Two Meta ad campaigns generated 2,071 leads at $2.66 each. The retargeting campaign had higher CPM but lower cost per lead because its link click-through rate was much stronger. To cut CPL, improve your ad creative to boost CTR, and don't change campaigns that are already working.
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If you are running ads, did you know that there are certain metric points on the backend of the Ads Manager that will tell you exactly what changes you need to make in order to bring your cost per lead down? I call these power optimizations. Let's take a look at 2 campaigns that I just ran this week for 10 days. They generated 2,071 leads at $2.66, and it's a great example of how these metrics interact with each other and how they greatly influence your cost per lead. Let's go. All right, so we are looking at 2 different campaigns. So there are various ad sets that are inside. This one right here is a cold campaign. So that meant that we were targeting audiences that never have heard of this client. This one right here was a retargeting campaign for individuals that interacted with them or their ads and hadn't converted, so they got retargeted. Now this campaign is set up with a lifetime budget, which is best whenever you either have a limited time offer or you're running something like perhaps 65 leads and you're targeting specific birthday and so on. And then this is our results. Now what's interesting here is you can see that this was our cold cost per lead and our warm cost per lead was actually cheaper. But here's the interesting thing here. The way that Facebook actually charges you is here. It's through the CPM. It's the price that they charge you to get 1,000 eyeballs on your ads. You can see that here, our warm and retarget ads, they were charging us so much more money to serve this audience versus our cold audience. They were not charging us too much to get in front of individuals. Why is this? Well, because this audience is much smaller, so it is such a smaller group for Facebook to be able to target that there's typically going to be a premium that is attached to running an audience that is smaller. So that's why this price is so much more than this one, but yet this cost per lead is still lower than this cost per lead. And let me show you why. We're gonna slide this down. This metric right here, the link click-through rate, lets me know if my ads creatives were actually getting individuals to click on it. And you can see how extremely high it is with individuals that had interacted with this brand before that we were retargeting with an offer, retargeting with an ad, because so many more of those 1,000 people that we showed the ads to clicked, it made our cost per lead be lower. Our cold audiences that had never heard of us, Even though they were charging us less to serve, we had a lower link click-through rate. So if I really wanted to reduce this cost per lead, what I would do is go in, look at all of the different ad creatives that I have, and try to increase that link click-through rate. But here's the number one rule of running Facebook ads: if you are happy with your results, do not touch anything. Even if you see certain metrics that you know you could possibly improve upon, if you are happy with the quality of leads, the price that you're paying per lead, Leave it alone. It's not worth messing with it. Want to learn more about marketing and running ads for your business? Follow for more tips.
