Facebook Conversion Tracking and OCPM for Direct Response Advertising

Last month, Facebook launched 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 ad on Facebook.

What is Facebook Conversion Tracking?

Conversion tracking helps businesses measure the return on investment of their Facebook Ads by reporting on the actions people take after viewing those ads. Advertisers can create pixels that track conversions, add them to the pages of their website where the conversions will happen, and then track these conversions back to ads they are running on Facebook. Conversion tracking also helps businesses leverage optimized cost per impressions (oCPM) to show ads to people who are more likely to convert off Facebook.

What are Facebook Conversions?

A conversion is an action that a person takes on a website such as checking out, registering, leads, Key page views, adding an item to the shopping cart, or viewing a particular page. Virtually any page on a website can represent a conversion. Facebook tracks conversions that happen within 1 day, 7 days, and 28 days after a person clicks on an ad, and 1 day, 7 days, and 28 days after viewing an ad.

Benefits of Facebook Conversion Tracking and OCPM:

Optimized CPM (OCPM) and Conversion Tracking tools are not only used to measure the ROI from Facebook PPC advertising, but are also used to deliver ads to people who are most likely to convert on their websites. Facebook’s 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. That is extremely valuable for marketers in e-commerce, retail, travel, financial services, and other direct-response industries that value actions taken on their websites.

How it Works?

Facebook ad manager will monitor which ads are generating more conversions and which users are more likely to convert from specific ad copies (e.g. Ad X drove Y sales). Then you can increase the CPC (or CPM), optimize the conversions page, adjust the ad copy, or even change the marketing strategy.