This is Why You Must Use Facebook Conversion Tracking [EXAMPLE]

Why You Should Use Facebook Conversion Tracking I obsess over the ads that I run. I check them every morning, afternoon and night. And if you pay attention, you’ll spot some pretty darned interesting things.

The Example

I created a campaign that uses a Facebook video and a text call to action with a link to a product landing page. That landing page focuses on three different pricing options.

The Surface Stats

Here are the final six columns of stats for the ads of a campaign within Ads Manager.

Performance Facebook Ads Manager

This shows the stats that the majority of marketers will focus on. So let’s break this down…

Clicks: You want clicks, so you’ll look at this. If this is how you measure success, here is how we break down the performance of these ads:

  • Ad 5: 773
  • Ad 1: 110
  • Ad 2: 100
  • Ad 3: 43
  • Ad 6: 14
  • Ad 4: 4
  • Ad 7: 4

Of course, there’s no context to those clicks. But Ad 5 is pumping out a ton!

Click Through Rate: This will help us better understand the percentage of people clicking.

  • Ad 1: 1.243%
  • Ad 5: 1.073%
  • Ad 6: .639%
  • Ad 7: .163%
  • Ad 4: .162%
  • Ad 2: .132%
  • Ad 3: .104%

Average CPM: Some marketers spend far too much time looking at this one. They think that a higher CPM means a waste of money. There’s quite a disparity here regarding average CPM (in reverse order from cheapest to most expensive):

  • Ad 2: $.09
  • Ad 3: $.14
  • Ad 5: $.26
  • Ad 4: $.26
  • Ad 7: $.30
  • Ad 6: $.56
  • Ad 1: $3.59

Cost Per Click (Manually Determined): While Facebook doesn’t show this in all cases, a smart marketer will calculate it manually based on total spend over number of clicks. So let’s see how these ads stack up:

  • Ad 5: $.02
  • Ad 2: $.07
  • Ad 6: $.09
  • Ad 3: $.14
  • Ad 4: $.16
  • Ad 7: $.18
  • Ad 1: $.29

The Assumptions

If I hadn’t used Conversion Tracking, I would assume that Ad 5 was phenomenal. In fact, there would be no reason to run any other ad. I was getting a ridiculous $.02 per click and that ad got me more than 7X the total clicks of any other ad.

Ad 1, while it got me the second most clicks, also was easily the most expensive per click. It’s also the ad that was eating up most of my budget (nearly half). Some evidence here to stop Ad 1 based on surface stats.

Otherwise, Ad 2 is the one ad I may consider keeping alive. It brought me a $.07 CPC while netting 100 total clicks.

These are assumptions. But when you assume…

The Conversions

I actually did use Conversion Tracking for these ads. In fact, it was set up so that Conversion Value is returned based on any of the three packages a customer may have purchased.

Value of those packages: $19, $29 or $79.

So here are the results when we include Conversions and Conversion Value:

  • Ad 1: 13 Conversions, $287 Conversion Value ($31.81 Spend)
  • Ad 2: 0 Conversions, $0 Conversion Value ($6.59 Spend)
  • Ad 3: 2 Conversions, $48 Conversion Value ($5.85 Spend)
  • Ad 4: 0 Conversions, $0 Conversion Value ($.65 Spend)
  • Ad 5: 0 Conversions, $0 Conversion Value ($18.41 Spend)
  • Ad 6: 0 Conversions, $0 Conversion Value ($1.23 Spend)
  • Ad 7: 0 Conversions, $0 Conversion Value ($.73 Spend)

Let’s backtrack…

We had assumed that the top performing ad would be Ad 5 based on a ridiculous $.02 CPC. It also led to 773 clicks, so we thought this would lead to a bunch of conversions. Ad 2 was the other ad we’d consider keeping alive.

Meanwhile, it looked like Ad 1 was a complete waste of money.


Ad 1 was the ad that brought the most conversions and value. Easily. We’re talking a 9X ROI on that ad. Ad 3, another ad we would have stopped, was bringing a 8X ROI.

The ads we thought were performing? No ROI. Nothing. Potentially throwing money away, though an argument can be made for small sample size for Ad 2.

Use Conversion Tracking!

What did we learn here?

We learned that it’s very easy to get distracted by the wrong stats.

We learned that a high Optimized CPM may just be a sign that the ad is highly optimized (which is what it’s supposed to be!).

We learned that if you don’t use Conversion Tracking, you’re going to have a hard time determining which ad is actually leading to revenue. As a result, it’s very easy to make the wrong decisions when managing your ads.

So use Conversion Tracking! It’s really not that hard to do. Go here to learn more about how you can set up Conversion Tracking on your site and for your ads.

  • Mark Leo

    As always, great stuff Jon. Diving into conversion tracking this week in earnest.

    • Jon Loomer

      Thanks, Mark!

  • lukemoulton

    Great tips Jon. All traffic was not created equal!

  • Nitish Dhiman

    Jon you have shared awesome information. This article let me know the new things which i did not know before !!

  • Eran Malloch

    Spot on Jon. Conversion is KING (well, ROI coupled with Conversion) :-) Most of the other stats are relatively useless by themselves. The goal is to spend $1 and make $2 in profit (or $5 or even $25!), not just get a heap of clicks, cheap or otherwise. As always, your content is great!

    • Jon Loomer

      You get it, Eran!

  • Adomas Baltagalvis

    Couldn’t agree more. People who claim that “it’s impossible to track the ROI of social media/facebook marketing” should stop being lazy and learn how to use the basic tools available, one of which is the conversion pixels. :)

    On a side note, I love the way you added “click to tweet” to your latests posts but I cannot find a way to replicate it.. could you share which tool/plugin are you using for them?

