Facebook has a new feature! (gasp) And this time it’s for all of us digital marketers out there utilizing Facebook Advertising.  The new feature, which is still in Beta, allows you to know if the really expensive Facebook traffic you paid for actually converts.

The implementation is simple, and if you’ve already set up your Google AdWords for conversion tracking (and you should!) then it’ll look familiar:

<script src=”//ah8.facebook.com/js/conversions/tracking.js”></script><script type=”text/javascript”>
try {
FB.Insights.impression({
‘id’ : 123456789,
‘h’ : ‘abc123abc123′
});
} catch (e) {}
</script>

This will enable you to track contact conversions within the Facebook interface.  Even if you have your web analytics set up to track Facebook conversions this will put the information all in one place and save time on report generation.

There is also a handy guide to using Facebook Conversion Tracking.  They’ve done a great job detailing just about everything- except a pesky thing called a “Conversion Rate.”  (Oh boy!)

Facebook & Conversion Rate

A conversion rate can really look at any two factors, depending on what KIND of conversion you’re tracking.  It’s typically calculated with the number of successes divided by the number of attempts.  Within Facebook reporting, a conversion rate is the number of times the desired action (purchase, signup, etc) occurs divided by a modified number of impressions- or times your ad was shown.

It’s not simply Conversions/Impressions.

Believe it or not, Facebook adds in “Basis Points” to your Conversion Rate calculation.  They do this because simply dividing your 10 purchases by the 800,000 impressions is going to give you a crazy Conversion Rate of: 0.0000125

Rather than make room in their reports for at least 5 zeroes, they modify the number of impressions by DIVIDING it by 10,000. The result on your 800,000 impressions divided by 10,000 is now a manageable 80.

Facebook then calculates: 10 / 80 = .125 or 12.5 %

While it seems sketchy at first glance, they’re really only making the report a little easier to read.  Just remember you DON’T really have a 12% conversion rate!

Happy Converting!

If you haven’t been advertising on Facebook, you should definitely test it.  I’ve seen it work both really well, and pretty miserable.  There are a lot of factors, but one thing is sure- you won’t know how your audience responds until you start testing it!  At least now you can see how those pricey, highly targeted Facebook ads are performing within their interface!