fall in multiple targets audiences (Male surf boarder and all surfers on the Sunshine Coast for example). This is who you compete against in the ad auctions.

How is the winner determined?

The winner of any Facebook Ad Auction is determined by three components.


The bid placed by advertisers is what the business or advertiser is willing to pay to achieve the desired business outcome.

These come under bid strategies. Which informs Facebook how to bid for you in your ad auctions. We will go into more depth about the certain strategies and their effects in the next article.

Estimated action rates

An estimate of whether a particular person engages with or converts from a particular ad. (Clickbait and engagement bait do not improve performance).

Ad Quality

Measured by feedback from people viewing or hiding the ad and assessments of low quality attributes in the ad (too much text, info withholding, sensationalised language and engagement bait).

How Facebook ranks your ad in Ad Auctions?

All those factors combined together measure ad relevance which culminates into a relevance score. Measured from one to ten (higher score = better result).

Your relevance score determines your cost per click and how frequently Facebook shows your ads. Relevant ads are great because they are subsidised in auctions, so they often cost less and see more results. Meaning an ad more relevant can win an auction against ads with higher bids. People want to see ads that are relevant to them so this is how Facebook provides feedback to advertisers.

Your ad has to be shown 500 times before it is assigned a relevance score. You can find out where to see it here.

Applying this knowledge

Don’t cut corners!

Understanding that ad quality is a factor that contributes to whether your ad performs well seems obvious. Yet there are many businesses who cut corners and penny pinch with content creation.

By no means do we encourage you to spend over the odds with content creation. Though, we recommend serious consideration towards executing it to the best of your ability. The ideas you have don’t have to be extravagant either, escape competition through authenticity.

Careful Design Consideration

Knowing the game-like nature of Facebook advertising should encourage you to plan out your social media goals and ads more diligently. Getting clear on who you’re targeting your ads at and the specific messaging your ads will portray to them. Focussing on being relevant to ensure a subsidised ad in each auction it competes in.

Clarify budget

Knowing that the more you invest in the content creation, the more likely your ads are subsidised should help you allocate your budget accordingly. If you don’t have a clear budget allocation for your advertising, it will be harder to understand your ROAS and cause confusion working with external parties like a videographer or social media manager for example.

Final word and call to action

Knowing this is only half of the equation to understanding how Facebook advertising works. However, having this information should help you have a more holistic approach to your business’s social media endeavours. It should also inform how you develop your creative strategy and goals that will yield great returns with the lowest cost.

If you are looking to get a clearer picture of your social media strategy find out how we can help sign-up to our FREE online 20-minute consultation here.

Life is about perspective and how you look at something… ultimately, you have to zoom out.

Whitney Wolfherd

Caloundra FC x This & That Media – Case Study

The Problem At Hand

Caloundra FC President, Nic Basile, wanted to utilise our Social Media Strategy services for the club’s current 2020 season. Highlighting all aspects of the club including their senior, junior and women’s program.

The target was to boost the club’s brand awareness and following in the footballing community. As well as generate player registrations online and at the club’s in-person registration day.

Our Social Media Strategy

Awareness Phase

Having been exposed to copious amounts of advertising in the football industry. We were excited to blow away the local football community on the Sunshine Coast with our campaign.

Much like that of a new FIFA trailer or player signing unveiling we wanted to produce a 1:00 minute promotional video to generate awareness.

Inspiration for our promotional video, FIFA 04 trailer!

Conversion Phase

For the conversion phase we thought of creating three individual banner images with players from each program (senior, women & junior) with the clubs motto along side. Which we could use Facebook’s detailed targeting. To convert online registrations and in-person attendees to the in-club registration day.

We also created a simple landing page for leads to enter their details and be forwarded onto the online registration portal. This provided a simple way that would make for an easier sign on process. It would also be a good tool to track how effective the ads we created were when comparing to final sign on numbers.


We shot all the pieces of content we needed over a couple hours down at the Meridan Sports Complex. With three players from each respected program at the club.

Awareness Phase Promo Video
Group banner image for conversion phase
Individual Banner – Women’s program

Distribution Strategy


We decided to upload the promotional video organically. To generate awareness utilising the clubs already established social media audience on Facebook and Instagram.

We uploaded a photo gallery from the individual and group banner photos to build anticipation for the upcoming season as well. Encouraging their existing audience to register online via the landing page we created.

Two days prior to the in-person registration day we created a Facebook event to gauge how many people would show on the day. Ensuring it stayed top of mind to capture as many registrations as possible on the day. If people who were exposed to the event couldn’t make it, we detailed where they could register online as well.


To generate awareness we boosted the promotional video through the Sunshine Coast community with a fairly broad target audience.

For the individual banners, our creative director and Caloundra FC president crafted three detailed target audiences suited for the senior, junior and women programs. Ensuring the ads were being shown to the right people.


Online Lead Generation

The seven pieces of content we published in the lead up collectively generated 31 unique leads. Majority from the junior and senior program which was satisfying to see.

The leads that did not convert, we then had captured their data to retarget closer to the season opener down the track.

In-Club Registration Day

The club registered 43 individual at the in-club registration day. Whilst we didn’t have the foresight to record what channel the players had made them want to sign-on, the club attributed the solid numbers to our social media endeavours.

