How cannibalization occurs
Posted: Mon Apr 21, 2025 5:11 am
Let's start with how your ads can compete against each other in an auction, thus leading to ad cannibalization. If you've ever studied Facebook's auction mechanisms in detail, you already know how Facebook selects the winning ad. An advertiser's highest bid doesn't always win; the ad must also be relevant to the user and also have a promising engagement rate. It's therefore an interplay of three fundamental factors: the bid , the relevance score , and the estimated action rate .
Therefore, a user should be served an interesting ad, and six advertisers participate in the auction because the user matches the targeting of all six ad sets. Among the six potentially served ads are three of your ads, all of which you want to display at the same time. How does that work?
Cannibalization, or bidding against yourself, occurs when your target audiences overlap. india mobile number data Target audience overlap isn't necessarily a bad thing. However, it does limit the delivery of your ads.
Example of target group overlap
Let me illustrate this with an example:
Let's say you're a superfood and healthy fitness retailer and want to promote your latest products on your website. You've set up a Facebook campaign with the goal of Reach and used the following audiences for your four ad sets:
Target group A: Website Custom Audience of visitors from the last few months
→ Existing customers should also be informed about the new products in the range in order to ensure a positive launch of the products.
Target group B: Interest targeting for healthy food and healthy nutrition
→ You also want to acquire new customers who might be interested in your products.
Target group C: Core audience of men aged 25 to 55
→ This group of people often achieves a good ROI and is therefore among your best customers.
Target group D: Lookalike audience of buyers
→ Of course, you also use a lookalike audience to reach new users and increase your reach.
These target group breakdowns are common and frequently used by advertisers. It's natural that some users who fit the characteristics of Target Group B are also included in Target Group D. A 30-year-old man may already be your customer and be interested in healthy food. Facebook will therefore classify him as part of Target Groups A, B, and C.
Audience overlaps almost always occur, and no advertiser can prevent them 100 percent. If multiple ads compete against each other, Facebook will deliver the ad that performs best or has the best prospects for good performance.
Therefore, a user should be served an interesting ad, and six advertisers participate in the auction because the user matches the targeting of all six ad sets. Among the six potentially served ads are three of your ads, all of which you want to display at the same time. How does that work?
Cannibalization, or bidding against yourself, occurs when your target audiences overlap. india mobile number data Target audience overlap isn't necessarily a bad thing. However, it does limit the delivery of your ads.
Example of target group overlap
Let me illustrate this with an example:
Let's say you're a superfood and healthy fitness retailer and want to promote your latest products on your website. You've set up a Facebook campaign with the goal of Reach and used the following audiences for your four ad sets:
Target group A: Website Custom Audience of visitors from the last few months
→ Existing customers should also be informed about the new products in the range in order to ensure a positive launch of the products.
Target group B: Interest targeting for healthy food and healthy nutrition
→ You also want to acquire new customers who might be interested in your products.
Target group C: Core audience of men aged 25 to 55
→ This group of people often achieves a good ROI and is therefore among your best customers.
Target group D: Lookalike audience of buyers
→ Of course, you also use a lookalike audience to reach new users and increase your reach.
These target group breakdowns are common and frequently used by advertisers. It's natural that some users who fit the characteristics of Target Group B are also included in Target Group D. A 30-year-old man may already be your customer and be interested in healthy food. Facebook will therefore classify him as part of Target Groups A, B, and C.
Audience overlaps almost always occur, and no advertiser can prevent them 100 percent. If multiple ads compete against each other, Facebook will deliver the ad that performs best or has the best prospects for good performance.