What caused the increase in estimated total reach when a business selected automatic placements for its ad campaign?

The increase in estimated total reach when a business selects automatic placements for its ad campaign is primarily due to the efficient allocation of the ad set budget. Automatic placements allow the advertising platform to optimize the distribution of the budget across various placements based on performance and audience engagement. This means that the algorithm can track where the ads perform best—whether on mobile news feeds, Instagram stories, or other formats—and allocate spending accordingly.

By leveraging automatic placements, the business can enhance visibility and reach a broader audience. The flexibility in budget allocation means that ads can be shown in more locations, which increases overall exposure and potential interaction with potential customers. This optimization is crucial for maximizing the effectiveness of ad spending, as it ensures that funds are directed to the most impactful placements, resulting in a higher estimated total reach for the campaign.

Other aspects, such as bid distribution, bid caps, and cost control, are important elements of ad campaign management, but the primary benefit leading to the increase in reach lies in the strategic budget allocation across various ad placements that automatic placements provide.