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
