How Facebook lead ads benefit your business
Facebook has been overlooked by traditional businesses and marketing strategies as a worthwhile place to spend money and effort when trying to a increase customer base or generate conversions. However global shifts like increasing mobile device access to internet and social media's growing place in society means that things like Facebook advertising are only going to become more lucrative as time goes on.
In 2017 over half of all web pages served came from mobile devices(1).
So the potential customers are there, however the key isn't just traffic, but conversions, and anyone who has done PPC ads knows that. The traditional risks of Facebook advertising such as the fact that people don't go to Facebook to shop and that in general conversions are lower on mobile devices than their counterpart are minimized by lead generation ads.
How are these risks minimized and how do lead ads work? The key is a low initial investment for potential customers.
Lead ads don't ask consumers to instantly become customers but simply peak their interests and offer them incentives (such as discounts/coupons or free consolations/estimates) in exchange for a small piece of information, which you can use to continue to market to them and create conversions down the line.
A study by Ladder revealed that the use of Facebook lead ads reduced their cost-per-lead by 80%(2)
These ads include a photo (or a short video) primarily demonstrating your companies values, ethics, and product/service. They also include a call to action(CTA) and a reward for anyone who answers a few questions. People who interact with the ad are then asked to fill out a small form (ie: phone number, email, zip code, ect...). Then they can claim their prize.
Even if they don't interact with the ad it implants a snapshot of your companies value's and work ethic in their mind and lets them fill in the blanks about how the product or service will fit into their life. An idea that comes from one's own mind is more convincing than one from an outside source, especially if it's goal seeking - such as selling a product or service.
Why is Facebook the optimal place for lead ads? The answer is "define and refine."
Facebook ability to allow you to define your target audience is exceptional because of the amount and type of data they collect from their users, and data they can't capture directly - they purchase from other companies(3). This mean's you can define your target market to a infinitely greater extent than you can with traditional advertising and even PPC.
Furthermore you can define multiple groups within the same marketing campaign and target specific ads to specific groups. Split testing, either through Facebook or other third party services, allow you to test all variations of your ad in terms of text, photos, videos, and CTA's.
So your cost-per-lead decreases the longer you run that ad campaign, meaning that your already specifically defined ads are being refined each time someone see's it.
What does all this add up too?
Because more than 50% of traffic on the web is mobile and immediate conversion is low, it's optimal for lead generation marketing due to the large amount of consumers and the low investment required by them. This effectively adds targeted and interested people to your pool of potential customers which you can market directly to.
It's still up to you to turn leads into conversions, so managing and using the data you capture is of paramount importance. But this strategy can be more effective, and often cheaper, than many other marketing approaches.
The internet and social media is here to stay as proven by the trends of the last decade. Ask yourself how long you plan to be doing business and then consider how you want to advertise.