How does it work?
The pixel code is added to the <head></head> section of your website code. This means that each time your website is loaded by a user, the pixel is also loaded. The basic pixel codes captures a person visiting your website. However, you can set up different events. Events are like triggers to the pixel, they fire different actions by users. For example, you can record every person that initiates checkout in your e-shop. This in turn can be used to show retargeted ads only to the people who have already been on your site and initiated checkout.
Custom and lookalike audiences
Another powerful function of the pixel is building custom and lookalike audiences. The pixel allows you to build a list out of all the people who visit your website or perform a certain action there. Now you have a list of already interested people and you can choose to show ads only to them. An even better function is to build a lookalike audience based on these people. Facebook has the function to generate an audience that is as similar as possible to your custom audience. This means that while advertising to this audience, your ads are likely to generate more traffic as they are better targeted. However, don’t forget to still add interests to your targeting as your audience will be too broad without them.