E-Commerce

Detailed Explanation of Facebook Ad “Pixel”

1.The Function of the Old Pixel

The old pixel contains long-term data on our website’s precise user demographics.

Here’s a simple example:

Imagine our website generates $100,000 in sales in a month. Assuming a normal conversion rate of 1.5%, we might have around 10,000 visitors, with 150 purchasing our products. The customer profiles of those who placed orders are recorded in the old pixel.

User profiles typically include details like gender, age, education, interests, preferred content, shopping habits, average order value, and more.

So, when our Facebook ads go live using the old pixel, Facebook knows to show our ads to a more targeted audience—those more likely to be interested in and purchase our products.

Without the old pixel, Facebook will display the ads based only on the audience tags you set when creating the ad. This audience might only have a 1% conversion rate, making it less precise. Consequently, you may have to spend three to ten times more on ads to get one sale.

If your audience tags are not precise, Facebook might show your ads to a completely irrelevant audience, increasing ad costs even further.

Now you understand the importance of the old pixel.

In simple terms:

The old pixel records the types of customer profiles that are likely to make a purchase on our website. When our Facebook ads use this data, they can be shown to these potential customers, significantly increasing the conversion rate.

Our students, even as beginners with no knowledge of Facebook ad optimization, achieve good results by relying solely on the old pixel.

However, learning Facebook ad optimization is essential. Proper optimization can reduce ad costs, increase sales, and improve ROI.

2.The old pixel is tied to product categories

Let’s assume I sell luxury goods, which might include:

Bags, shoes, hats, glasses, belts, watches, clothing, and more.

People who buy luxury bags are likely to buy luxury shoes, belts, and hats. So, even though these are different products, they share the same target audience. Typically, you can use one pixel for these categories.

However, if you sell tea, using a luxury goods pixel won’t work because the target audience for tea is completely different from that for luxury goods.

So, buying an old pixel doesn’t mean you can use it for all product categories.

A friend of mine, known as “Luxury Car Enthusiast Ji,” often posts on social media. He started by selling luxury cars but now also sells luxury watches, yachts, planes, and more.

This is because the customers who buy luxury cars, like a Rolls-Royce Cullinan, are also interested in luxury watches, yachts, and other high-end items.

Although these are different product categories, the consumer base remains the same: wealthy individuals.

If you only sell cars under $30,000, your customers likely have no interest in yachts or planes because the audience doesn’t match.

This is the basic concept of the old pixel. It’s straightforward to understand.

3.How Long and How Much to Spend on an Old Pixel for Best Results?

First, it’s essential to understand how an old pixel is developed.

Assume I want to start selling tea, and I don’t have an old pixel. So, I need to create a new pixel for this category.

Initially, the new pixel has no user data. When our Facebook ads go live, we must focus on setting the user interest tags correctly.

For example, most tea buyers are male, so we only target males when placing ads.

Additionally, tea drinkers are typically middle-aged or older, with few teenagers interested in tea. Therefore, we might set our age range to 30+.

Based on these characteristics, we set the interest tags and start running ads.

At this stage, our audience targeting is not precise. Therefore, in the early stages of running ads, we may incur higher ad costs, leading to losses initially.

Of course, a skilled Facebook ad optimizer can minimize these trial and error costs and create a more accurate pixel.

The trial and error cost could be several thousand to tens of thousands of dollars, which is normal.

It depends on the skill level of the Facebook ad optimizer. If you’re a complete novice, these trial and error costs will inevitably be higher.

Let’s say you spend $5,000 on ads and make $10,000 in sales on your website. The user profiles of these customers will be recorded in the old pixel.

As you run Facebook ads longer, with higher ad spend and more sales, the user profile data in the old pixel increases, improving its effectiveness.

If you spend only $1,000 on a new product category and make only a few sales, how much user profile data can you expect the old pixel to record?

The old pixels we authorize have been running since last year, with ad spend exceeding $100,000, recording a vast amount of user data.

This extensive data is why our students typically achieve good results quickly.

I think for many, joining our program is the best way to enter the Facebook paid traffic and cross-border e-commerce independent site space.

There are virtually no trial and error costs. With the old pixel in place, making sales and earning money is much easier. Start by profiting from the categories we are already working on, gradually mastering Facebook ad placement and optimization. Once you gain enough experience, you can explore new product categories.

Even if you join a company, it’s still a good choice. You can let the company bear the testing costs, gain Facebook optimization experience, and if the company finds a good product, you can also run it privately with friends.

In the advertising industry, it’s common knowledge that working for a company, spending the boss’s money, and increasing your optimization experience is an excellent way to grow.

author avatar
James Miller
My name is James Miller and I love finding ways to save, budget, and earn more.
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