Drive High Conversion Rates with the Facebook Exchange
Published: December 12, 2012
Author: Joe Stanton
Today’s post is by Nadja Yacker, media analyst at Ampush.
Facebook Exchange (FBX) is a new chapter in how brands should think about Facebook. It changes Facebook from a platform mainly focused on social engagement and awareness and allows brands to take advantage of their user base to drive real-time purchases. This is an exciting new opportunity for all brands looking to take advantage of Facebook’s large network of people and to capitalize on the holiday shopping season.
Why Should Brands Care?
The holidays are the busiest shopping weeks of the year – and thus a great time for brands to take advantage of advertising budget on the Facebook Exchange and capture users with more intent to purchase than at any other time of the year.
How it Works
FBX allows brands to retarget shoppers who have already expressed interest in their products and keep their brand top of mind to drive more purchases. The Facebook Exchange provides a way for advertisers to use retargeting to reach users on Facebook. A brand will drop a pixel on their website and place a cookie on the browser of users who have hit their website and leave. When that user logs onto Facebook, the Exchange helps advertisers serve an ad for that specific item they just viewed. The user clicks the ad and gets taken back to the brand’s website, where we track whether or not that user purchased.
It is even possible for brands to take advantage of users who have made a purchase in the past. Maybe a user purchased something online within the past month. Brands can serve an ad to that user weeks or months later to remind them of the brand and drive additional sales.
One of the main things to consider when running a campaign on FBX is pixel placement. At the very minimum, brands can place a pixel on the home page as well as the purchase confirmation page to enable them to target only users who left their sales funnel. Optimally, pixel placement should be even more granular to gain market insight. We suggest placing pixels on a few pages (such as sale pages) to track which sources of FBX traffic drive the best conversion rates. It is also important to ensure that the pixels are placed on high-traffic pages to take advantage of the most site visitors.
While the holiday season is the busiest shopping time, people make purchases all year round. Now is a great time to test this platform out and see how it can fit into your 2013 social media marketing strategy. Test it out for the holidays, learn some best practices, and take advantage of purchase intent year-round.
How it Performs
In tests, we saw a cost per sale of around $5 with average order valued at $80, or about a 16x ROI. Within the first day, Ampush drove hundreds of sales for a retail client.
FBX can recapture highly interested users who didn’t follow through on a purchase or recapture them to purchase again. Advertising with FBX is a clear choice for brands looking to drive purchases and profit using social media.
Utilizing the new FBX platform during the holiday shopping season is a great way to supplement your social media advertising strategy as well as reap a great return on investment through monetizing social media ads!
– Nadja Yacker is a media analyst at Ampush, a social technology company in San Francisco. Prior to working at Ampush, Nadja attended Carnegie Mellon University.