Facebook Ads Case Research study: A strategy that cut Cost Per Lead by 90.6% and increased CTR 9.3x.

Have you noticed how costly the Facebook advertisements ended up being compared to the good old days (till approx. Q2 of 2017)?

It is safe to say that every advertiser faces this concern nowadays-- the average expense per click (CPC) has actually increased substantially.

With this pattern, it is harder and harder to accomplish positive ROI on paid advertising. It is possible to enhance ROI with a number of optimization tactics. However the difficult fact is that a lot of projects that were successful a year ago, don't make financial sense anymore.

I was approached by a client who was struggling to keep their advertising profitable. Their break-even point for a cost-per-lead (CPL) of email signup was around $3.50. That was computed with the long term 3% typical click-through rate of their e-mail marketing.

As their CPL approached to over $3 in the second half of 2018, the ROI approached the break-even point. It was clear that business design could not handle even additional boost in advertising costs expected in Q4.

I pointed out numerous possible optimizations of the sales funnel and the backend to increase the overall conversion rate.

The main issue still stayed-- the cost of leads was too expensive.

The strategy that cut cost per lead by 90.6%.

The Facebook project produced leads (e-mail signups) for $3.11. The quality of the leads was consistently reducing due to bad open rates of the follow-up email campaigns.

This is how we went from $3.11 to $0.29 per lead:

1. Utilized "Messages" as the Objective in Facebook Advertising campaigns.
2. We sent visitors to our Facebook Messenger chatbot.
3. The users were then taken part in a conversational sales funnel within Messenger.

The epic advantages of changing to Send-to-Messenger Facebook campaign.

• Everybody who clicks our ad and who engages with our bot instantly becomes a customer. The subscribe ratio was approx. 98% ... The staying 2% didn't make it to the bot.
• To put this into viewpoint-- A typical landing page has a 2-- 10% conversion rate, indicating that 90-- 98% of clicks are lost forever. (Yes, a portion of them can be rescued by retargeting).
• We have the name of each contact. Their real names, tied to the Facebook profile. A growing number of users nowadays supply a different sign-up e-mail that they treat as non reusable. With messenger marketing, we can quickly ask for their genuine e-mail later on and continue the conversation there.
• The finest part: (A) the typical open ratio of Messenger campaign is regularly over 80%! and (B) the click-through ratio is over 20%.

Conclusion: Is Facebook Messenger the New Email?

Without a doubt, email is becoming less reliable for marketers. It is far from being dead yet, however it's not precisely the marketing channel it used to be.

Simply take a look at your inbox-- the number of emails you have subscribed to are going directly to trash without opening them? Precisely.

On the other hand, the Messenger is delivering the amazing results I have revealed above. The performance will level out with time eventually after everyone will sign up with the celebration. It is impossible to forecast the specific time frame when this will take place.

As of composing this post in April 2019, only a little percentage of business know the potential of messenger marketing.

I expect to see proportionally more advertisers in this space in the Q4 of 2019.

The wise companies who seriously consider beginning with messenger marketing this year will take pleasure in the advantages up until the market will end up being more saturated in 2020.

The post was first published on medium.com