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Facebook's launching ROI Tracking tool for Ads

Facebook ROI tracking

Amidst all the questions about its monetization efforts, Facebook is now stepping out of its realm attempting to answer some of them with the launch of this new ROI tracking tool.

The tool tracks user conversions to advertisers’ external pages, thereby helping them to measure their campaign’s success.

Let’s now get into the nitty-gritty’s of the tool and see what’s in store for marketers!

What does the ROI tracking tool actually do?


The Facebook ROI tracking tool lets marketers see how their Facebook Ads performed after users clicked on them. It traces users’ movements as they convert on your ad and go to the page your ad directs them to. All you need to do for this to work is to take a piece of code from Facebook and paste it on any page you want to measure conversions on. You can paste the code on a thank you page, a check out page or a newsletter subscription page. When users click on your ad and go to the page you’re tracking, the Facebook ads platform records that someone has clicked on your ad and landed on your offsite page.>

Why marketers should take to the tool...

Any campaign’s success can be determined only if it’s monitored, that’s common knowledge. Now instead of using a third party tool to measure campaigns, Facebook is offering marketers a better way to do it with its ROI tracking tool. Since the tool lets you know the number of conversions you’ve had through your ad, you can analyze the results and make changes to campaigns as you see fit. With the launch of this tool, marketers can now trace the performance of their ads beyond the clicks and impressions metrics Facebook offered before.

This tool is very useful especially for “direct” marketers like retailers and the travel industry who are looking for immediate sales returns more than long term brand building. Earlier, though direct marketers were looking to measure conversions, they could only measure clicks. With this ROI tracking tool, they can now see how many people clicked on their ad and converted rather than just knowing how many clicked on their ad. Marketers now also have the added advantage of getting buyer persona information from Facebook which includes user age, gender, interests and their connection to the brand’s Facebook page. The tool provides information much long (hours or weeks) after the user has seen your ad. This helps marketers know the extent to which their ad played its part in customer conversions.

With the kind of information available through the tool, marketers can aim ads at people who are most likely to click on them and convert, thus getting more value for their ad spend.

What’s more, this tool coupled with the usage of Facebook’s CPM tool means that marketers can reduce their cost per action compared to the same ads run on a cost per click basis. In fact, during testing, could reduce their cost per action by 39%!

What are your thoughts on Facebook’s latest offering? Can you think of any other uses marketers can have from it?

Team Position²

Position2 is an innovative digital marketing agency that accelerates demand through integrated Content Marketing, Paid Acquisition, and Marketing Technology solutions. Our demand acceleration solutions map the buyer's journey across multiple touch points such as search, social, mobile, media, and email. These integrated campaigns are powered by cutting-edge content creation, digital advertising, web design/development, marketing automation, and analytics. We serve hundreds of clients ranging from VC funded startups to Fortune 500 multinational firms. Our 200-member team is based in Silicon Valley and Bangalore and consists of marketing gurus, engineers, data scientists, writers, and designers.