Facebook is taking steps to provide more clarity to direct-response marketers on the effectiveness of their ad campaigns on the social network, announcing the extended beta test of a self-service conversion-measurement feature that it plans to roll out at the end of November.
Optimized CPM (cost per thousand impressions) bidding will also be tweaked by Facebook to better mesh with its conversion data, allowing marketers to serve more relevant ads and increase the return on investment on their campaigns.
Here’s how it works, according to Facebook: Marketers can create and add a snippet of code to any page on their websites — such as checkout pages, registration pages, and donation pages — to measure conversions. When Web surfers access those pages via Facebook ads, those code snippets ping the social network, adding the conversion to a count in ad manager.
Using those data, when marketers begin the ad-creation process, they can choose optimized CPM bidding, and Facebook’s system will automatically show ads to the users deemed most likely to convert.
Facebook added that design retailer Fab.com was one of the beta-testers of the new self-service conversion-measurement feature, and the company reported a 39 percent reduction in cost per acquisition by using optimized CPM bidding.
Readers who advertise on Facebook: Will the self-service conversion-measurement feature factor into your campaigns?