The Importance of Understanding Facebook's Algorithms (Part 1)

The budget pacing algorithm controls spending over time. Without it, many campaigns or ad sets might spend their whole budget in just a few hours, which wouldn’t be optimal.

You can gain competitive advantage in your advertising by understanding how Facebook really works. Algorithms do all the magic under the hood, so today, let’s start with Facebook’s budget pacing algorithm. When combined with the Vickrey–Clarke–Groves mechanism that Facebook uses in the auction, the best value is generated for advertisers.

The budget pacing algorithm controls spending over time. Without it, many campaigns or ad sets might spend their whole budget in just a few hours, which wouldn’t be optimal. In general, the reason it wouldn’t be optimal is that the campaign might miss out on cheaper impressions, clicks or actions in the auction that are available later in the day.

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