How Does Advertising on Facebook Work? Improve your Facebook ads by learning how Facebook advertising and Facebook ads work in 2022

How does advertising on Facebook work? That is the question I will answer in this post, so you can have a better understanding of Facebook ads.

How does Facebook advertising work?

The answer is simple: Facebook ads are a gamble.

For example, if you are a dentist and you place your ads on Facebook targeting women between 25 and 28 years old, and other dentist place their own ads on Facebook with the same target, Facebook is going to show those ads to the best audiences possible.

But you told me that promoting on Facebook is a gamble!

Yes, but if Facebook shows ads that suits a certain audience best, the target will click on those ads, and that is what Facebook wants.

What happens when Facebook has two great ads to show to the same target audience? In that case, Facebook will show the ad of whoever is willing to pay more for the click.

If you are thinking about how do Facebook ads work you need to understand that Facebook is a business and they want money.

I understand that you want leads and transactions that is why you are thinking about Facebook Ads to show your ads, but you will need a budget to start advertising on Facebook ads; it is not cheap to promote ads in this social media platform.

I am going to show you some tips and tricks to get the most out of your budget in Facebook ads.

But first, let’s answer this question:

Do Facebook Ads Work?

Yes. You can get leads or deals using Facebook Ads.

At the time of writing this post about Facebook Ads, I labor for a university doing digital strategies. Some days I have to run ad campaigns on Facebook to get leads for different academic programs.

And yes, we get leads with a regular budget with Facebook Ads because I test with different types of Ads.

In February 2022 Facebook and Google still had the most advanced advertising platforms. I don’t know the future, but right now, if you want to get leads and trades, run campaigns on Facebook or Google.

How does promoting on Facebook perform? By giving you an excellent ad platform.

6 Types of Facebook Ads

There are six types of Facebook Ads that you can choose from:


These ads have the following characteristics:

File type: JPG or PNG

Resolution: 1080 x 1080 pixels

File size: 30MD

Facebook image ads allow users to create visuals with static images to drive action.


These ads have the following characteristics:

File type: MP4, MOV, or GIF

Resolution: 1080 x 1080 pixels

File size: 4GB

Video duration: 1 second to 241 minutes

Facebook video ads give businesses a chance to showcase their brand in sound and motion. These can be seen in the stream, feed, or stories. You also have the option of creating a slideshow.


These ads have the following characteristics:

File type: JPG or PNG

Video file type: MP4, MOV, or GIF

Resolution: 1080 x 1080 pixels

Number of cards: 2–10

Image file size: 30MB

Video file size: 4GB

Facebook carousel ads allow you to display up to ten images or a video in a single ad. Each image receives its own link.

Instant Experience

These ads have the following characteristics:

Image type: JPG or PNG

Video file type: MP4 or MOV

Size: 1080 pixels x 1920 pixels

Images supported: Up to 20 images

Instant Experience Facebook ads pair with collection ads. Users can watch videos, swipe through carousels, and shop for products in your catalog.


These ads have the following characteristics:

Image type: JPG or PNG

Vid file type: MP4, MOV, or GIF

Resolution: 1080 x 1080 pixels

Image file size: 30MB

Vid file size: 4GB

Facebook collection ads are paired with Instant Experience ads. The collection ad shows a cover photo or vid and four product photos. When a user clicks on a photo, a landing page pops up to drive the Instant Experience feature.

Now that we know the type of Facebook ads you can use, you can ask: What is the best option for my company, product or service?

How does promotion on Facebook perform? By giving you all the creative options your organization needs.

Choosing the best option for your company

In my job the most common question I hear is:

“Raul, I need to run an ad campaign for a new academic program, how much money do we need?”

Ok, in this case they want to run a Facebook Ad campaign because they think they need to run a Facebook advertisers campaign, but… they don’t have a goal in mind.

You, as a business owner, have to say:

I want to advertise on Facebook because I want transactions, leads, or for my brand to be known by more people.

You can achieve all of this with an ad campaign.

Before starting your campaign, you need to be honest about what you are looking for or what your organization needs at that moment.

Also, you have to remember that an ad campaign is a boost for your enterprise during a specific time frame.

How does announcing on Facebook function? By telling you that annaouncing on Facebook is the solution you need.

How to Create an Ad on Facebook using Facebook Ads Manager With Step-by-step Instructions for this Facebook tool

Let’s make a campaign together

Step 1: Choose an Ads Campaign Objective in this Facebook tool

Ok. Now you know that you need to have goals for an ad campaign.

