Facebook's New Tool Allows E-Retailers to Track Purchases

By Rachel Ramsey November 16, 2012

Facebook has tried many different ways to get advertising and the social network to mix, and now, the company wants more credit for generating online sales. Facebook will begin rolling out a new tool that will allow online retailers to track purchases by Facebook users who have viewed their ads.

"Measuring ad effectiveness and outcomes is absolutely crucial to all types of businesses and marketers," said David Baser, a product manager for Facebook's ads business who said the "conversion measurement" tool has been a top customer request for a long time. The conversion tool is specifically designed for so-called direct response marketers, such as online retailers and travel websites that advertise with the goal of gaining immediate sales rather than long-term brand building.

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.

Marketers will also have the option to aim their ads at segments of Facebook's audience with similar attributes to consumers that have responded well to a particular ad in the past, Baser said.

Facebook has also expanded its physical gifts market, widening to include tens of millions more users and pulling in new retail partners as its sellers, including babyGap, Brookstone, Dean & Deluca, L’Occitane, Lindst and NARS Cosmetics.

NARS Cosmetics recently launched a campaign to let users make over their Facebook profile, ala Andy Warhol. Its limited-edition product line for the holidays is inspired by Warhol, so the company created the NARS Profile Makeover app, which allows users to “Warholize” their Facebook profile for a visual makeover.




Edited by Rich Steeves

TechZone360 Web Editor

SHARE THIS ARTICLE
Related Articles

6 Insurance Companies Investing in Wearable Technology

By: Lindsey Patterson    6/27/2016

Wearable fitness devices are growing in popularity, Tech research firm Gartner says that sales will grow by 18.4 percent this year. Over the past seve…

Read More

Facebook Closes 50 Million Dollar Deal for Live Streaming

By: Andrew Bindelglass    6/24/2016

Facebook seems like it is ready to launch a fledgling version of Facebook Live in the near future, Osofsky said. "We have an early beta programm for a…

Read More

Twilio IPO: Bellwether or Blip for the API Business?

By: Doug Mohney    6/23/2016

San Francisco-based Twilio counts Uber, Open Table, and Nordstrom among its customers. In 2015, the company's revenues were around $167 million with a…

Read More

Brexit: The Whole World is Watching! Including Tech

By: Peter Bernstein    6/20/2016

It is hard to imagine a vote on something- even for those of us in the U.S. consumed and amazed by the daily barrage of presidential election year pol…

Read More

How Steve Jobs Would Fix Apple

By: Rob Enderle    6/20/2016

It is hard to see Apple in trouble. It has massive reserves and remains one of the most powerful brands in the market, yet every week seems to contain…

Read More