What is a good cost per lead for Facebook Ads?
A good cost per lead for Facebook Ads depends on the business and the industry that you’re in. It also depends on the offer that you are advertising, just as much as it depends on how much an individual customer is going to be worth to you over the lifetime of their business – there are all sorts of variables at play here.
What I can tell you is that we’ve seen cost per lead as low as £0.50 and I’ve seen it as high as £100. Just to be clear, even at £100, a lead for the business that we were dealing with there was still working really well because they were converting one in five leads. In essence, it cost £500 to get a customer. That was a particularly big-ticket industry, a business where their customer transaction (on the first transaction) was several thousands of pounds, so it worked well at that level.
Obviously, if you’re running a business where your sales were measured in a £50 or £100 sale to the customer, then you are not going to want to pay £500 to get a customer; that would be madness. In reality, your cost per lead for Facebook Ads really does depend on the industry that you are in, the sector and the relevant numbers in your business.
What I can say, is that for many businesses, we are able to generate leads at a cost of between £2–£10. That’s a good, middling range for you to start to think about. Now it may be that we can do it a bit cheaper in your sector, it might be that it costs slightly more in your industry. But that £2–£10 range is a good guideline.
We can talk over it more thoroughly on your setup call and certainly, we’ll learn a lot more during the test cycle for your first campaign. You will end up spending a couple of hundred pounds on your test cycle, but from that you’ll begin to learn and understand the likely levels of cost per lead that you’re going to have to spend in order to bring the flow of leads that you want. Getting into test phase moves your campaign from being a theoretical conversation to a very hard-nosed, factual, objective conversation, and increases the discussion about the viability of running Facebook Ads over the medium-term.