The Facebook pixel is a piece of code that you put on your website that allows you to measure the effectiveness of your advertising by understanding the actions people take on your website.
Simply put, if you're sending traffic to your website the Facebook pixel is the difference between success and failure.
The Facebook pixel gives you powerful audience building and tracking options, plus a few more perks including:
- Track the number of conversions like newsletter signups or purchases, the cost per conversion (CPA) and the conversion rate (CVR).
- Revenue reporting: most e-commerce carts can pass the actual order value back to Facebook. This allows you to measure return on ad spend (ROAS).
- Analyze your sales funnel. For example, at AdEspresso we might analyze Leads > Trials > Purchases as our customer journey. In e-commerce you would look at the number of products viewed and compare to the number of add to carts, the number of checkouts initiated and the number of purchases. If the conversion rate is lower than expected at any stage that’s where you can focus your efforts when refining the sales funnel.
- Build website custom audiences (WCAs) of all website visitors for retargeting.
- Create audiences of people that have taken the desired action (leads, purchases etc) to exclude from retargeting. This saves you money and stops leads and customers from getting annoyed.
- Create lookalike audiences in seconds. These pixel-based lookalikes will dynamically update over time so they will always be relevant when using them in cold traffic campaigns.
- You can optimize for conversions. A recent AdEspresso $1,000 experiment showed that optimizing for link clicks cost 3.4 times more per conversion than when optimizing for conversions. Simply put the pixel allows you to get the same results for $1,000 that you’d get by spending $3,400 on ads when not using the pixel.
- Dynamic product ads can be created, allowing you to retarget recent website visitors with the exact products they viewed.
The Facebook pixel helps businesses track and optimize their Facebook ads. If you’re advertising on Facebook, you should absolutely install the Facebook pixel so that you better understand how your ads perform.
Tracking the Facebook pixel allows you to place your ads in front of the best possible audience, leading to better conversion rates and ROI and ROAS for your ad budget.
Keep reading to learn all the ways that the Facebook pixel can benefit your social media marketing strategy.
1. Facebook Conversion Tracking
Without the Facebook pixel, you cannot track conversions on your Facebook ads, only other metrics like engagement, reach, and link clicks. Conversions tell you more about your website visitors’ actions, revealing what they click and their customer journey on your site.
The Facebook pixel allows you to track 17 standard conversion events, along with the ability to create custom conversion events. With the Facebook pixel, you can see how your ads perform and how they influence customer actions.
2. Facebook Retargeting and Custom Audiences
The Facebook pixel allows you to track conversions, but some of the conversion events are not necessarily full conversion into paying customers. With the pixel, you can see who visits your web pages and retarget them as a custom audience with new ads to try to lead them back to your website.
If you’ve ever left items in an online shopping cart and later saw those exact items in a Facebook ad, then you’ve been retargeted by that ad campaign. Retargeting allows businesses to nurture leads and remind interested customers to return and make a purchase. Create custom audiences for more specific retargeting ads with the Facebook pixel.
3. Facebook Lookalike Audiences
Facebook has smart targeting tools that can create “lookalike audiences” – users with the same interests, demographics, and behaviors as other users who have visited your site or converted to customers. With the Facebook pixel, you can create more accurate, targeted lookalike audiences who are more likely to take action on your ads.
4. Optimize Facebook Ad ROI
If you're familiar with Facebook ads and Facebook relevance scores, you know that good ads are rewarded on Facebook. The more relevant your ad is, the cheaper the cost per click (or conversion). Using the Facebook pixel gives you better feedback on your ads so that you can adjust and optimize them to get the most from your advertising budget.
The Facebook pixel also helps Facebook to better identify your target audiences, allowing them to place your ad in front of users who are more likely to convert. The pixel can help to optimize your Facebook ad campaigns and improve ROI for these ads.
5. Extra Facebook Ad Tools and Metrics
Installing the Facebook pixel gives you more metrics to measure your ads' efficiency. Without the Facebook pixel, you cannot track conversions, cost per lead, or cost per conversion. You also gain access to custom audiences and custom event tracking, as well as improved targeting. In short, there is no reason not to use a Facebook pixel.