The Facebook Pixel – Why Analytics and Data Make Ads Better

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As a business owner, you’ve probably felt at a crossroads when you need to make a decision regarding your ecommerce or advertising efforts. No decision is risk-free and definitely not all decisions will take you to the place where you want to get.

owever, making decisions with blind eyes is much riskier and will most likely end up as a waste of time and budget than having a data-based decision process.
In today’s world, almost everything is measurable or is already being measured. This provides tons of information as to what kind of actions you can take to get the best results out of your ad campaigns.

Facebook, as the largest social media platform in the world, is probably a common way where you stay in contact with your audience and customers. However, as you might have noticed, the sales don’t precisely occur on Facebook, but on your website or webshop.

So how can you know which ads are working and which ones are a waste of money? This is where the Facebook Pixel comes in place. In this article we’ll see why it’s so important to have the pixel installed on your website and how it can help you to make your ads better.

What’s the Facebook Pixel?

The Facebook pixel is an analytics tool that allows you to measure the effectiveness of your advertising by understanding the actions people take on your website. It is basically some lines of code that go into your website and track people’s behaviors in there.

Facebook needs data to deliver the best results

Facebook can be a powerful tool to reach your target audience, however, there is not a lot it can do with little data. Having a pixel on your website allows Facebook to identify what kind of actions users can perform in there, learn about their behavior and display your ads to similar people who will find them most relevant depending on the objectives you want.

Not only that, but also website visitors can perform multiple actions and some of those actions can be more valuable than others. For example, someone who added a product to their cart is probably more eager to buy than someone who only viewed your home page and hopped out of your website almost immediately. Without a pixel, Facebook wouldn’t know if it’s doing the job right. The pixel sends out all this information from your website to Facebook so it can optimize your ads and show them to people who are more likely to take an action you care about.

Easily discover “leaks” in your funnel or strategy

Are people landing on your page and not taking any further action? Are they adding to cart but not purchasing? These are some insights you can get from the information the Facebook Pixel collects.

Retarget your audience

Since you know what actions people performed on your website, you’ll get a better idea of what stage of the funnel they are in and thus, you can retarget them with specific offers to drive them deeper into the funnel. On the contrary, if you don’t have a pixel, you will not be able to show these specific ads to the people you want.

Take better, data-driven decisions by measuring results

You can experiment with different campaigns objectives, audiences and messages, and see which ones are resonating better with your public depending on the reporting results Facebook provides and your company’s objectives.

This is an example of a purchase campaign we ran in the past. As you can see, with the pixel we can understand how each ad, adset or campaign performed, or in other words, how many purchases are attributed to each one of the ads and how much money it means for the business in terms of sales. This helps assign the budget to the best performing ads and optimize the results.

Even though selling is important, sometimes businesses have different objectives such as creating brand awareness, building up engagement, collecting leads, etc. So the above mention not only applies to purchases but for other actions as well.

Final thoughts

The Pixel is not the only analytic tool you need to consider when running a webshop, but it is indeed one of the most basic and important ones. Basing your decision-making process on the information you have available will give you the piece of mind you need to focus on other parts of your business.

Stay tuned for more articles about analytics tools you can use to improve your results!

Note: with the new iOS 14.5 release and its privacy features, the way the pixel collects information has varied. Check out our article to see how this update affects the information you can get from Facebook and what you can do to keep your business up to date.