Haven’t heard of Facebook Pixel? Unsurprising. It’s not exactly “advertised”. But if you’re running advertisements on Facebook (and if you’re also reading this blog it’s more than likely that you are), using Facebook Pixel is a no-brainer.
To answer the what, Facebook Pixel is a piece of code that is embedded into your website and tracks various statistics through using cookies.
Why embed the code?
The Facebook Pixel code allows you to gain statistics about your website and paid advertisements that you otherwise would not have access to.
By embedding the code within your website, the “pixel” knows what to track (with a little help from you or your coders!) and follows this data for you.
What functions does the Facebook pixel track?
The pixel assists three functions: tracking conversions, optimising your ads, and creating audiences to re-target with different ads.
So, what makes these three functions so interesting?
It’s about finding the most cost-effective way to advertise, or more crudely put – To get the most “bang for your buck”.
#1 Track conversions:
‘Conversion tracking can help your business measure the return on investment of Facebook Ads by reporting on the actions people take after your ads are viewed.’
A “conversion” is a completed action that you would like to see on your website. This includes subscribing to an emailing list, completing an online purchase, or filling out a contact form. These completed actions load to a webpage, such as a “thank you” screen. Each completed conversion (i.e. signed up for the email, purchased an item) has a different thank you screen. So how would this work in practice?
Let’s say you sell widgets for a living, and you charge $25 for each widget.
You spend $200 on advertising each month on Facebook, and this generates 100 clicks to the website (so your cost per click is $2). At the same time you’re also getting 60 clicks per month from Google searches. That month you made 5 widget sales.
Problem: How do you know which of those clicks are converting to sales?
This is where the Facebook pixel comes in. By tracking how many people have completed a conversion compared to the amount of people who have clicked the links, Pixel can track the “cost per conversion” per advert. From the above scenario, the direct cost of the conversion would be $50 (with a net loss of -$25 per sale). With Pixel tracking, it shows that you’re spending more money for people to buy your services than you are receiving in return!
#2 Optimise ads for conversions:
The conversion information that the Pixel captures demographic details of those who have completed that action when clicking through from Facebook. This allows us as advertisers to use the bidding option of ‘Optimise for Website Conversions’. Facebook will then show our adverts to those people who are most likely to convert.
With the demographics data, Facebook can advertise on their website to those who are more likely to be interested in your product than the general public. For instance, a man between the age of 25 and 30 who is in a long-term relationship (ah, so that’s why they want that information!) is much more likely to buy an engagement ring than a 50-year-old married man with three children.
#3 Create retargeting ads:
This is a form of marketing in which those who have already interacted with your website, but perhaps haven’t converted, are targeted. This is perfect for businesses who have a product or service that traditionally has a higher path to purchase, or where a purchase decision isn’t immediate. Think new home builders, cosmetic dentistry, financial planners, airlines and the like.
So how does it work? In simple terms: A potential customer visits your website, they leave without purchasing a widget. Your widget ad is served to them the next time they’re on Facebook, hopefully drawing them back to your website so they can buy a widget (or two!).
If you’ve looked at flights or accommodation recently, you’ll have probably then noticed their ads ‘following’ you around Facebook. This is retargeting. An example from Air BnB:
Retargeting has been proven to increase the likelihood of purchasing. These re-targeted customers – or “low hanging fruit” – have a higher click through rate and on average spend more.
WHEW! Got that? Now…
How can I create my Facebook Pixel?
To create your Facebook pixel:
- Enter your Facebook Advertising account
- Click Adverts Manager in the top left
- Select ‘All Tools’
- Under the Assets column, select ‘Pixels’
- Follow the prompts, accept the terms and conditions, and voila!
How do I set up the Pixel?
In an ideal world, this is where you should rely on your trusty web designer to help. The pixel needs to be placed in the code of your website, and certain events need to be tied to certain lines of code which requires a certain level of expertise. For example, a conversion may be someone clicking to call on your website, therefore the pixel tracking needs to be tied to this button or line of code. Best leave this one to the experts!
One of the biggest bonuses of Pixel is that it derives statistics that are a marketer’s dream: quantifiable data about the effectiveness of advertising. This helps with the age old comment: “50% of my marketing is working, I just don’t know which 50%!”
For assistance with creating a pixel for your ad account, you can book some social media coaching with us, book into our Social Media Advertising training course, or simply engage us to run Facebook advertising for you.
Either way – the team at Social Media AOK like to start with coffee.
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