Facebook's pixel is a tool that allows e-commerce retailers to link user actions on their site to ad interactions such as views and clicks. This allows Facebook not only to report on conversions but also to optimise ad targeting to users that are more likely to convert.
As a result of the changing privacy landscape, however, the pixel's ability to feedback these events has diminished. To counteract some of this, Facebook introduced the 'Facebook conversions API'
The Facebook conversions API works alongside the Facebook pixel to send purchase and other important events on your e-commerce site back to Facebook. The increased number and quality of events from both sources results in better attribution and campaign performance.
The pixel works by sending events from the users browser or app, which is susceptible to ad blockers or disabled tracking. The conversions API works differently, by sending events from your database.
Events data, such as when a purchase happens on your site, is needed for: ad targeting (like retargeting or excluding people who have already purchased from your prospecting campaigns), reporting, insights and most importantly algorithmic optimisation. The more purchase data available, the lower acquisition costs you will be able to achieve.
The pixel and the conversions API should be used together. We recommend installing the Facebook pixel first, and then setting up the conversions API. When you install both the pixel and the conversions API, you maximise your ability to track and target a converting customer. Duplicates from both methods are handled by Facebook.
There are 2 options to set up the conversions API, either manually (which requires some technical knowledge) or using one of Facebook's partner integrations. If you have a Shopify e-commerce site for example, you can quickly and easily set it up using these instructions.
If you are planning on using Facebook to increase your DTC sales, remember to install both the pixel and conversions API before launching your first campaign.
