Selling on Facebook is now a bit easier to track as the company is readying a new analytics tool that allows e-retailers to see which ads are most effective.
The conversion tracking tool should be a popular one, but its functionality does not give critical insights some companies might want. The people who click the ads will remain anonymous. Good for privacy, not quite as helpful to ad sellers. Still, it's a step forward for the one billion member strong Facebook as it tries to chip away at Google's stranglehold on online advertising.
Best for Direct Response Marketing
Retailers who have been considering buying Facebook ads will likely find the tool useful, and that could help sway them to advertise on Facebook rather than Google. It couldn't hurt anyway. Any insight companies can get from advertising campaigns will help in targeting the next time around.
One way the tool will help do this is to allow companies to sell new ads to people with similar attributes to those who responded to a previous ad. It's worth noting here that Facebook defines conversions as any desired action taken, like registering for a newsletter, and not just completed sales.
Once the tool launches at the end of the month, marketers will be able to track more than just the numbers of clicks or numbers of app downloads triggered.
Facebook Ads vs Pages
Of course, there is more than one way to make money on Facebook, and trying to convert Likes into dollars is one popular way. This has its own set of pitfalls, however, and that is one of the main reasons why Facebook ads hold so much promise.
Back in September, Facebook CEO Mark Zuckerberg said Facebook was focused on mobile, and so far that has helped the company's bottom line. For customers though, convincing them to advertise on Facebook might be a tougher sell because of the shadow of Google. Google shows relevant ads during a search, and that immediacy is hard to beat.
Along with new features like Sponsored Stories, Facebook's tracking tool is one more piece the company can use to get advertisers on board. Tell us in the comments if you have a loyal Facebook following and if your Page is a moneymaker.