How do you really know if the money you spend on ads is actually going to good use? You learn which numbers are important, then you figure out how to maximize your ROI based on those numbers.
In fact, your numbers are the ONLY way to tell if you are getting the most bang for your buck when it comes to running ads.
So, let’s chat about one of your most important numbers, your CPL (Cost Per Lead).
The Cost Per Lead is how much money you spend to acquire a new lead (opt-in) to your webinar, lead magnet, or list. It is how much you spend to bring someone new into your ecosystem.
Cost per lead is a metric you can easily get when you run conversion ads and lead generation ads through ads manager.
The Goal of CPL For Your Ads
Obviously the goal is to keep your CPL as low as possible which, if your funnel works, will boost your ROI massively. A low cost per lead + a high priced offer = more money in your pocket!
Average Cost Per Lead
It is TOTALLY possible to get leads for under $1, although the average varies depending on the industry. Recently I was able to get my client $0.24 cent leads during their launch…which is a VERY low CPL!
Want to know how? Here’s what I did, and how you can do the same:
1. Warm up the audience with FB Lives pre-launch
Every week prior to her launch, my client went live from her FB page, with lots of value to share. We then created ads from those lives to get more video views. This upped her know-like-trust factor and made it seem like she was everywhere. When the time came for people to opt-in, we had a warmed-up audience that was pretty large! This significantly lowered the cost of her lead generation ads. Additionally, running these “warm-up” ads didn’t cost much. The average was a few cents per view. It gave us some great audiences to target for the launch!
2. Make sure your targeting is detailed
Targeting is one of the trickiest parts of running ads. The right targeting can get you a massive ROI, but can also be hard to figure out. With this particular launch, I got SUPER specific in my targeting to ensure we connected with the right people. This targeting served our ads to people who were READY, which really lowered our CPL. We targeted all of her warm audiences very specifically, then were able to target some highly qualified lookalike audiences based on her warm leads. We also ran ads to some cold markets using influencer and behavioral targeting.
3. Keep Your Story and Feed ADS Separate
Sure, setting up different feed ads and story ads takes some extra time. But due to the nature of each format, it’s important that you make your content specific enough to fit the bill. People consume stories differently than they consume feed posts, so you want to consider that in your copy and visuals across all ad sets.
We created ads for each format and saw such a huge ROI because of that. Story ads perform REALLY well when done right, and can really support the feed ads when planned strategically. I know the temptation will be to just create one ad and run it everywhere, but I want to encourage you to create separate ads for each format.
The truth of the matter is ads are constantly changing. Is $.24 per lead common – no. But it’s entirely possible. When you know how to build your ads to work FOR each other, then you are more likely to see your CPL decrease. Many variables will affect your CPL (time of year, type of ad, industry, ad budget, organic use of the platform…and much more). This takes some time to figure out for each ad account, but when you do, you just keep running what works and watch those leads pore in for dirt cheap!
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