"Ecommerce operators are typically experts in their products or industry, but not in advertising. I've seen conversion campaigns, for instance, with poor performance because the Meta Pixel was firing on the wrong event. One merchant went from a 0.3% conversion rate to 27.0% with the correct setup. The difference was not the ad creative, audience targeting, or page layout. It was pixel event tracking."
"The Meta Pixel connects a website and the Meta Ads platform. The process goes like this: A Facebook or Instagram user clicks on an advertisement. The pixel associates the ad click with the website visit. When the visitor completes an action (e.g., a purchase, abandoned cart, page view), the pixel reports back to Meta Ads. Meta learns from that data who is most likely to buy. Meta Ads targets those prospects. Put another way, the pixel tracks the first purchase, and Meta Ads uses that data to optimize who then sees the ads and the headlines, descriptions, and images. With each cycle of action and learning, Meta Ads gets better at finding customers for the store."
The Meta Pixel is a JavaScript snippet that links a website to the Meta Ads platform and enables event-based conversion tracking. The pixel records actions such as purchases, abandoned carts, and page views and reports them back to Meta Ads. Meta Ads uses that event data to learn which users are most likely to convert and to optimize targeting, headlines, descriptions, and images accordingly. Proper pixel event setup can cause major performance improvements, as seen in a merchant increasing conversions from 0.3% to 27.0%. Shopify integrates with Meta via a plugin using both the Meta Pixel and Meta's Conversion API to share events.
Read at Practical Ecommerce
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