4 Tips for Reducing Your Cost Per Lead (CPL) on Facebook
Social media marketing is an important strategy to include in your digital marketing plan. With social sites, like Facebook, it is easier than ever to connect with valuable leads through Facebook ads. When you run a Facebook ad, it is important that you keep the cost per lead (CPL) low to help your business earn the highest possible ROI.
On this page, we’ll discuss the basics of Facebook lead ads and four tips to help you lower your CPL. If you need help creating effective Facebook ads, call us today at 888-601-5359 to speak with a strategist.
How do Facebook lead ads work?
When you use Facebook as part of your social media marketing campaign, you can run paid advertisements to reach interested leads. These lead ads help you capture interested leads and move them through the sales funnel.
Lead ads focus on capturing important user information so that you can contact leads later. They typically advertise newsletters, ebooks, getting a price quote, signing up for emails, or signing up for offers. The goal is to get your audience to fill out the contact form.
The unique thing about Facebook lead ads is that the information is prefilled out in the forms for your audience. These ads take information that a user already shares on their Facebook profile and inputs it into the form. This makes it easy and hassle-free for your audience to fill out the form.
Your audience also fills out this form without having to leave Facebook.
Previously, ads would take your audience away from their feed, which was bothersome to people. Now, these Facebook ads trigger pop-up boxes that enable your audience to fill out the required information, submit it, and go back to their feeds.
It only takes a few taps for your audience to fill out the information on these ads. If they already share most of the information in your form on Facebook, it makes the process even quicker. These forms are mobile-friendly, too.
Facebook lead ads are a great way to capture interested leads and get them to convert. You will need to invest money into running these ads, but they can have a great return for your business if you do it right.
What is CPL?
When you run your Facebook ad campaign, it is important that you keep you CPL low. You want to spend the least amount of money to capture leads but gain the biggest return.
For reference, your CPL is calculated by the total campaign spend divided by the number of leads you obtain from that campaign. So, if you spent $1,000 and got 50 new leads, your CPL is $20.
Facebook ads are a great opportunity for your business to gain new leads, but if you want to get a maximum return, you need to keep your CPL low. So, how can you achieve this?
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4 tips to help you lower your CPL
Your Facebook advertising campaign will work better for your business if you keep your CPL low. Here are a few tips to help you lower the cost of your leads.
1. Target a more specific audience
When you create Facebook ads, you must set a target audience. These are the people who are most interested in your products or services. You set your target audience to help your business connect with the most qualified leads.
Your business may have multiple types of people that fit your target audience. If you have products or services that appeal to a wide range of people, you may try to set a wide target audience to try and reach these people.
The issue with this is the level of competition. When you have a broader target audience, you have more competition. Your competitors will try to run ads for the same group of people.
It makes it challenging for you to reach your audience when there is a high level of competition. To avoid the high competition, you need to focus on a specific group of people in your target audience.
When you narrow your focus, there is less competition to try and reach that specific group of people. This ensures that more leads will see your ad and it will keep your costs lower. This will help you reduce your CPL.
There are numerous ways that you can target people in your audience. Facebook enables you to target your audience based on demographic information, like age, gender, or education. These are just a few of the many demographic categories you can use to target your audience.
Facebook also allows you to target your audience by their interests, behaviors, and connections. This makes it flexible for you to choose how you want to target your audience. You can use these categories to help you target more specific users.
2. Conduct A/B testing on your ads
If you’re going to put a Facebook ad out for your audience, you need to put out the best ad copy for them. A/B testing will help you figure out which ad is the most effective for your audience.
To conduct A/B testing, also known as split testing, you’ll need to go to the Ads Manager to conduct a split test. You can run various split tests to help you produce the best ad for your campaign.
When you conduct A/B testing, you make small changes to your ad to see how they affect your ad’s performance. It’s a great way to help you produce an ad that generates more interest and more clicks. A/B testing helps you put out an ad that catches your audience’s interest and gets them to engage with your ad.
If your ad is more appealing to your audience, it will lead to more interaction with your ad. This means that you will capture more interested leads, which will help you lower your CPL. You’ll invest your money in an ad that is more effective at attracting your audience.
3. Prevent ad fatigue
When you run an advertising campaign, there’s a chance that your audience will see your ad more than once. If they start to see your ad too often, they will become tired of it. This will lead to ad fatigue, which is detrimental to your Facebook ad campaign.
Your audience will start to ignore your ad if they see it too often. More ad exposure leads to less interest in your ad. In fact, your clickthrough rate (CTR) drops as the frequency rate increases.
So, how can you prevent ad fatigue?
If you want to prevent ad fatigue, you need to limit how often your audience sees your ad. When your clickthrough rate (CTR) drops, you’ll know that your ad is becoming ineffective and needs to be replaced. It is important that you have an alternate version on your ad on deck to replace your current ad.
In your new ad, you’ll want to rotate variables around to make it different than your previous ad copy. This will help you send the same message to your audience while preventing them from experiencing ad fatigue.
By preventing ad fatigue, you’ll engage more leads and keep them interested in your ad. As long as you pay a set amount for your ads, you will help decrease your CPL because you will earn more leads.
4. Use videos in your Facebook ads
Videos are a great way to create an effective Facebook ad that garners your audience’s interest. Many people love to watch videos, and it piques their interest when they see a video on their timeline.
When you create a video ad, you keep your audience’s attention. They watch your video and learn about your business. It’s a great opportunity for you to show your audience why they should act on your offer.
While photo ads can work well, video ads take your campaign to another level. In fact, videos improve conversions by 86%. You have the potential to get more leads to convert simply by including a video in your ad.
In many cases, you will save money by choosing a video ad over a photo ad. Your audience is more likely to interact with a video than a photo.
When you run Facebook ads, the cost you pay per click (CPC) is determined by your clickthrough rate (CTR). If you have a high CTR, you’ll pay less per click, but a low CTR will mean a higher cost per lead. By using video, you’ll capture more leads and increase your CTR, which will lead to a lower CPL.
If you ran just a photo ad, you might have to run multiple ads to engage your audience. This will lead to more costs for your business. By using a video ad, you can prevent your business from having to run multiple campaigns to reach your audience and help decrease your CPL for your campaign.
WebFX can help you create an effective Facebook ad campaign
When you use Facebook to run ads, you open the opportunity for your business to connect with valuable leads. You can obtain more leads that turn into conversions. Our team at WebFX knows how to create campaigns that drive leads and keep your CPL low.
We’re a full-service digital marketing company that specializes in social media marketing. Our award-winning team of 150+ experts has years of experience creating effective Facebook ads. We know how to create ads that capture leads and help your business grow.
When you partner with a social media marketing company, it’s important that you choose a partner that drives results. To date, our team at WebFX has driven over $1 billion in sales and over 3 million leads for our clients. When you partner with us, we guarantee that we will put your campaign’s success first.
If you want to know what it’s like to partner with us, check out our client testimonials! We have over 420 client testimonials from a variety of industries. Check them out to see what it’s like to partner with a social media expert like WebFX!
Reduce your CPL on Facebook today
Our team at WebFX can help you reduce your CPL and earn revenue from your Facebook ads. If you’re ready to start seeing these results, contact us online or call us today at 888-601-5359 to speak with a strategist.
We look forward to taking your business to new heights!
Call 888.449.3239 or contact us online today to see how WebFX can improve your online performance.