A lead generation Facebook ad looks like this:
When someone clicks on apply now. A form pops up which look like this:
Out of all the objectives, lead generation is the best and the easiest. Why?
- It does not need a landing page/website.
- After generating leads online you can take them offline by calling them up.
- Facebook optimizes your ad by showing it to the people who are most likely to fill the lead form.
- Facebook fills the form automatically using the user’s profile info.
Every Facebook campaign has a budget. As soon as you start the campaign, Facebook will show your ad to target audience and will start generating leads.
But how to measure your campaign performance?
Obviously, your aim is to generate as many leads as possible after spending your budget. So the most important metric you want in a lead generation campaign is ‘cost per lead’. This metric varies a lot since it depends on a lot of factors. In this blog, I’ll give you a basic idea of cost per lead.
Let’s get started!
Or watch this video:
Cost Per Lead
After running a lead generation campaign, the cost per lead you might get may vary from ₹1 to ₹500. In this blog, you will get the ideal cost of different types of ads. Most blogs written on the same topic are not addressing this at all. So please be patient in understanding how to figure out cost per lead for your campaign and how to reduce it.
Why am I getting a cost per lead of ₹2 to ₹15?
If you are getting such a low cost per lead, it means you are providing something which is in high demand.
If you are giving something for free you will get a lead cost of ₹1 to ₹10 per lead. These results are obvious. Who doesn’t like free stuff?
If you are running a recruitment ad in India you will get ₹5 to ₹20 per lead. This is because of the huge demand for jobs in the Indian market. Other factors include Job position, Job description, Qualification Requirements and what not. You get the point.
I am considering these two as exceptions. In the rest of the blog, I will talk in the context of generating leads for sales.
Why am I getting a cost per lead of ₹20 to ₹40?
This is the average cost per lead on Facebook. You shouldn’t be worried about it at all. But if you want to cut it further refer to this article.
Why am I getting a cost per lead of ₹40 to ₹60?
This is a little higher than usual. Try to make the following edits:-
- Try showing the ad to a different audience. How? Figure out your customer’s journey and what they might be interested in, in different stages.
- Experiment with your call to action. Instead of trying to directly sell on Facebook, try to book a consulting call and let the sales team do the calling and conversion part.
- Write a long and verbal ad copy. Have a look at this:
Why am I getting a very high cost per lead of ₹100 or more?
Such a high cost means there is something definitely wrong. Let me give you some tips to figure out what might have gone wrong.
- Product-Market fit: You may have produced the best ad in the world but if your product/ services have no market, you’ll have a hard time getting a good response from Facebook. To understand more about this issue, just Google “Product-market fit” and you’ll get a ton of information.
- Targeting: Marketers call Facebook a hyper-targeting engine. It has more than 400 data points of users. You can basically target anyone you want. Target an audience only if they have shown interest to similar products. If you don’t know your target audience read the next point.
- Testing: Create multiple ad set and ads to figure out who is responding to which type of ads. Switch off the ads which give bad results.
- Ad consistency: Text, image, CTA and comments
How to cut my cost per lead further?
You might be thinking is there any way I can cut the cost per lead on my campaign? Well, there is one. It is possible by reducing the resistance in people’s mind. It is a big topic and I will cover it in future blogs.
How long will I keep getting leads from Facebook?
This is also quite a big topic. It will be covered later.