Running Facebook ads for your business? Then you surely know how to set up the budget.
But, are you sure your money is well spent? Or are you paying a higher price for each lead?
Walk through this piece of advice as I share why a good cost per lead for Facebook ads cannot fit all.
Cost per lead is the amount you pay Facebook for each lead it generates for your business.
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Calculate your total marketing spend
Calculate the total no. of new leads generated
Divide your marketing spend by the number of leads generated
In other words,
If you are a travel agency running a lead generation campaign. And your objective is to promote a special offer for the season.
You invested $1000 in it for a month and you generated 100 leads.
Then, Cost per lead (CPL) = 1000/100 = $10
Number of leads 🢁 = Cost Per Lead 🢃
A good cost per lead (CPL) cannot be defined. Because every business differs in terms of
nature of business
So you can’t have a one-size-fits-all policy here. It will change with every business.
It ranges from $208 for the technology sector to $34 for the retail industry.
In order to decide on a good cost per lead (CPL), you must take into account the revenue you generated from each lead.
For example, you acquired a lead with a CPL of $10. Now there can be multiple outcomes post-conversion. The ticket size could be –
Above $50 = a great return on investment (ROI)
Ranges between $10 – $30 = a bad (or optimistically speaking, not very good) ROI
For this judgement about high cost per lead, you must answer the following questions :
Is your Target audience properly defined?
Is your Campaign objective correctly set?
Is your Lead form not pre-populated?
Are you asking the lead to fill up too much information?
Is your content lucrative enough?
Is your Facebook lead generation form aligned with the objective of your lead generation campaign?
Do you need to edit your ad?
The following techniques help you lower the cost per lead for Facebook ads:
Use lead generation objective with Facebook’s built-in lead form: The Lead generation form instantly pops up with pre-populated data. People tend to fill up such forms, thus increasing lead generation.
Keep your forms short:People prefer to fill up fewer data thereby abandoning length forms.
Set up your campaign objective clearly: Show your ad to the right target audience and generate meaningful leads. This helps save money!
Define your audience correctly: You must determine your audience based on the demographics collected. This lowers your CPL. For a generic audience, the probability of lead generation is less and hence a higher CPL. On the contrary, for a specific audience, CPL will be much lower.
Use lookalike audience feature: This helps create new audiences matching your target audience for FREE.
Overlook your Ad placements: Say, for example, if your Instagram ad is not giving any returns, then it is advisable to remove such placements.
Boost meaningful posts: Boost your posts for branding and they will reach the followers and their connections. This drives more audience.
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There are many ways to reduce the cost per lead, but what about the costs and time incurred post lead generation? Once you have leads, you will need to feed this data to other applications, synchronize your entire business process, and much more.
That definitely sounds like a lot of work ! Besides, you need a dedicated person to handle all this and that increases the cost further.
Just skip all the hassles and switch to automation. Don’t know what an automation tool is? Well, it’s a gift from the heavens (delivered by humans)!
It is a tool that helps you accomplish your routine tasks with a single click. Tasks that are otherwise performed manually by engaging personnel, time and therefore money.
You can easily accomplish the following routine tasks without any manual efforts :
create an excel sheet,
send an email,
create a card in Trello,
create a response in Google form,
create a post on a Facebook page,
create an event in google calendar, and much more!
Integrately is an automation tool that lets you automate your Facebook Lead Ads in just 1 click. That too with more than 600+ apps.
Spend only a few minutes initially and be carefree afterward. No technical skills are required!
Save yourself lots of time & money.
Just find your automation and activate it.
Average Cost Per Lead on Facebook 2021 ranged from $31 for NonProfits to $208 for IT/Computer and Technical Services.
The average cost per lead is affected by 3 Factors I.T.C
A good cost per click (CPC) is determined by the target return on investment (ROI). For most businesses, a 20% cost-per-acquisition (CPA), or 5:1 ratio of revenue to ad cost, is acceptable.
A good cost per like on Facebook averages around $1.07
It represents the average price paid for each like on the Facebook Page.
You can assess cost per like using Facebook Cost per action bidding strategy. But, the method is neither clear nor much used.
You need to decide for yourself – how likely it is for a fan liking your page to take the desired actions. This will help you evaluate your cost per like.