Here are the campaign objectives that Facebook allows:

raul the technology savvy how does advertising on facebook work facebook campaign objective

Ok, let’s look at them one by one.


This objective is mostly to get your brand known by more people, but there is a trick:

Brand Awareness

Here your brand will reach the most people, but, to find out if you get the results you want, Facebook recommends making a pool to see if your target audience has seen your brand on Facebook.


This is exactly the same as brand awareness; the only metric that matters is the number of people that you can reach. Don’t expect leads, trades or engagement. Facebook will show your ad everywhere.


This is an objective that gets people to think about your company and seek more information.

The idea behind this objective is that people take action after seeing your ad. For that reason, Facebook will show your ad to people who already know your brand and are willing to take some action.


If you have a blog or website and you want to increase traffic, this is a good option to consider. Facebook will show your ad to people who are more likely to click on your ad and go to your website or blog.


This is a tricky one. You may expect likes, comments or shares, but, for example, if your ad is a photo, a click on the photo counts as engagement for Facebook. A click on Read More counts as engagement for Facebook. Take that into consideration if you want to pick this objective.

App Installs

This is a good option if you want people to install your app.

Video views

This is also a tricky one. Facebook will show your vid to people who like to watch vid, but if your vid is not good then people won’t watch the whole vid.

I am telling you this because some people want their whole vid to be watched, but that is not up to Facebook.

Facebook considers a vid to be watched after three seconds. That is it.

Lead generation

If you don’t have a landing page to get your leads, this is a good option. Facebook will keep your leads and you can later export them in an Excel spreadsheet or a CSV file.


If you want your inbox full of messages this is a good option, but it isn’t cheaper.


This is an objective that encourages people interested in your business to buy or use your product or service.

To track these conversions, you will need to install the Facebook Pixel in your webpage or blog.


Encourage people to take specific action on your corporation’s site, such as having them add items to a cart, download your app, register for your site, call your organization, or make a purchase.

Catalog sales

Show products from your e-commerce store’s catalog to generate transactions.

Store traffic  

Promote your brick-and-mortar enterprise locations to people that are nearby.

Now that you know all the options you have within Facebook Advertising, the question is:

What is the best option for your corporation?

From my experience in digital promotion, I can tell you this:

Your brand or company is new

If your corporation or brand is new then you will need to do at least one reach campaign.

This is because nobody knows your enterprise or brand, so, if you want to sell something, your future audiences need to find out about your corporation.

Also, I recommend doing the campaign with a video. This is because, with a video, you can showcase a unique feature, product, or service, and you can tell a story better.

Keep the videos short; remember that people very rarely watch the whole video.

For an ecommerce business

If you have an e-commerce business that works perfectly and is love by people, you can do catalog sales publicity.

To get the best out of the catalog trades promotion, you should use carousels. This is because, with a carousel, you can choose a different product on each image pair, and give each product image its own landing page link.

Also, you can use video to sell your product.

For websites or blogs

If you have a website or blog, you should do traffic promotion. This is important because this can help you to get some traffic to your website or blog, which can help with your SEO.

Here you can use an image. Remember, try to avoid text. Less is more, and always use high-resolution images.

After picking your objective, it is time to move on to the next step.

How does advertising on Facebook perform? Facebook gives all the business options you need to get your brand known and to get the leads and sales you need.

Step 2: Name Your Ads Campaign in this Facebook tool

It is important to name your campaign in such a way that you remember what your campaign is about, and the Ad Set in such a way that you can remember your target.

raul the technology savvy how does advertising on facebook work campaign name

Step 3: Complete Campaign Details in this Facebook tool

Here you have the opportunity to use the campaign budget optimization.

That option will distribute your budget across ad sets to get more results, depending on your delivery choices and bid strategy. You can control spending on each ad set.

I like using that option because, if I only have $500 for a campaign, and I don’t know how to do distribution in the Ad Sets, Facebook will do it for me.

That is the beauty of this option.

Also, this is very important: Always check the option for Ad Scheduling.

