Facebook has long been a popular platform for business and retailers worldwide. According to a report from Reuters, the social network has started to roll out a sales tracking tool. Social media ROI is a topic of much debate and this new tool is said to better help businesses track their sales from the platform.
The sales tracking tool directly integrates with Facebook Ads and will track purchases from those who have viewed a company’s 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 sales information that advertisers receive is anonymous, said Baser. “You would see the number of people who bought shoes,” he said, using the example of an online shoe retailer. But marketers would not be able to get information that could identify the people, he added.
As far as who this new tool will appeal to the most, it’s mostly geared towards marketers who are focused on generating sales now versus long term and simply getting a potential customer into their marketing funnel. Facebook will also benefit because it’ll allow businesses to better understand the impact of an ad.
If the results turn out good-to-great, that means more money will be spent with ads. Fab.com was one of the first to test the sales tracking tool, and was able to reduce its cost per new customer acquisition by 39 percent.
Not too shabby, and with stock price up around $23 after the most recent stock lockup expired, this could prove successful not just for marketers, but Facebook as well.