Facebook has finally devised a new conversion measurement optimization system to measure ROI of Facebook ads for direct response marketers. The system works by keeping a count of “relevant” user actions, like registrations and shopping cart checkouts and it can be used with all Facebook ads and sponsored stories, in combination with any targeting.
This feature will help marketers to also use optimized CPM (OCPM) to deliver ads to people who are most likely to convert on their websites. In the beta testing phase, it has been discovered that ads reduced the cost per conversion by 40 % when conversion measurement is used with optimized CPM, rather than CPC ads with the same amount of money. Fab.com used this feature and lessened its cost per new customer acquisition by 39%, according to Facebook. Even the Democratic Governors Association used the system to decrease its cost per conversion by 85% (relative to any other online campaign run by it).
Facebook is riding on a high with this new offering. The company stated that marketers in e-commerce, retail, travel, financial services, and other direct-response industries can not only use Facebook ads and sponsored stories to drive specific actions on their websites, but they will also be able to understand the ROI of their ad spend and improve that ROI on future campaigns. Conversion measurement with optimized CPM has yielded highly positive results for multiple advertisers who concentrate on driving user actions on their websites.
Facebook’s conversion measurement can be used in Power Editor, the Ads Manager and by API partners