Facebook has launched a ‘conversion measurement’ tool, letting firms track purchases made by social networkers who have viewed their ads, as the firm looks to woo advertisers looking for more accountable ways to run social media marketing campaigns. The tool is geared towards measuring direct response marketing (such as travel sites and online retailers) rather than long-term brand building campaigns.
Such advertisers have long flocked to Google's Web search engine, which can deliver ads to consumers at the exact moment they're looking for information on a particular product.
Online retailer Fab.com, which has tested Facebook's new service, was able to reduce its cost per new customer acquisition by 39 percent when it served ads to consumers deemed most likely to convert, Facebook said.
Facebook defines a conversion as anything from a completed sale, to a consumer taking another desired action on a website, such as registering for a newsletter.
The ‘conversion management’ tool has been launched following requests from leading advertsisers on Facebook.
Addressing privacy concerns, Facebook said user information that advertisers will receive is anonymous. Personally identifiable information will not be available to protect the privacy of these users.
Product manager David Baser said retailers would be able to see the numbers of people who bought their items, but buyers would not be identified.
Facebook launched a related service for measuring conversions a few months ago this year, it was aimed for large brand advertisers in partnership with Datalogix, a data mining business, aimed at finding the connection between brick and mortar purchases and Facebok ads.
This new conversion is in testing mode, but before this month ends, it will be entirely available for marketers.