Facebook Introduces New Tool To Measure Sales Driven By Ads

It has always been easy to measure how well Facebook ads are performing when it comes to clicks and views, but what about sales?

Measuring the amount of new business you’re actually getting from Facebook ads, especially offline, is about to get a lot easier the company explains in an announcement today.

With a capability called ‘conversion lift measurement’, Facebook says it can help advertisers more accurately measure how much new business is being driven by ads.

Here’s how Facebook measures conversion lift:

  • When a Facebook campaign begins, two groups are created. One is a random test group of people that see the ads in the campaign, and the other is a control group of people that don’t see the ads.
  • Advertisers share conversion data with Facebook throughout the campaign. Facebook determines additional lift generated from the campaign by comparing conversions in the test and control groups.
  • Any increase in sales in the test group is the result of a ‘conversion lift’ provided by the Facebook ads.

The company says its important to measure conversion lift because it addresses several challenges marketers are currently facing when it comes to measuring ad data, such as an over-reliance on clicks and the rate at which customers are shifting to mobile.

Conversion lift measurement will currently only be offered to advertisers who work directly with Facebook via an account representative. Facebook intends to eventually make conversion lift measurement available more widely.