The reason is because, later, after a few days, you can see the moment of the day that your ads show. So, you see that from 1 a.m. to 5 a.m. nobody sees your ad, and so you will have the option to indicate that in that range of hours you ad won’t show up.

raul the technology savvy how does advertising on facebook work campaign budget optimization

Step 4: Choose the Budget, Schedule, Audience, and Delivery in this Facebook tool

In this example the objective is to get leads. First, we need to choose the lead method.

raul the technology savvy how does advertising on facebook work ad set name

Then, you can toggle dynamic creative on if you want Facebook to automatically generate variations, depending on the audience most likely to engage.

raul the thecnology savvy how doeas advertising on facebook work dynamic creative

Dynamic creative is helpful because you can upload up to ten images, titles, and copies, and Facebook will make combinations until they find the best for you and your audience.

The downside is that you don’t have control over the combinations.

Personally, I have used dynamic creative with good results, but sometimes I prefer to take control over my ads.

Next, you have to set up the schedule. Remember that the budget was set up previously.

And you also have to run ads on a schedule, like I told you before. That will help you to optimize your budget.

raul the technology savvy how does advertising on facebook work budget and schedule

Next, it is time to create an audience.

raul the technology savvy how does advertising on facebook work audience creation

How does publicity on Facebook function? By knowing your audience, for that reason you have to read: Customer Empathy Map. How to answer the 7 questions.

Now you have to choose where you want your ads to show up.

raul the technology savvy how does advertising on facebook work ad placement

And finally, this is an important step.

raul the technology savvy how does advertising on facebook work optimization and delivery

This reminds me of something very important.

I have told you that Facebook publicity is a gamble. That is true.

But how does Facebook charge you?

Facebook charges you, but just shows your ad. That is a fact.

Let’s say that you have a lead campaign and after 24 hours you have no leads, but you see that the campaign has already cost you $1.

That is because some people have seen your ad.

Remember: Facebook is a business!

But in the section, when you get charged, you have another option, based on your objective. For example, you can be charged for link clicks, or cost per link click (CPC), but that isn’t the case here.

And, finally, it is time to upload your creation.

raul the technology savvy how does advertising on facebook work ad creative

How much do Facebook ads cost? Is my Marketing Social Media budget enough?

There is not an exact cost. The cost of a campaign depends on the niche, the audience and many other factors.

The Facebook Ads manager only gives you an estimate of the total cost of the campaign and that depends on the length of the campaign and the people you want to target. 

The Facebook Ads manager is a powerful tool but it needs to have all the data to give you an estimate of the cost of the campaign, that is why you need to know very well the people you want to target. 

Ant the Facebook Ads manager is an easy tool to learn.

The reality is that if you would like to do a marketing campaign you need a budget.

Does my business need Social Media Advertising on Facebook?

Yes it does. The organic reach on Facebook is low. The only way to show your products to an audience is by doing a Facebook advertising campaign.

You can say that you don’t know this social media thing and how to do a Facebook ads performance, but it is practice and you can start by reading a Facebook ads guide.

Trust me, to learn how the ads manager works and become one of the advertisers on this platform is easy. There are several videos on YouTube about the ads manager.

Doing Marketing campaigns on social platforms is always a great idea.

Marketing on social platforms is what people do right now to promote their services and because they want to have a relevant brand.

What would you do if you are a professional with no clients? Would you do an action to promote your services?

Of course you do. I bet you will be reading a marketing guide to know where to start.

How does advertising on Facebook work? Conclusions

How does promoting on Facebook function? It is still a tricky question, because everyday Facebook updates its platform.

I think their goal is to be the number one promoting platform in the world.

So, how does promoting on Facebook perform? By calling you. If your budget is more than $500 per month, a Facebook advisor calls you to promote the platform and to tell you to spend more.

If your budget is big, like more than $50 000, a Facebook advisor calls you to give you new updates on the platform before anybody else, with the goal of getting you to expand your budget for the platform.

How does promoting on Facebook perform? If your budget is, for example, $500 a month, Facebook will consume all of your budget. It is not like Google Ads, where if nobody clicks on your ad your budget doesn’t get consumed.

And finally, how does promoting on Facebook work? By giving you the best option to reach your target audience. That is the best of Facebook Ads. If your business model is business to consumer (B2C), this is THE platform, but if your business model is business to business (B2B), then LinkedIn is your best option.

My advice, in this post about how advertising on Facebook works, is that you need to try different platforms.

This is because you can say that Facebook is the solution, but not get any leads. Then, you might make a Google Ads campaign and get leads, because maybe your target audience is on Google, searching for your products.

Try different platforms and see which is best for your business.

Now you know How does advertising on Facebook work.