Learn how to maximize your Facebook ad budget with a Facebook Pixel

Increasing conversions should be one of the main goals of every business. If you chose to do advertising through Facebook and have an ad budget in place, then you should do all that you can to maximise it. This is where Facebook’s Pixel comes in! Facebook’s Pixel is basically a short code that you put on your website, that will help you with conversion tracking, ad optimisation and retargeting. Don’t let the “code” part scare you, implementing a Facebook Pixel is really simple, and you don’t need to be a programmer to do it. If you want to know how to set up a Google Pixel, we’ve created a useful step-by-step tutorial that you can view here.

Why you should track conversions

In order for your marketing campaigns to work effectively, you need to measure them and make adjustments as needed. Tracking conversions is one of main KPIs (Key Performance Indicators). A conversion can be anything – it’s a completed goal on your website. This completed goal should relate to your overall marketing and business goals. If you are running an online shop, then checkout (a sale) will be your main conversion.

Facebook campaigns show you how much each ‘like’ or ad impression is worth, but what’s the use of these metrics when you don’t know how many customers have actually performed your desirable action or goal? Whatever your conversion goal might be – whether it’s gathering leads, subscribers, receiving phone calls, app downloads, and anything in between, it’s important that you measure it.

How to use Facebook Pixel to track conversions?

With Facebook Pixel, you’ll see a new tab labelled “Conversions” in your Facebook Ads Manager. Conversion metrics can tell you exactly how much it costs to get a person to buy your product through Facebook ads. Let’s say you have set your Facebook Ads budget to be ZAR500 and that you are selling a product for ZAR100. If you get hundreds of likes, but only sell 2 items, then that means that you have spent ZAR500 and earned only ZAR200 – of which you still need to deduct product cost, shipping costs, etc. Through Facebook Pixel conversions, you will be able to see if you are losing money, and whether you need to optimise your campaign.

How to maximise your campaigns through lookalike audiences

Facebook’s Pixel will help you expand your reach by optimising your conversions. Once the Pixel gathers sufficient data about the people who have already completed the conversion, it will find similar people through an algorithm – and show them your ad! It’s that simple, Facebook Pixel does all the work, and you get more conversions.

Sales funnel misinterpretation

Sometimes people just need a nudge in the right direction. Every sales funnel picture is the same, it shows a funnel, where the end goal is a completed conversion. In reality, things aren’t so funnel-shaped and easy. Ideally, a person will click on your Facebook ad, which will lead it to a landing page on your website. Ideally, there will be an action that the person can perform, like – complete the sale, sign up or call you. But people, now more than ever, make informed choices before they buy a product. The sales funnel would consider this person lost, because he or she exited your website without completing the goal. Many people just want to know more about the product before committing to the purchase. They will perhaps Google experiences, compare it with similar products, ask their friends about it. At this stage, they aren’t ready to buy your product, and that’s where that nudge in form of retargeting can really help you.

Creating retargeting ads with Facebook’s Pixel

According to eMarketer, three-thirds of shopping carts throughout the world remain abandoned, which means people got to the final stage of sales funnel, but didn’t complete the purchase. And with Facebook Pixel, that can be your goldmine. Create an ad that will specifically target people who have previously visited your website, or simply target people who have abandoned the cart. A Pixel also allows you to target people who have completed an action on your website, like pressing a call button, subscribing to your newsletter, or searching for something specific through your website’s search function (if you have it).

This opens a world of possibilities for marketing. For example, you can target email subscribers with an ad that will offer them a discount. Or you can serve an ad to people who added a product to the shopping cart and didn’t complete the purchase, so you can remind them to come back and finish it. Retargeted customers are 70 times more likely to complete the purchase! You can find a very interesting retargeting infographic here.

Ad Retargeting in Numbers – Statistics and Trends

Image by Invesp

If you need help with your Facebook marketing campaigns or setting up Facebook Pixels for your different campaigns, get in touch with us. Let us help you optimise your advertising spend!