Domain Verification proves to Meta that a Business Manager controls a given domain, either via a DNS TXT record, an uploaded HTML file, or a meta tag on the site. Once verified, that business gets priority control over how the domain's 8 AEM conversion events are configured, which matters when multiple advertisers run traffic to the same domain.
For agencies managing landing pages on client-owned domains, domain verification needs to happen inside the client's Business Manager (or be delegated to the agency's) before campaigns can reliably report post-iOS14 conversion events; skipping this step is a common cause of underreported conversions.

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