Yuma 4×4

Media and Communications

How much do Facebook Ads cost?

How much do Facebook Ads cost?

-: How long is a piece of string? How much do Facebook ad costs really does depend. I mean, you could spend three pound and get a customer; or you could spend three million pounds and get lots of customers. And perhaps the best way to think about it is this. Facebook is like a supermarket for leads, and you can go into that supermarket with your trolley; and you can choose how many you want, and you put them in your trolley. And then, of course, you have to go through checkout and pay for them; and, of course, what you pay depends on how many you’ve got in your trolley. It’s not a perfect analogy; but, broadly speaking, it ain’t bad. So the starting point for you is to work out, well, how many leads do you actually want. Because the more leads you want, the more you’ll pay in total; although the cost per lead will, is likely to sit somewhere in the range of between two pounds and 10 pounds a lead. And that will depend on the industry, the sector, that you’re in and a myriad of other factors; and it is entirely possible that your business, for the leads that you require, fall outside of that range. So I’m not promising that you get leads that are between two and ten pounds, but I am saying that’s a good rule of thumb. Where we operate, certainly in our own business, in that range; and most of our campaigns are operating, you know, around the two to three pound a lead mark, which works very well for us. We bring in a hundred leads; it costs us 300 pounds, say. We’re able to convert on those hundred leads. We can convert 10, 15, sometimes 20 of those people into paying customers. We get a very good return on our investment in Facebook lead ads, and one of the first things we’ll do on your setup call is we’ll go through with you the numbers in your business. It will depend on how much your customers are gonna spend, you know, perhaps what your margins are, what you can afford to spend to get a customer, and how many leads you’re likely to need because not every lead will turn into a customer, to be clear. And your ability to handle the leads that you get effectively will determine how many leads you need to get a customer. So if you need 10 leads to get a customer and you’re paying two pound per lead, then it’s costing you 20 pounds, two pound times 10, 20 pounds to get a customer through Facebook ads. Now that may or may not be a good number depending on what the profitability and margins are in your business. We’ve pulled together an ad spend calculator, which is fairly straightforward to use below; so you can utilise that and work out how much you could be spending on Facebook ads based on the number of leads that you want. Just to be clear, it’s just to give you a guide. It’s there to give you an indication of your likely spend based on the number of leads that you want. One other thing I will say at this point is that when you’re in the test cycle for any campaign, and this is the first two or three weeks of the campaign, you do need to spend a couple of hundred pounds to run that test effectively. In truth, something close to 300 pounds would be better. You’ll get a more robust test; but we’ll spread that money, that 200 pounds or so, across 20 or 25 different ads. So it’s kind of only like 10 pounds an ad, and we’ll see which ones are getting the best clicks and the best conversions into leads. We then hone that down during the test cycle; and beyond the test cycle, we then spend all your money on the two or three ads that have been proven to convert best into leads for you. So once you move out of the test cycle, what happens is your cost per lead typically comes down and the number of leads that you get goes up. But if you try and run a test cycle with a smaller budget than a couple of hundred pounds, then you’re forced into making compromises; and compromises aren’t good.

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