    • Jon Loomer

      The plugin is Click To Tweet by Todaymade.

    • Filip Galetic

      No one says it’s impossible to track ROI of an AD, duh. It’s the non paid content that’s harder to determine the value of.

  • Silver

    Jon, show your ads so we can see them. Maybe ad 5 had big boobs and no wonder you had 2 cent clicks since the ctr is hight and no one was interested in your offering since you are not selling big boobs once they landed on your page. Also, did all the ads had the exact same targeting and just different ad copy if not then there are even more things that don’t tell you much from this case study.

    • Jon Loomer

      Hey, Silver. The ad was exactly the same in each case. The only difference was the targeting.

  • Mark Orr

    Hey Jon, awesome info and I have been doing quite well with the ads but am having trouble getting the conversion value aspect to work with our eCommerce shopping cart, have you any more info on how to set that part up? Thanks as always for the fabulous info you provide, way and above most marketers.

    • Jon Loomer

      There are two areas within the pixel that are defaulted to 0 that need to be changed to your conversion value. You should be able to find them, but let me know.

      • Mark Orr

        Thanks Jon, managed to get it sorted with the right code snippet from the cart software. This is proving to be a game changer for our business and I’m so excited to drive this forward. We are already averaging a 60% increase in year on year figures, so this is going to be massive. Just nee to delve into retargeting next. You are responsible for a large proportion of our FB success and the fantastic info you share. Wish I had got the pre launch offer on your Power Editor course, but hey ho. Cheers.

  • Scott Ayres

    Good stats…

  • Dean

    Jon, were these just different ads, but same landing page for all ads?

  • sharaegirl

    where do you track the conversion? I have the pixel installed and working, but I do not see the history of conversions, where do I go to see that?

  • Dr. Bill Davis


    I have been using conversion pixel’s to track registrations for about a month now on my Facebook ads but I am continuing to have a problem that I hope maybe you can help me with. The ads I am running are sending traffic to a landing page that has an offer for an email video series. The landing page was created in optimize press, the opt in box is from get response and everything seems to be working fine with the conversion pixel except the number of registrations that Facebook says that I am getting is about ten times what get response is saying that I’m getting. I have discussed this issue with Facebook several times and with Get Response and they are both pointing to each other as the problem. It is so frustrating! Have you had this problem with your conversion pixel’s that are tracking registrations? And if so, how do I correct the problem?


  • Dan

    Jon this is awesome and you are a smart, smart fella. I’ve got conversion tracking running but don’t know how to use it – the code is on my downloads page where I want it, but I don’t know how to tell if the customer is clicking on “donate now”?

  • jfccohen

    Or you can just use (if you’re a brick and mortar marketer that wants to see which digital placements generate the most in-store sales)

  • Jason HJH

    Hey Jon,

    A quick question: If you’re using an ad to drive website clicks and you want to track email signups, where should you place your conversion pixel? I was thinking that I should place it on my email signup confirmation Page, but anyone else who signs up for my email address and confirms their subscription via their email inbox will also be directed to this Page. Will there be conflict?

    • Jon Loomer

      Not necessarily a conflict. Facebook will only report those people who were shown your ad and visited that conversion page.

      • Jason HJH

        Hey Jon, I got it – thank you!

  • czajna

    Jon, does Facebook conversion pixels track conversions across devices? Is the conversion tracked by Facebook Conversion Pixel in case user browse on mobile, purchase on desktop?

  • Marion L.

    Hello Jon ! Thanks for the interesting article ! I have a question regarding conversions, that I implemented on my Facebook ad. How is it possible that I have 3 times more conversions than clics for this ad ? The ad is optimized for conversions, and a conversion consists in signing up for my website. But unfortunately I did not have that amount of registrations on the period my ad was on ! Any clue about what happened ? Thank you very much.

  • Filip Galetic

    Could it also be misleading though? It’s the job of the landing page and not the ad to convert, right? The fact that a certain ad has higher conversion rate could be unrelated to the ad itself and more to the experience the person had when they reached the squeeze page. In that case, wouldn’t the amount of traffic and cost per click be more important than the conversion rate?

    • Kazuki

      I agree the squeeze page needs to drive sales. It could have been just the luck of the draw that ad 1 & 3 so happen to have a conversion. These stats would tell me the sqeeze/landing page needs work.

    • Dimitar Stojanov

      Yeah, I was wondering the same.

  • Philip

    How about the payment? When choosing “Website Conversions”, do you pay per click (if you optimize the campaign for clicks) or for actual conversions?

    • Dimitar Stojanov

      Actually neither, you pay per 1K views. Facebook call this oCPM (Optimized CPM) this is not same with the regular CPM, as FB shows your ad to people that are more willing to buy stuff from other sites, in this case yours.

  • Dimitar Stojanov

    I still wonder about the landing page, how come same landing page didn’t convert same with different ads. I can’t believe that the visitors got the buying rush from the ad image and text. I thought ads should be optimized for clicks and the landing page should be the one who did the conversion. Can someone elaborate this?

  • Eric

    Good article! Thanks for the breakdown.
    Maybe you could shed some light on my first campaign that I ran over the weekend. I am tracking for conversions and Facebook shows that i have 3 of them. I have the conversion pixel is placed on a PDF download page that one only gets to after confirming their email address through a MailChimp list signup. MailChimp shows no new list members. For that matter, I have a goal setup through google analytics that says the same thing. Any Idea why FB is telling me it was successful?