If you need a clearer view of how much you're gaining through your Facebook campaigns, you should start using Facebook Pixel. This little code can do a lot of work for you and your business. It is incredibly useful in tracking conversions and pieces of your user behavior that you never thought you could even gain access to. It could be just the secret weapon you were looking for to gain more insight into exactly how and why your ads are converting as they are.
The first thing that your Facebook Pixel can help you with is tracking conversions. A conversion can be anything you want, a completed action such as someone making a purchase, a lead, a subscription, etc. Now, how much does this conversion cost? That’s a very important question to most advertisers.
Let's say you're selling a product or service for $30 and in order to get people to your website, your cost per click is $1.50. That doesn't seem like a lot, right? It depends. If you get 150 clicks, that means you already paid 225$. Having the Facebook Pixel installed allows you to actually see how much profit you made from those clicks and if that $1.50 per click is worth it or not.
If you made 50 sales out of those 150 clicks, then your profit would be $1.275. That's awesome, but the average lead conversion rates are below 10%, so your profit might not be as high as the one in my example. If only 5 people bought your product, you get $150 in total, so you are spending more than receiving, therefore no profit, no satisfaction. Losing money means you want to rethink your copy, creative, and audiences. Something is definitely not kicking where it's supposed to and despite your low cost per click, you are still losing money. Your pixel can more easily identify this relationship for you.
OPTIMISING AROUND CONVERSIONS NOT CLICKS
Another reason you want to be using the Facebook Pixel is for optimising your ads for conversions. Facebook will try to find more people like the ones that have already completed a conversion on your website. Those people are more likely to convert, since they have similar characteristics to the ones that already converted. This doesn’t mean clicks by the way, you can optimize around clicks on your ad, or conversions on your site. You’re better off trying to find more people that will actually buy, than more people that will actually click.
Facebook Pixel can also be used for retargeting ads. This is mainly for people that have already used your website or interacted with your brand. With the Facebook Pixel you can target people by the action they took on your site, such as searching for a certain product, adding another to their wishlist, adding it to cart and so on.
For example, if someone added some products to cart and for any reason they didn't purchase, you can use retargeting to remind them to complete the purchase.
Pretty useful stuff, right? These are the main reasons you might want to install the Facebook Pixel into your website. It's time to try different strategies and get the most out of this amazing tool! By the way Google has a pixel too, so once you’re done with this, you might want to look into Google’s pixel benefits as well!