Facebook has launched a conversion measurement tool, which measures the return on investment of Facebook ads. It allows the recording of consumer actions driven by Facebook ads, like registrations, to determine Facebook ad ROI.
With this new tool, businesses can now monitor the performance of their ads on the social network, as well as see how many registrations or transactions are being driven from the website. As stated on their official blog post:
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 and ad on one device (e.g. mobile phone) but converts on another (desktop computer), which is useful for cross-platform ad campaigns.
This feature has been available to larger advertisers for more than a year now, and it is also offered by third-party providers. Now, Facebook is offering the conversion measurement tool to all users through self-service, although optimized CPM is optional.
Conversion Measurement Tool and Optimized CPM
Facebook’s new conversion measurement also features combined optimized cost-per-thousand impressions (CPM). This would help page owners to target ads to consumers with high conversion rates. That way, businesses can market products and services to users who are most likely to make a purchase.
Beta tests have shown that when the conversion measurement tool [was] used with optimized ads, [it] reduced the cost-per-conversion by 40 percent when compared to cost-per-click ads using the same budget.
According to the social media giant, this would let businesses better understand the ROI ad spend while boosting future ROI results. As explained by Facebook-centric website Inside Facebook, conversion measurement works by generation code to add pages where marketers want to measure conversion rates.
Furthermore, it allows marketers to create and manage code for tracking conversion on off-Facebook sites that are linked to the social network ads. The tool’s optimized CPM, on the other hand, is characterized by the online publication as “key for e-commerce and other direct response advertisers who use Facebook ads to lead users to third-party sites.”
Facebook’s conversion management tool is available in power editor, ads manager, and API partners on Facebook. Conversion measurement and optimization can be used on all Facebook ads, sponsored stories and in combination with any targeting capabilities. The social networking giant even added that their latest tool is the only solution that can report whenever a user views an ad on one device but converts on another.