Conversion tracking helps us measure the return on investment of Facebook ads by providing the information about user actions that happen after users click on one of our ads.
In the beginning, the only information Facebook provided was on the actions users would perform on Facebook after clicking on an ad. This enabled us to see how many of them liked or commented a status, watched a video, installed an application or attended an event.
Facebook later allowed us to follow the activities of users on the entire web after they clicked on an ad, and we can do it by using Facebook’s conversion pixel. Conversion pixel is a piece of code that is placed on a Thank you page, i.e., a page that appears after a conversion on a website. When a Thank you page is loaded, it triggers the conversion pixel and we can see exactly which ad led to the conversion. What is considered a conversion can vary from campaign to campaign, from website to website – it can be a sign up form, newsletter subscription, webshop sale etc.
Why is conversion tracking important?
When deciding on what a good ad looks and performs like, it´s easy to get fooled by one-dimensional statistics like the number of clicks. Many would say that an ad with the highest number of clicks is the most successful one – but that is an absolute metric, and it doesn’t mean much on its own.
What we learned from this metrics is that we should leave Ad 4 and eventually Ad 1. But, within these ads, we had implemented a conversion pixel and set that one conversion has a worth of 50 €. The results show that Ad 3 has the cheapest CPA, and the price of its conversion is only 0,86 €. If, in this case, we decided to stick with Ad 4, our result would be three times weaker, and if we decided to continue using Ad 1, it would be ten times weaker. If we hadn’t implemented the conversion pixel, we would be guided with incorrect data which would lead to a lot of wasted money.
It is of the most importance to know what the ultimate goal of the web campaign is and to always measure it. Goals like form filling, webshop purchases and newsletter sign-ups can be tracked through Analytics, but the advantage of using a conversion pixel is its simple implementation. It only takes a pixel and a Thank you page.Another advantage of conversion pixel is that it allows ad bidding according to oCPM model. oCPM (optimised CPM) is a CPM ad bidding model, that, by using Facebook algorithms, directs ads to users which are more likely to convert.
Whichever tool you decide to use, be smart about it! Examine all of the available features and possibilities, and choose one that suit your ad tracking needs and help you manage your campaigns easier.