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

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

It is safe to state that every advertiser faces this problem nowadays-- the average cost per click (CPC) has risen significantly.

With this pattern, it is harder and harder to achieve favorable ROI on paid advertising. It is possible to boost ROI with numerous optimization techniques. However the difficult truth is that a lot of campaigns that were successful a year earlier, do not make financial sense any longer.

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 e-mail signup was around $3.50. That was determined with the long term 3% typical click-through rate of their e-mail marketing.

As their CPL crept up to over $3 in the 2nd half of 2018, the ROI approached the break-even point. It was clear that the service design might not manage even further increase in advertising expenses expected in Q4.

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

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

The method that cut expense per lead by 90.6%.

The Facebook campaign created leads (email signups) for $3.11. The quality of the leads was consistently 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 Goal in Facebook Advertising campaigns.
2. We sent out visitors to our Facebook Messenger chatbot.
3. The users were then engaged in a conversational sales funnel within Messenger.

The legendary advantages of switching to Send-to-Messenger Facebook project.

• Everybody who clicks our ad and who interacts with our bot instantly becomes a customer. The subscribe ratio was approx. 98% ... The staying 2% didn't make it to the bot.
• To put this into point of view-- A typical landing page has a 2-- 10% conversion rate, suggesting that 90-- 98% of clicks are lost permanently. (Yes, a piece of them can be saved by retargeting).
• We have the name of each contact. Their real names, tied to the Facebook profile. Increasingly more users nowadays provide a separate sign-up email that they deal with as non reusable. With messenger marketing, we can easily ask for their real email in the future and continue the discussion there.
• The very best part: (A) the normal open ratio of Messenger project 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 effective for marketers. It is far from being dead yet, however it's not precisely the marketing channel it utilized to be.

Simply have a look at your inbox-- the number of e-mails you have subscribed to are going straight to trash without opening them? Exactly.

On the other hand, the Messenger is delivering the remarkable results I have revealed above. The efficiency will level out gradually ultimately after everybody will sign up with the celebration. It is difficult to forecast the precise time frame when this will occur.

As of composing this post in April 2019, just a small portion of business are aware of the capacity of messenger marketing.

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

The wise companies who seriously think about starting with messenger marketing this year will take pleasure in the benefits till the market will become more saturated in 2020.

The post was first published on medium.com