Facebook made an important announcement in early 2013 about the launch of a new conversion measurement and optimization system on its platform. This new conversion measurement tracking tool is essentially a way to measure and optimize Facebook ads by showing the website conversions they produce. This is a great tool for direct marketers looking to demonstrate the ROI of their ad campaign. Here are some highlights of this new feature.
return on investment ROI Facebook conversion measurement optimization 
Conversion measurement tracks how Facebook ads drive checkouts, registrations, leads, key page views, adds to cart or other website conversions for brands. Conversions can be seen across all types of Facebook ads, whether or not the ads are driving to a Facebook page or external website. By using optimized CPM (OCPM) along with conversation tracking, ads will be delivered to people who are most likely to convert on a brand’s website.
 
How it works:
  • A piece of code that the tool generates will need to be added to the website where the conversions take place.
  • Whenever a person loads a page with the code on it in his or her browser, the code tells Facebook that the conversion event has occurred.
  • Facebook then matches that conversion event against the set of people who have viewed and/or clicked on an ad.
  • The ad manager will report on the designated action for the ads allowing us to see website performance of ads post-click (e.g. Ad X drove Y sales).
What it means for you:
 
This new feature allows brands to quickly see the results and impact in one tool making it easy to optimize ads based on who is most likely to convert using OCPM. Brands will be able to see how fans converted on websites after liking a page as a result of a Facebook ad. Using OCPM can help retailers and other ecommerce brands reduce their cost per new customer acquisition. Additionally,Facebook conversion measurement is the only solution that can report when a user views an ad on one device (e.g. mobile phone) but converts on another (desktop computer).
 
You can find more info on conversion tracking here.
 
What do you think about Facebook’s new conversion tracking tool? How will it impact your brand?