Monday, January 27, 2014

Facebook Revamps Ads to Compete With Google

Last June, Facebook released a tracking pixel, a snippet of code that allows advertisers to track customers who come to their websites from Facebook ads. For Amy Norman, co-chief executive officer of Little Passports, the pixel was a game-changer.

Ms. Norman, whose San Francisco company sends children a monthly package to introduce them to geography and history, began testing ads on Facebook to see which ones brought in more customers. In June, Little Passports spent about $30,000 on Facebook ads and the company’s revenue for the month was about $130,000. By the end of the year, the company’s monthly advertising spending on Facebook had grown to as much as $150,000 and its revenue for December was $700,000.

Ms. Norman acknowledged that $150,000 was a huge amount of money to spend on advertising in a month for a company with annual revenue of just under $2 million, but she said “we also tripled our customer base in six months.”

More from the New York Times.

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