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

Have you observed how expensive the Facebook ads ended up being compared to the good old days (up until approx. Q2 of 2017)?

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

With this trend, it is harder and harder to achieve positive ROI on paid advertising. It is possible to boost ROI with a number of optimization methods. But the tough fact is that too many projects that were successful a year back, don't make monetary sense anymore.

I was approached by a customer who was having a hard time to keep their marketing rewarding. Their break-even point for a cost-per-lead (CPL) of email signup was around $3.50. That was calculated with the long term 3% typical click-through rate of their e-mail marketing.

As their CPL sneaked up to over $3 in the 2nd half of 2018, the ROI approached the break-even point. It was clear that the business model might not manage even additional increase in marketing costs anticipated in Q4.

I explained a number of possible optimizations of the sales funnel and the backend to increase the total conversion rate.

The main issue still remained-- the expense of leads was expensive.

The technique that cut expense per lead by 90.6%.

The Facebook project produced leads (e-mail signups) for $3.11. The quality of the leads was regularly reducing due to poor open rates of the follow-up e-mail projects.

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

1. Used "Messages" as the Goal in Facebook Advertisements project.
2. We sent out visitors to our Facebook Messenger chatbot.
3. The users were then participated in a conversational sales funnel within Messenger.

The impressive benefits of switching to Send-to-Messenger Facebook campaign.

• Everybody who clicks our ad and who connects with our bot automatically ends up being a subscriber. The subscribe ratio was approx. 98% ... The staying 2% didn't make it to the bot.
• To put this into point of view-- An average landing page has a 2-- 10% conversion rate, suggesting that 90-- 98% of clicks are lost forever. (Yes, a piece of them can be saved by retargeting).
• We have the name of each contact. Their genuine names, tied to the Facebook profile. A growing number of users nowadays supply a separate sign-up email that they deal with as non reusable. With messenger marketing, we can quickly request for their genuine e-mail later on and continue the conversation there.
• The finest part: (A) the common open ratio of Messenger campaign is consistently over 80%! and (B) the click-through ratio is over 20%.

Conclusion: Is Facebook Messenger the New Email?

Without a doubt, email is ending up being less reliable for online marketers. It is far from being dead yet, but it's not exactly the marketing channel it utilized to be.

Just take an appearance at your inbox-- how lots of e-mails you have registered for are going directly to garbage without opening them? Precisely.

On the other hand, the Messenger is delivering the awesome results I have actually revealed above. The efficiency will level out in time ultimately after everyone will join the celebration. It is impossible to predict the precise time frame when this will happen.

Since composing this post in April 2019, only a little portion of business understand the capacity of messenger marketing.

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

The smart companies who seriously consider starting with messenger marketing this year will enjoy the benefits up until the marketplace will become more saturated in 2020.

The post was first published on medium.com