Are Facebook Advertisements a Good Investment?

  • By: mvadmin
  • Date: April 28, 2019
  • Time to read: 2 min.

If you have a business and have run an advertisement on Facebook, you must have wondered how much new business the advertisement brought in.

Facebook and some other social media platforms have powerful sales tracking software. These software tools can give you a quick appraisal of whether the ads are bringing you more than you are spending on them.

For example, if you are a company selling light bulbs online for $50 each and are running ads on Facebook and it reports that the ads are costing you $2 a click. How do you know if this $2 is worth paying?

If every person who clicks on the ad and thus visits your website buys a light bulb this is a very effective advertisement; however, if only one of fifty people who visit your page purchase something then it means you are paying more for the ad than the cost of the product. Facebook will tell you the price of each click, and also provide details on how much each click is earning you.

The Facebook Pixel

This tracking is possible with a new “Facebook pixel” – a bit of website code that your site visitors can’t see.

Facebook pixel code should be placed on every page of your business’ website and then you can check for your details on Facebook’s ad manager.

The code is available at your own Facebook ad account at You also need to provide details about your ‘success page’ – which is usually the last page when the customers purchase something on your site. (This page mostly contains things like ‘Thanks for your purchase’ etc.). You will also need to provide Facebook with the value of each sale.

This pixel also lets you track every lead, quote request and appointment booking. You can even apply a conversion value for these if you want. This could be important for service related businesses like a nail salon where average appointment could generate a certain amount of revenue, but some people don’t turn up for their appointments.

You can then get information about how much you made due to the ads. This software would be more precise for sales that happen online but could be beneficial for all services as well.