If your company needs strong leads to thrive, I know you’re going to love these Facebook Lead Gen stats.
This highly effective ad type has completely transformed how I support my clients.
I began testing Facebook Lead Gen Ads in early 2017 with one of my Real Estate clients. It took less than a week to conclude that I’d be reallocating a huge percent of their budget into this ad type.
Goodbye clicks-to-site ads and landing pages, hello Lead Gen.
And listen, I was not messing around.
Thanks to their immediate (and measurable) ROI, clients feel confident investing big dollars: I have gathered Facebook Lead Gen stats on over $60,000 worth of ad spend in 2017.
Why Facebook Lead Gen Ads Work
Before we dig into the Facebook Lead Gen Stats, let’s break down why this ad type is so powerful.
- You can customize your lead gen form to obtain any kind of prospect info you need such as email, phone number, and so much more.
- The forms are pre-filled with the Facebook User’s info, so they simply need to click “submit” to send it to you (vs. the tedious process we used to use: Click a link > Visit a landing page > Type contact info into multiple fields > Click submit)
- Facebook Ads Manager allows advertisers to be incredibly specific with their targeting so the ads are served to people most likely to convert.
- Leads can be automatically entered into your CRM in real time, so the sales team can work them with no interruption between acquisition and follow up.
- You can reply to leads with a Chat Bot, but boy if that isn’t an entirely separate blog! More on that to come.
I could keep going but you get the picture, so let’s jump into these juicy stats.
Facebook Lead Gen Stats
First, a look at the most current Cost Per Lead (CPL) by Industry data I could find, care of SurveyAnyplace.com:
Social media lead gen is sitting at an average of $27, but that varies widely by industry of course.
Interestingly, real estate isn’t on this chart. Since a big chunk of my data is in the real estate industry, here’s a specific look at average CPL from Parkbench.com:
What this tells us is:
Check. This. Out.
Real Estate Campaign One: Average CPL $9.76
This client was advertising unimproved lots in the North Carolina mountains. Talk about specific!
Campaign Investment: $3,000.00 over three months
- Number of Leads Generated: 308
- Number of Sales: 2
- Average Sales Price: $307,090.50
- One sale for every 164 leads
- Actual Cost Per Acquisition (CPA): $1,600.64
- The average commission is 3% making average profit margin $7,610.
If they paid the average $37 CPL, their profit would be only ~$3,140!
Real Estate Campaign Two: Average CPL $7.31
This client sells homes in a popular South Carolina Country Club Community.
Campaign Investment: $1,800.00 over six weeks (test)
- Number of Leads Generated: 246
- Number of Sales: 1
- Average Sales Price: $460,000
- One sale for every 246 leads (I expect this to decrease dramatically over time)
- Actual Cost Per Acquisition (CPA): $1,800
- The average commission is 3% making average profit margin $12,000.
If they paid the average $37 CPL, their profit would be only ~$4,700!
Real Estate Campaign Three: Average CPL $6.07
This client sells factional ownership (time share) condos in Breckenridge, CO.
Campaign Investment: $9,000.00 over three months
- Number of Leads Generated: 1,344
- Number of Sales: 8
- Average Sales Price: $42,000
- One sale for every 168 leads
- Actual Cost Per Acquisition (CPA): $1,019.76
- The average commission is 5% making average profit margin $1,080.
If they paid the average $37 CPL, they’d actually LOSE money!
Real Estate Campaign Four: Average CPL $11.95
This client sells large estates in an exclusive Denver suburb.
Campaign Investment: $18,000.00 over six months
- Number of Leads Generated: 1,506
- Number of Sales: 8
- Average Sales Price: $924,670.50
- One sale for every 188 leads
- Actual Cost Per Acquisition (CPA): $2,256
- The average commission is 3% making average profit margin $25,000.
If they paid the average $37 CPL, their profit would be only ~$20,700!
We’re dangerously close to nerd overload, so let me stop here!
Most of my campaigns are in this industry. These examples provide a thorough picture, so let’s break it down and then move on to other industries.
Facebook Lead Gen Real Estate Average CPL should be NO HIGHER than $12, and significantly lower if you’re selling in an affordable, hot market.
I also have some insight for the health industry as well as the insurance industry, but it’s not quite as deep. I will update this article in six months when I have more detail.
Employment Agency Campaign: Average CPL $9.11
This client is a medical staffing agency so it’s very niche. Since there isn’t much data to be found when it comes to Facebook Lead Gen stats, I still think it’s worth sharing.
Campaign Investment: $2,500.00 over eight months
- Number of Leads Generated: 274
- Number of Placements: 6
- One placement for every 46 leads
- Actual Cost Per Acquisition (CPA): $417
- The average commission is $4,500 making average profit margin $4,083
Insurance Consultant Campaign: Average CPL $21.97.
This client is a public adjuster. Their campaign was aimed at people in the midst of a homeowner’s insurance claim. So…super niche! They told me they paid ~$100 per lead prior to using Facebook Lead Gen Ads.
Campaign Investment: $8,000.00 over eight months
- Number of Leads Generated: 368
- Number of Claims: 3
- One claim for every 122 leads
- Actual Cost Per Acquisition (CPA): $2,684
- The claim commission ranges significantly from ~$5,000 making minimum profit margin ~$2,500
Even without hands-on experience in all industries, I feel comfortable saying this:
A simple form + in-app convenience + robust ad targeting = a massive uptick in qualified leads.
It’s no secret I am a fan of Facebook’s incredible marketing tools and constant evolution. They are making it so easy (and fun) to crush your industry’s average Cost Per Lead.
I hope the above stats prove valuable in your future budgeting and strategy discussions. To recap:
- Average CPL can be cut in half no matter your industry.
- When using Facebook Lead Gen ads to their full capacity, you should see a 75% reduction in CPL. Full capacity means custom audiences, A/B splitting, video over photos and a slew of other techniques.
Do you have any insight on Facebook Lead Gen stats? I’d love to hear them!
Find me @bellestrategies around the web, or comment below.