Facebook Ads Case Study: A technique that cut Expense Per Lead by 90.6% and increased CTR 9.3x.

Have you seen how expensive the Facebook advertisements became compared to the excellent old days (until approx. Q2 of 2017)?

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

With this trend, it is harder and harder to attain favorable ROI on paid marketing. It is possible to increase ROI with numerous optimization methods. But the difficult truth is that a lot of projects that paid a year ago, do not make financial sense any longer.

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

As their CPL sneaked up to over $3 in the second half of 2018, the ROI approached the break-even point. It was clear that the business design could not handle even more increase in marketing costs anticipated in Q4.

I explained several possible optimizations of the sales funnel and the backend to increase the overall conversion rate.

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

The strategy that cut expense per lead by 90.6%.

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

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

• Everybody who clicks our advertisement and who communicates with our bot immediately becomes a customer. The subscribe ratio was approx. 98% ... The remaining 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, implying that 90-- 98% of clicks are lost permanently. (Yes, a chunk of them can be rescued by retargeting).
• We have the name of each contact. Their real names, connected to the Facebook profile. A growing number of users nowadays supply a different sign-up email that they deal with as disposable. With messenger marketing, we can quickly request their genuine email later and continue the conversation there.
• The very best part: (A) the typical 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, e-mail is ending up being less reliable for marketers. It is far from being dead yet, but it's not exactly the marketing channel it utilized to be.

Simply take an appearance at your inbox-- how many e-mails you have subscribed to are going directly to garbage without opening them? Exactly.

On the other hand, the messenger is providing the remarkable results I have revealed above. The performance will level out in time ultimately after everybody will join the celebration. It is impossible to anticipate the specific time frame when this will happen.

Since writing this post in April 2019, only a small portion of business are aware of the capacity of messenger marketing.

I anticipate to see proportionally more marketers in this space in the Q4 of 2019.

The wise business who seriously think about starting with messenger marketing this year will take pleasure in the advantages up until the marketplace will become more saturated in 2020.

The post was first published on medium.com