Elliott Botterill explains how Meta's algorithm prioritizes user experience over ad spend. Ads that annoy users get penalized with higher costs, while those that drive engagement and conversions get cheaper CPMs. The key is proper conversion tracking so Meta understands what you're actually selling.
Chapters
We're in this algorithmic age and what do algorithms eat for breakfast? Signals. And Meta thinks, what the heck is going on? Meta values its users above our advertising dollars is the truth. Because if your ad is bad and giving someone a negative experience, that will lower their chances of coming back to Meta and that is bad. And therefore Meta will penalise you and charge you more. On the flip side, if your ad is good and it's getting lots of good engagement and when people go to your website, they actually take conversion actions which are sent back to Facebook, that signals, wow, they got what they wanted, that was a good ad, we're going to show that to more people. And Facebook's going to reward you with lower CPMs. People have to see your ad before they can click it, before they can view your landing page, before they can opt in and convert, and so on and so forth. Everything gets better with a lower CPM, and having proper data set up and going through to it, it's just a hack that is going to enable you to leverage that.