In this article we look to explore the multiple ways in which you can reduce your cost per lead on Facebook ads.
Facebook Ads is a cost-effective way to generate leads for your business, but only if you know how to optimize your campaigns correctly.
It’s no secret that Facebook ad prices are increasing.
Every day, more and more people and businesses are realising and taking advantage of the modern day style of marketing.
Advertising on social media platforms is now a fundamental of any businesses marketing campaigns.
However, the increase in volume comes with an increase in price.
By following the tips below, you can make sure that your cost per lead stays low, giving you the best return on investment possible.
Despite the level and volume of competition on the current market.
What Is Cost Per Lead ?
Cost per lead (CPL) is a pricing model in which advertisers pay for each lead that they receive.
A lead can be defined as contact information that has been submitted by a potential customer in response to an advertisement.
This contact information can include an email address, phone number, or even just a name.
In lead generation marketing, fundamentally, cost per lead is the most important metric you will refer to.
It’s a direct reference that tells both you and or the client, how much it costs per lead that is generated.
This is a very useful piece of information as you will be able to take this and and compare both the market value and previous price you were paying.
Armed with this data, you can make more informed decisions about your cost per lead and where you want to price yourself in the market.
Factors That Affect Cost Per Lead
Cost per lead varies drastically, all depending on what industry your business is based in.
A common theme we often see is:
The higher ticket the product or service you provide, the more expensive the cost per lead.
However, there will always be exceptions.
Before we go any further, it’s important that we understand factors that affect cost per lead.
When you have a strong grasp of this, you will be in a much better position to make well informed decisions about reducing your cost.
Here are some factors that will affect cost per lead:
- The uniqueness of your product or service
- The level of competition in your industry
- Your target audience
- Location you’re targeting
- Your budget
- The product or service you’re selling
- Your unique selling point
Your cost per lead WILL vary depending on not only the factors above but much much more.
It’s essential that you utilise fully the tools you have knowledge and access to drive down the price you’re paying per lead.
This is why it’s important to understand which category your business falls into and what cost you should realistically be paying.
4 Ways You Can Reduce Your Cost Per Lead
Now that we’ve answered the question: “what is cost per lead?” and understand the underlying factors.
It’s time to look at ways you can reduce your costs and free up margin:
1. Improve Your Quality Score
One way to reduce your cost per lead on Facebook Ads is by improving your quality score.
Quality score is a metric used by Facebook (and other advertising platforms) to determine how relevant and trustworthy your ad is.
The better your quality score, the less you’ll have to pay for your ads.
There are a few things you can do to improve your quality score, such as:
- Making sure your ad copy is relevant to your landing page
- Using high-quality images
- Creating a catchy headline
2. Target A More Specific Audience
Another way to reduce your cost per lead is by targeting a more specific audience.
The more targeted your audience, the less you’ll have to pay for your ads.
There are a few ways you can target a more specific audience, such as
- Creating custom audiences
- Using lookalike audiences
- Using interests and behaviours to target your audience
When you narrow your target audience, you’ll have less competition to try and appeal to that specific group of people.
This helps ensue more people who would potentially qualify as a lead will see your ads, keeping your costs lower.
This will assist you in lowering your CPL.
There are many methods to reach out to your targeted audience.
You may target your audience according to demographics, like age, gender, or education.
These are just a few of the many demographic categories you have available at your fingertips.
3. Test Different Ad Types
Testing different ad types is a great way to find what works best for your business and helps to reduce your cost per lead.
There are a few different ad types that you can test, such as:
- Video ads
- Carousel ads
- Lead ads
It’s essential that you test a wide range of fields.
An easy place for you to start is to A/B test video ads.
Videos are an excellent method to create a successful Facebook ad that grasp your audience’s attention.
Many people enjoy watching short clips, and seeing one on their timeline sparks their interest.
While photo ads can work well, video ads provide another tool you may use to better engage with your audience.
In fact, videos increase conversions by 86 percent, according to one study.
You have the potential to get more leads to convert simply by including a video in your ad.
4. Optimise Your Landing Page
Your landing page is just as important as your ad when it comes to cost per lead.
If your landing page is not relevant or trustworthy, people will be less likely to convert and you’ll end up paying more for your leads.
This is because Facebook will understand that when people engage with your ad they don’t convert.
There are a few things you can do to optimise your landing page.
Making sure your landing page is relevant to your ad to ensure the user journey is sooth and not disruptive.
You should also make sure your landing page is only focused on one goal: generating leads.
Every component on the page should aid in achieving that objective.
If you try to accomplish numerous things on a landing page, your conversion rate will plummet.
People’s attention and interest is difficult to obtain.
So once you have it ensure you’re making full use of it.
By implementing these tips, you’ll be able to reduce your cost and get the most out of your Facebook Ads campaign.
Steps To Take
After reading this article about the ways you can reduce your cost per lead on Facebook ads.
You should now not only have a better understanding, but a true grasp for the importance of cost per lead.
If you’re someone who wants to lower their cost per lead and take there business to the next level.
We specialise in generating leads for clients, at a price well below industry standard.
Regardless of the field.
If you’ve enjoyed reading this article, you may also enjoy reading ‘Using Facebook for Lead Generation‘.