In an effort to help marketers better track sales, Facebook launched a new conversion measurement Tuesday, allowing advertisers to measure the return on investment of their Facebook ads by tracking user actions such as registrations and shopping cart checkouts motivated by people seeing the ads. It allows marketers to track when someone sees an ad on one platform and switches to another to make the purchase.
And I have to say about time too 😉
Facebook announced the news in a Studio blog post, pointing out that marketers can additionally use optimized cost per thousand impressions (OCPM) to deliver ads to users most likely to make purchases on companies’ websites. According to Facebook, when the two metrics are used, ads reduced the cost per conversion by 40 percent, in comparison to cost-per-click ads on the same budget.
Facebook described its new conversion metric on the Studio blog:
This means that marketers that are interested in using Facebook ads and sponsored stories to drive specific actions on their websites can now use conversion measurement both to understand the ROI of their ad spend and to improve that ROI on future campaigns. This should be extremely valuable for marketers in ecommerce, retail, travel, financial services, and other direct-response industries that value actions taken on their websites.
This conversion measurement and optimization can be used on all Facebook ads and sponsored stories, as well as in tandem with targeting capabilities. Facebook claims that it is the only solution that can show when a person views an ad on one device (such as their phone) but converts on another (their desktop computer or tablet).
Facebook noted that online retailer Fab.com cut its cost per customer acquisition by 39 percent when it used Facebook’s conversion measurement and optimization to serve ads to prime users. Additionally, the Democratic Governors Association used this conversion measurement alongside OCPM to deliver ads to those most likely to sign up for its mailing list. According to Mark Giangreco, the DGA’s digital director, the organization saw cost per conversion rates 85 percent lower than any other Facebook campaign they had run.
- Click on the conversion tracking tab in power editor in Chrome (www.facebook.com/ads/manage/powereditor/) or on the conversion tracking link on the left hand nav in ads manager (www.facebook.com/ads/manage).
- Create your conversion tracking pixel(s) and implement it on your conversion page(s).
- Once the pixel has been placed on your website, create ads and select “track conversions on my website for this ad.”
- Set a budget and choose optimized CPM to deliver the ad to people most likely to convert.