Marketers worldwide use various online marketing tactics such as search engine optimization (SEO) to attract visitors and convert them into valuable customers. With the popular social media sites such as Facebook, Twitter and Pinterest around, marketers are now tuning their marketing strategies to work through these social media sites. The outcome is social media optimization (SMO).
To help the marketers with better sale conversions, Facebook recently launched a conversion tracking tool. The aim of the tool is to measure and optimize ads in Facebook pages and to measure return-on-investment (ROI) of Facebook ads by monitoring user actions such as leads, registrations, key page views, and add-to-cart. Marketers can insert a piece of code generated by the conversion tracking tool to the website where conversions occur and if a user loads the webpage with the inserted code on to his/her browser, it signals Facebook that a conversion event has taken place. Facebook then compares the conversion event with the set of people who have viewed or clicked on an advertisement.
The tool can be used as a conversion optimization tactic. Businesses can see how a Facebook ad worked to convert fans on websites after they liked a page. Marketers can use optimized cost per thousand impressions (OCPM) to send ads to targeted users who are most likely to make a purchase on a brandâ€™s website. They can see which ads drive the most conversions and adjust their campaigns accordingly. Using OCPM can help retailers and other ecommerce brands to cut costs on new customer acquisitions.