What Are Facebook Lead Ads?
Before
we dive into the case studies, I want to clarify how Lead Ads work. For
most ads, when people click your ad, they are sent to your website
landing page. Then your landing page sells your product or service and
encourages prospects to take action like requesting a quote, scheduling
an appointment, signing up for a demo, etc.
Landing
pages work, don’t get me wrong. However, they do have a substantial
Achilles heel – most prospects do not know, like, or trust your
business or website. Often it’s your prospect’s first introduction to
your business so it’s a tall order to expect them to take action. This
is one of the key factors that hurt your website conversion rates.
But
with Facebook Lead Ads, you do not send prospects to your website.
Instead, your prospect stays on Facebook, which is a website they
already know, like, and trust!
Let
me walk through the steps so you see this in action:
1. First, your prospect would see your ad
and click on it. This is the same as a regular ad.
2. Second, your prospect will stay on
Facebook and see more information about your offer. This is the
critical difference between regular ads and Lead Ads because prospects
stay on the website they’re already familiar with.
3. Third, your prospect can complete a form
on Facebook and their information will be sent to your business.
As
you can imagine, the conversion rates using Lead Ads can be higher than
the conversion rates on your website landing pages. This isn’t due to
any fancy design or marketing tricks. This is just playing into the
laws of psychology – people are more likely to take action when the
process is easy (Lead Ads are scaled-down and simple pages) and when
they trust the website (Lead Ads keep the user on Facebook, which is a
website the user trusts).
Now
that you know what Lead Ads are it’s time to dive into the case
studies…
Case Study 1: Real Estate Investment Opportunities
The
first case study is for a company that wanted to drive leads for
overseas real estate investment opportunities. Before working with us,
this company had tested Facebook Ads but had not seen any success. In
fact, they weren’t convinced Facebook Ads were a viable option for
their business.
Here’s
what we did for this client:
·
We built 3 different campaigns: 1. Remarketing to previous
site visitors, 2. Demographic & Interest targeting, 3. Demographic
& Behavior targeting
·
Within the campaigns, we used 3 ad formats: Video, Image,
Carousel
·
We tested Lead Ads versus Standard Ads that drove
prospects to a landing page and we tested many different landing page
variations
In
the first two months, we only generated 2 leads and the cost per lead
was around $70. This was not a great start, but we saw signs of life
and we knew there was a lot of room to improve across the targeting,
ads, and landing pages.
We
continued to optimize the campaigns and eventually determined the Lead
Ads outperformed the Standard ads so we allocated all of the budget to
the Lead Ads campaigns. After a year of optimizing, we had a record
month with 145 leads and the cost per lead had dropped down to $6!
You’re
probably thinking, what about the less than $2 cost per lead that was
mentioned in the headline? Well, that brings us to case study number 2…
Case Study 2: Women’s Apparel E-Commerce
The
second case study is for a women’s apparel e-commerce business. In
addition to promoting and selling products, our client wanted to drive
more email newsletter signups. The goal was to acquire emails and then
use email marketing to sell products.
Here’s
what we did for this client:
·
We built a campaign targeting a Lookalike Audience from
previous purchasers.
·
Within the campaign, we used 3 ad formats: Video, Image,
Carousel
·
We tested Lead Ads only because we had data from our other
client that showed these would likely perform the best
For
this client, we saw success right away. In the first month, we
generated 83 leads with a cost per lead of just $1.88. The following
month, we generated 184 leads with a cost per lead of only $1.27!
Are Lead Ads Right For Your Business?
If
your goal is to generate leads, then I strongly recommend you test
Facebook Lead Ads. As highlighted in the first case study above,
success will likely not be instantaneous and you may have to work hard
for several months to a year to get your campaigns dialed in. But once
you do, then you’ll reap the rewards of lower cost leads for months and
years to come!
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