What Facebook's New Conversion Tracking Means for Brands

Serena Goldberg
Serena Goldberg Manager, Analytics, Likeable

Posted on January 29th 2013

What Facebook's New Conversion Tracking Means for Brands
Facebook made an important announcement in early 2013 about the launch of a new conversion measurement and optimization system on its platform. This new conversion measurement tracking tool is essentially a way to measure and optimize Facebook ads by showing the website conversions they produce. This is a great tool for direct marketers looking to demonstrate the ROI of their ad campaign. Here are some highlights of this new feature.
return on investment ROI Facebook conversion measurement optimization 
Conversion measurement tracks how Facebook ads drive checkouts, registrations, leads, key page views, adds to cart or other website conversions for brands. Conversions can be seen across all types of Facebook ads, whether or not the ads are driving to a Facebook page or external website. By using optimized CPM (OCPM) along with conversation tracking, ads will be delivered to people who are most likely to convert on a brand’s website.
 
How it works:
  • A piece of code that the tool generates will need to be added to the website where the conversions take place.
  • Whenever a person loads a page with the code on it in his or her browser, the code tells Facebook that the conversion event has occurred.
  • Facebook then matches that conversion event against the set of people who have viewed and/or clicked on an ad.
  • The ad manager will report on the designated action for the ads allowing us to see website performance of ads post-click (e.g. Ad X drove Y sales).
What it means for you:
 
This new feature allows brands to quickly see the results and impact in one tool making it easy to optimize ads based on who is most likely to convert using OCPM. Brands will be able to see how fans converted on websites after liking a page as a result of a Facebook ad. Using OCPM can help retailers and other ecommerce brands reduce their cost per new customer acquisition. Additionally,Facebook conversion measurement is the only solution that can report when a user views an ad on one device (e.g. mobile phone) but converts on another (desktop computer).
 
You can find more info on conversion tracking here.
 
What do you think about Facebook’s new conversion tracking tool? How will it impact your brand?
Serena Goldberg

Serena Goldberg

Manager, Analytics, Likeable

Serena is Manager of Analytics at Likeable Media. Prior to joining the team, Serena was a Senior Web Analyst at One to One Global in Boston, MA working with Liberty Mutual Insurance on measurement and analytics for their social and paid search campaigns. Prior to that, she worked for several years on Forrester Research’s Market Insights team helping healthcare and telecom companies, including Kaiser Permanente, Sanofi Aventis, Blue Cross Blue Shield, AT&T, and Motorola, with their business strategies. Serena received her B.A. in Sociology from Boston University.

See Full Profile >

Comments

Nice post, Serena - really useful stuff. 

Did you see my post from earlier in the day on how the conversion measurement and optimization system could impact the way fans are engaged with via Facebook? Would love to know what you think:

http://socialmediatoday.com/tobymargetts/1196681/end-engaging-facebook-c...


Cheers,

Toby

Much appreciated for the information and share. Continue to keep up the great post!!


Thanks..

Serena,

You mentioned in the article the folowing: "A piece of code that the tool generates will need to be added to the website where the conversions take place."

What code and where do I get it?

Thanks,

 

Robert

Great post thank's for bringing this to light.  Ads actively trying to drive conversions sounds like a no brainer to marketers, if it works.  I know I'll be experimenting with it when I launch my new eCommerce project.

I've been using conversion tracking with one of my clients (a health insurer) for a month now, with pretty good results. This feature has completely changed the way I look at reporting our social marketing efforts. 

I can not only deliver great reporting to my client, and we can now correlate sales with social media engagement/exposure, but most importantly I am able to optimise content and advertising spend based on the results of conversion tracking. 

We are now in the process of completely re focusing the content and advertising strategy on Facebook- we are now targeting a very defined demographic- one we know is of high value to our client and one we know is more likely to purchase the client's product, so we are really optimising the way we reach and speak to our demographic in more 'micro' ways v what we have been doing thanks to this tool.