If you spend ANY money on Facebook ads, you should create a Facebook pixel and install it on your business website. This is often the first advice I give to any Facebook marketers. The Facebook pixel is amongst the most useful tools that Facebook has created. Why? Read on to find out the key benefits of the Facebook pixel for your business.
1. Optimise Facebook Ad Performance
Facebook already knows which of their users are seeing and interacting with your ad. Installing a Facebook pixel on your website gives Facebook extra information about what those users are doing on your website. This allows Facebook to help you match a user’s website activity back to your Facebook ad campaigns.
Sure, you can track Facebook ads against the usual metrics – CPM (Cost per 1,000 Impressions), CPC (Cost per Click), CTR (Click-through Rate), etc. But guess what? None of that really matters!
What matters is how your Facebook ads are contributing to your business goals. With the exception of ads solely intended to build brand awareness and perception, your Facebook ads should be assessed against down-funnel conversion and other business metrics. Depending on what business you’re in, you need to know which ads are contributing to website lead conversions, product page views, enquiry form submissions, basket activity, and sales.
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” – John Wanamaker (regarded to be a pioneer in advertising and marketing). If only Wanamaker had the Facebook pixel.
If an ad is performing well? Increase its budget.
Find that an ad is doing less well? Reduce its budget or kill it.
Being able to assess your Facebook ad performance against business metrics is a major benefit of the Facebook pixel. This is going to help you to dramatically improve enhance your ad spend, improve ad performance, and increase your business success.
2. Re-Target the Right Audience
Ever visited a website, and then found that their ads were subsequently being displayed to you on Facebook? If so, you have been re-targeted (re-marketed).
You can do this too with visitors to your website. By embedding a Pixel on your website, you allow Facebook to identify any of your website visitors who are also Facebook users. You can then create a custom audience within Facebook Ads Manager based on these visitors, and target your ad campaigns at them.
The general formula for creating a custom audience based on a Facebook pixel is as follows:
Visitors who did X in the last Y days.
The possibilities are endless. For example, you could create an audience for your ads based on those who have visited your website within the last 30 days. Or for engaged audiences, you could target the top 5% of your visitors by time spent on site within the last 14 days. Or for qualified sales leads, you could target those who have visited at least 5 products pages (or who have converted on a particular page) in the last 7 days.
3. Find New Audiences
Based on the custom audiences defined above, Facebook could help you advertise to similar (“lookalike”) audiences based on their algorithms.
Ideally, you would create lookalike audiences based on customers. One way to achieve this is to have the Facebook pixel track a conversion event (such as a user landing on the post-payment thank you page). You would then instruct Facebook to create a custom audience based on these customers, and next a lookalike audience based on this custom audience.
Finally, simply target your Facebook ads at this new lookalike audience who are going to be people most likely to convert into paying customers.
Let’s face it: With these benefits of the Facebook pixel, you are making a huge mistake if you do not use one.