Facebook has just announced the global launch of a new conversion measurement and optimization system for direct response marketers. Facebook conversion measurement allows advertisers to measure the ROI of their Facebook ads by counting relevant user actions, such as registrations and shopping cart checkouts, that are driven by people seeing an ads on Facebook.
Marketers can now also use optimized CPM (OCPM) to deliver ads to people who are most likely to convert on their websites. Beta tests have shown that when conversion measurement is used with optimized CPM, ads reduced the cost per conversion by 40 percent when compared to CPC ads using the same budget.
This means that marketers who 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 e-commerce, retail, travel, financial services, and other direct-response industries that value actions taken on their websites. Early testing of conversion measurement with optimized CPM has generated strong results for multiple advertisers who are focused on driving user actions on their websites:
- Online retailer Fab.com was able to reduce its cost per new customer acquisition by 39 percent when it used conversion measurement and optimization to serve ads to consumers deemed most likely to convert.
- The Democratic Governors Association used conversion measurement with optimized CPM to deliver ads to users who were most likely to sign up for its mailing list. According to Mark Giangreco, Digital Director of the DGA, the Association noticed a dramatic decrease in its cost per conversion – 85% lower than any other campaign the DGA had run online.
- 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
Conversion measurement and optimization can be used on all Facebook ads and sponsored stories, and in combination with any targeting capabilities. Facebook conversion measurement is also 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), which is useful for cross-platform ad campaigns.