How does Facebook’s suggestion algorithm work?

We promoted this post (evidenced by the “sponsored” label at the bottom) and see suggested pages beneath it.
Some people say these suggestions are paid– they’re not.

But what’s curious is how Facebook decides what to show.
This would be the math behind lookalike audiences. E-commerce players like Amazon use this technique to recommend related products.
It’s called collaborative filtering– what any first-year statistics student can run.  People who bought X also bought Y.  Or people who watched this show also liked that show.
Are they looking at my activity to see what other pages I personally might like?
We’ve been meeting with folks like GoDaddy and Quicken Loans, who sponsor NASCAR teams. So the Miss Sprint Cup suggestion makes sense.
And I was in Miami a week ago– so the “Visit Miami” page seems quite relevant.
Content Factory isn’t based in Miami or happens to have a stronger concentration of fans/traffic in Miami. So I’m leaning towards #2.
We have a mix of big brand and entrepreneurial folks on our page, so the SpringWise suggestion makes sense.
What do you think?

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