Measuring ROI is one of the most important aspects of running ad campaigns. It's also the most challenging, particularly with social media marketing. Businesses using Facebook Ads now have an easier way to see if ad campaigns will be successful by pitting ads against one another.
Facebook has updated its Conversion Lift analytics tool to help advertisers measure how effective ad campaigns are in meeting specific goals. This update lets businesses discover which types of Facebook Ads units will maximize their ROI, before actually going live and incurring charges.
Originally launched in January, Conversion Lift was designed to help advertisers see how Facebook Ads campaigns are or aren't driving business, beyond simply looking at ad clicks. The tool also shows how campaigns are driving additional business offline. [Facebook for Business: Everything You Need to Know]
Conversion Lift works by testing ad campaigns against a control group. Ads are shown to a random test group, which sees the ad, and the results are compared to another random test group, which does not see the ads. This information is combined with different sets of data from Facebook, point-of-sale (POS) systems and other sources to determine the campaign's effectiveness.
With the new update, businesses can now use Conversion Lift to measure ad success in reaching specific goals, such as increasing website visits, growing marketing lists, boosting sales, customer acquisition from call-to-action buttons and more. This is done by comparing different ads against one another, to see which one is more effective in reaching the desired result.
"We're adding new capabilities to Conversion Lift that help marketers understand exactly which of their Facebook ads are driving their ad objective best," the company wrote on its Facebook for Business blog. "Advertisers can compare multiple ads with the same objective against each other, so they can not only see if Facebook advertising is working, but [also see] exactly which advertising approaches work the best for their goal."
The update also allows advertisers to test ads based on their content, not just the type of ad unit or campaign. For instance, businesses can compare how video ads work versus still-image ads, link ads versus carousel ads, brand ads versus direct response, mobile versus desktop and other variations.
Making this update even more valuable, it can also measure Facebook Ads' effectiveness outside of the Facebook platform. Comparison test metrics include in-store purchases, in-app purchases and website sales.
To learn more about Conversion Lift and how to run Facebook Ads tests for your business, check out Facebook for Business.