The Magical Marketing Tool
Facebook Pixel was launched back in 2015, however, the uptake for this remarkable business tool is slow. Why is that? Mostly, because people don’t understand:
- What it is
- How it works, and
- How it can help
If used correctly, Facebook Pixel is a great marketing tool and will improve the conversion rate of your Facebook adverts through targeting highly relevant audiences, thus increasing revenue and visibility for your business.
So what is it?
Facebook Pixel is specifically designed for those businesses who are currently running Facebook ads or are planning on running them in the future. In short, Facebook Pixel is a small piece of code which you place into your website. You don’t need to be a developer or a coder to be able to add it, Facebook has step-by-step instructions for you to follow. However, this small piece of code will really make a difference to your click-through rates and conversions whilst also providing you with ROI reports.
What can it do?
#1 Track conversions on your website
You can track any specific action someone has taken on your website. Whether it is:
- purchasing a product/service
- subscribing to your email list
- submitting an enquiry
- clicking on a specific page (you may want to target people who have read a certain article, blog or part of your site).
Facebook Pixel will make sense of the cost of your clicks.
From your Facebook ads account, you can see how many clicks your advert has received and how much each click costs. This is useful as you know how much you are spending each month. However, what is doesn’t tell you is your conversion rates. How many of those clicks led to a sale, an enquiry or a lead? For example, if you are spending £1.50 per click on a particular advert that is promoting a product which costs £50. If you have 300 clicks on that advert, then that advert has cost you £450. You could see this as good value, as 300 people clicked on that particular advert.
Now, imagine you can see how many of those 300 people actually bought from you. Now you can start to see if your advertising and targeting strategy is actually working. So you find out that only 3 of those people converted and bought your product, which means you sold £150 worth of product at a cost of £450 in advertising. Now it’s not such a good conversion rate!
The Facebook Pixel enables you to track that conversion and you can see very quickly if you need to review your advert or your target audience. Within the ‘Ads Management’ section on your Facebook Advertising account, there will be a new tab called ‘Conversions’. This will tell you the number of people who have converted, exactly the cost of that conversion and the total you have spent on those conversions.
#2 It will optimise your Facebook ads for conversions
So, you know the types of people who are converting on your website. You then need to make sure you are targeting other people who are similar to them – ‘Lookalike Audiences’.
Your Facebook Pixel will enable you to build new customers based on the profiles and likes of those that have already visited and taken a particular action on your site. For example, you sell a wide range of salon treatments but want to target those people who are interested in high-value treatments like Botox. You can track those people who have either made an enquiry or searched for that particular treatment. Your advert will then will automatically target people with similar facebook ID’s. This in turn, will lead to a greater number of conversions and better ROI for your business as a whole.
#3 Facebook Pixel can create retargeting ads.
This will allow Facebook to show ads to people who have already interacted with your website or social media page. These can be people who have visited your site, people on your email list or those who have taken specific actions on your website. For example, have bought or liked or searched for something, subscribed to your email list, added to the basket, but not completed to check out. 68% of people do not complete a purchase after they have added items to their basket.
You can use Facebook Pixel to show ads to people who haven’t completed their purchase, to encourage to come back to your site and complete the checkout process. You can show adverts to direct them to products or services similar to those they have bought. And in addition, you can direct them to similar items they have shown an interest in through specific searches on your site. This retargeting makes customers 70 times more likely to buy from you. The retargeted ads have a 10 times higher click-through rate and retargeted customers on average spend 5 times more with you.
This can all be done once you have installed the pixel code on your website. Customers coming onto your site and performing some form of action. You decide which action you want to track, whether this is a purchase, a specific search, an email subscription etc. This will trigger the Facebook Pixel which feeds back to Facebook which then tracks that customers Facebook ID. Once you have this information, you can use it to target these customers with tailored and specific adverts on Facebook.