Numbers of new registered players would have been good data to record in future as well to measure the effectiveness of the campaigns further.

Brand Awareness

In the week period where we launched the advertising campaign on Facebook and Instagram the club yielded great awareness results.

  • 347% increase in pages likes and follows,
  • 227% increase in reach
  • 22% increase in engagements
  • 592% increase in video views

A standout result was the performance of our promotional video which registered 9.6K views, with 5.8K being unique accounts. This certainly exceeded our expectations on the awareness front and reinforced the power of high-quality video content.


“It’s been fantastic for Caloundra and it’s something other clubs and codes should be using. I would definitely recommend Kenny and This & That Media!

Nic Basile, Caloundra FC President

Final Word

This was our first social media campaign of 2020. It was great to be able to help enhance our local clubs image on social media. As well as contribute to player registrations and attracting top-talent to their teams for this season.

We were able to refine our skills in content creation as well as our platform management and advertising capabilities.

If you are interested in finding out more about our Social Media Strategy Services, fill in the form here to book in for a consultation.

How To Align Your Business Goals On Social Media!

All businesses have goals they set. Majority of businesses have a host of social media pages they use. What most business struggle to do, is align their business goals on social media.

Here at This & That Media, we thought that whilst we self-educate ourselves every day as a growing social media agency, it would be handy to help you gain a better understanding of all things social media.

Having experienced this with multiple clients through our Social Media Strategy Services. In this article we will provide a valuable insight that anyone looking to enhance their social media can implement.

“All successful people have a goal. No one can get anywhere unless he knows where he wants to go and what he wants to be or do.”

Norman Vincent Peale

Define A Measurable Business Goal

What we often hear when engaged by a potential client is “I would like to increase my following and sales of my products/services”. These are both achievable goals on social media but they lack specificity.

The less specific or clear your businesses goals are on social media, the more complex it is to measure the effectiveness of your efforts. So before we take on any social media project, we ask potential clients to use the S.M.A.R.T goals framework.

The S.M.A.R.T goals framework is designed to help businesses and individuals define clear and measurable goals for their business. Social media marketing is no different and requires added thought when looking to be as effective as possible. Setting expectations for all parties involved.

Our creative director, Kenny (left) and previous client, Dustin Slypen during campaign.

S.M.A.R.T Goals Breakdown


Based on historic data, think of a specific number or percentage increase in a particular area that will satisfy your social media efforts in regards to your overall business goals? For example, +500 followers on Facebook by Q2 as part of generating awareness for your brand as a startup.

This will give you something to aim for which is clear and obvious to all involved. It also gives them an expectation to exceed and prove their worth!


How can the specific target you’ve set be measured? What metric is going to be reviewed to justify a successful campaign? If you can’t measure the goal then it is hard to highlight how effective your social media efforts are.

Once you have figured out what metric is going to be measured you can identify primary and secondary KPIs to define success at any given timeframe.

For example, a jewellery company Radiance wants people to get to know the brand and think of it for special occasions. In this case, the Radiance goal is to increase ad recall. Its goal is to see a 20-point lift in ad recall by mid-February (after Valentine’s Day).

The misalignment in KPIs and business goals leads to improper measurement of the desired business outcome, meaning the KPI wont be effective in reaching its goals.

You may choose one goal on a platform that is easily measurable but hard to measure on other platforms with the same accuracy. That’s why it is handy to have primary and secondary KPIs.

Your primary KPI is linked to your overall business goal. The secondary KPIs serve as an indicator that things are going well. A business should review the secondary KPIs because those metrics are also important to achieve desired outcomes.


Based on your businesses historic data, is the goal you’ve set achievable with the resources at hand? Some businesses can use stretch goals to set high expectations but they have to be within the means of your historical performance.

If a restaurant turned over all of their tables on weekends multiple times, and wanted to increased their in-store traffic on weekdays. Based on their performance on weekends, the target is probably achievable.

Historic data both inside and outside your business can help you set achievable goals on social media or for your business in general. No matter how long your business has been established, your goals should reflect the macroeconomic climate and competitive landscape.

Facebook IQ is a great tool to use to understand your industry insights and how to utilise them in your social media.


Is this goal relevant to where your business is currently? Are you focussing on the right areas? Is this a problem that needs solving? If there are other areas that need attention then focus on them.

For example, if a restaurant has maximised its capacity on weekends, it makes sense to optimise in-store traffic on weekdays. A bad example is a start-up business wanting to focus on conversions prior to any brand awareness efforts.


Is there a deadline you want to achieve this goal? Is it a short-term project or over a longer period of time? Identifying that gives all parties a timeline to focus on and devote the necessary time towards. It enables time to be set aside to review checkpoint progress mapped out along the way as well.


If you craft a goal that combines all of these components together, it is going to ensure the most effective outcome for all parties involved. As well as a clear alignment with your business goals on social media.

We understand that social media can be a complex task for most businesses as there are so many moving parts.

Here at This & That Media we hope this gives you a better understanding of how to utilise these powerful platforms. We want to serve the community and our treasured clients as best we can.

For more general social media information you can schedule in for a FREE 20-minute consultation here.