Facebook Lead Ads: How To Use Them & Why Part 1

Could your business use a steady source of affordable leads? Obviously the answer is most likely yes, that’s what we’re all trying to get. You may have been trying to optimize your ads (targeting, copy, settings, etc) or your landing page from a CRO perspective, but is there anything else you can do?

Doing what you can to further improve your ad strategy and your landing pages is absolutely something you should do, it’s going to be seriously important to your continued success - BUT testing this process against Lead Ads and evaluating the optimal journey to give leads you capture from FB Lead Ads can be just as useful. We’re going to talk about both of these, but will start today with just testing Lead Ads against your website-driving ads.

When you’re running Facebook ads (or other channels, but let’s focus on FB) you’ll have a roughly 1% - 2% click-through rate, then about the same lead conversion rate on your website. Let’s say you spent $1,000 and generated 100,000 impressions which would translate into 1,000 clicks (1%) and then roughly 10 conversions (1%). That lead cost may work for your business, but what if we could run a test to eliminate one of those steps? If you are tracking your cost per lead through your website it should be a simple process to run this test.

Create your Facebook Lead Ads campaign and split your ad budget between Lead Ads and website driving ads, paying close attention to the cost per conversion for each source during the testing period. This by itself is an interesting test, but taking it one step further we can evaluate the quality of the new source (lead ads) and call this an effective cost-per-lead. Generally I expect Lead Ads driven leads to be lower in quality because the threshold for action, the disruption to someone’s routine is less (they don’t have to leave FB) so these will often be higher funnel leads. If you’re properly measuring the conversion rate from lead to sale focus on the cost per sale from FB Lead Ads leads vs website leads. This is how you close the loop and understand the value of Lead Ads, from here we can take a look at improving the Lead Ads journey and understanding what part Lead Ads should play in your client acquisition.

Cannabis Digital Marketing

I recently dug into the world of cannabis digital marketing and advertising, it's something I'm incredibly excited about. I spoke to several great agencies like Wick & Mortar about the work they're doing for their clients & to brands in Cannabis like Cura, with their line of Select Oil products & found out that it's a sophisticated content marketing space with little opportunity to advertise currently. Facebook, AdWords, and other large ad channels do not allow any mention of cannabis & even sending traffic to a landing page on the subject is grounds for immediate ad disapproval. As a marketer, that's tough. There are opportunities though! Check out my article published here at Marketing Land.

Should I Work With A Digital Agency?

That is a great question. Unfortunately I can't really answer whether YOU should work with an agency, but I can give you some good general guidelines. The problem with most agencies is that they want to keep you around as long as possible, makes sense doesn't it? Oddly we are considering an exit clause that incentives us to hit your goals sooner so you can move on to bigger and better things, still working that over internally. But, that's not why you're here. The reality of your growth trajectory is that there is a timeline for how this should work. You're about to get some great information we have acquired over the years.

  1. Just starting your marketing - Handle it internally
    1. Read articles and how-to's build your first AdWords campaign and start testing, or have Gary the intern do it.
  2. Spending $1,000-$2,000 per month
    1. If Gary hasn't gotten better by now it may be time to hire a freelancer or very small agency that charges you a percentage of spend, or low minimum rate. Large agencies will not work with a client this small, and hourly rate agencies will end up charging you a somewhat unreasonable % of spend at this point. Although, we would too, it's hard to effectively manage this much spend.
  3. Spending $2,000-$19,000 per month
    1. Ok, now we are talking. You're officially large enough to be a great client for an agency to work with and you're spending enough to really get great results. You're still not quite hiring a full-time person.
  4. Spending $20,000-$30,000 per month
    1. Yes, there is very little difference between $19k & $20k, thanks a lot. But at this point you'd likely be paying an agency 10%-15% of $20,000-$30,000 and investing roughly half of what a full-time junior advertiser would cost you. It's time to at least consider a hire, talk to your agency about consulting relationships and training your hire. We will actually even help you make the hire like we are a recruiting firm, which is pretty cool.

Most business will not reach an advertising investment beyond this, but if you do you will often need to consider a hybrid model of having a Full-Time Senior (3-6 years) Ad Manager AND an agency that assists in strategy development and execution. Once you are investing significantly in digital advertising you will likely find that agencies that can deliver with the speed you are looking for are few and far between. Nobody will know your company better than your own team, working with an agency as a trusted partner can become the best model when you reach the upper echelons of advertising. If you have any questions about hiring agencies or growth and the fun problems that come along with it...get in touch!