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by alexbeloi 1969 days ago
Ads optimizes for profit, all other content is broadly optimized for meaningful social interaction and against problematic content.

https://www.facebook.com/business/news/news-feed-fyi-bringin...

https://about.fb.com/news/2019/04/remove-reduce-inform-new-s...

1 comments

Ads 100% does not optimise for profit.

Source: I had a bunch of long conversations with FB Ads engineers about what they optimise for. I believe that it's a weighted sum over conversions, which seems like a better metric for an ads system (FB could increase profit in the short term by implementing price floors, but this wouldn't lead to more long term revenue, because advertisers would stop using the platform).

I was oversimplifying, but I stand by my words.

It does optimize for profit, just with extra steps. For most FB ads products (that you see in feed), advertisers pay based on conversions (views, clicks, likes, joins, purchases, etc.). So revenue is directly tied to conversions. Then there are extra steps weighing in revenue != profit, advertiser retention, repetitiveness, long term user value, etc.