How to Lower Your Cost Per Conversion With Facebook Ads

How to Lower Your Cost Per Conversion With Facebook Ads

When running a Facebook ad campaign, one of the main skills you’ll need to master is lowering your cost per conversion.

 

 

Cost per conversion is the cost for achieving the goal of an ad. For example, if your campaign objective is getting likes on your Facebook page, and you spent $100 to get 100 fans, your cost per conversion is $1. In other words, it cost you $1 to get one Facebook page fan.

If your Facebook ad campaign objective is to get leads and you spent $1,000 to get 200 leads, then your cost per conversion is $5. In other words, it cost you $5 to get a single lead.

So if you run into a situation where your cost per conversion is too high, here are the few steps you need to take to lower your cost per conversion.

If you’d like to take your Facebook marketing to the next level, and increase the results you’re getting from your current Facebook marketing efforts by 10, click here to download my FREE Facebook marketing report. Simply enter your name and email and I’ll instantly send you the report.

First, check the obvious. Make sure your ad is approved in the first place in Facebook ads manager. Or, if the ad is approved make sure you haven’t accidentally paused the ad. Sometimes Facebook will turn off your ads because you’re not getting enough impressions, so make sure Facebook hasn’t turned off your fb ads either.

 

 

If all your fb ads are active, then check your impressions in Facebook ads manager. If you have enough impressions but no conversions or very few conversions that are very costly, turn off the most underperforming fb ads or ad sets.

However, don’t turn off your ads too soon. Ideally, Facebook wants you to run your ads for at least 7 days so it gives enough time for the Facebook algorithm to figure out how to get you the best results at the lowest cost possible.

 

 

Next, check your clicks. In other words, check whether your fb ads are generating clicks. When you generate clicks, it’s an indication that your ad copy is good and is generating interest.

When your fb ads generate lots of clicks, Facebook will reward you by lowering your cost per click because it shows that your ad resonates with your audience, which is what Facebook wants. Facebook wants to show content that people enjoy.

So if your cost per conversion is high but your cost per click is low, it’s a very positive sign, because it means you’re still getting traffic cheaply, in other words, there’s an interest for what you’re advertising, all you need to do is improve the conversion and conversion cost.

On average, a high click through rate is anything over 1% and a low click though rate is anything below 1%. So you want to have a high click through rate, which is the percentage of people who click on your ads after they’ve seen them.

For example, if 1000 people see your ad and 10 of them click on your ad, that would be a 1% click through rate.

 

 

On average, a low cost per click is less than a dollar per click, but this can vary a lot mong different industries. I know for example, that getting traffic for stock market and Forex related information and products costs much more.

But on average, spending about a dollar to 2 dollars per click with Facebook ads is pretty standard.

Now, if your cost per conversion is too high and your cost per click is low and your click through rate is good, you need to check your landing page.

It means that the problem is not your ad or your targeting, the problem must be coming from your landing page.

You’ll have to create different variations of your landing page so you can test different elements of it. Don’t test small, insignificant things that don’t impact conversions and the conversion cost as much, such as the colour of certain tabs or the text font.

Instead, test elements that impact your conversion rate and conversion cost such as the headline or the overall message on the landing page.

A good investment to make is hiring a professional copywriter to create other variations for the headline and text on your landing page.

 

 

You might want to test a landing page with a video and one without. Make sure as well that the layout of your landing page is not old fashioned. Some landing pages are so old fashion that it turns people away and as a result affect your conversion rate.

There are plenty of tools available now that provide quality templates for landing pages such as lead pages, so make sure you use them or model them.

Also, make sure that everything works on your landing page, test all the buttons. If you’re selling something, make sure the buy button works. If you’re offering something for free, make sure the fields you ask people to fill in, work as well.

Also make sure your page loads quickly. If people click on your ad and then the landing page takes too long to load, then they’ll abandon the landing page which affects your conversion rate.

Ideally, your landing page which requires people to fill in their information such as name and email should convert between 10 to 20%.

 

 

A conversion rate below 10% on a landing page which doesn’t require people to purchase anything is considered a bad conversion rate.

Aim for a 20% conversion rate with cold traffic. In other words, try to have at least 20 people out of 100 follow your call-to-action on your landing page.

If you’re sending people to a sales page, a 1 to 3% conversion for cold traffic is pretty standard across all major industries.

What this means is that if you’re advertising products to sell to people who don’t know you, from a Facebook ad, you should aim at making 1 to 3 sales per 100 visitors to your landing page.

If you’d like to take your Facebook marketing to the next level, and increase the results you’re getting from your current Facebook marketing efforts by 10, click here to download my FREE Facebook marketing report. Simply enter your name and email and I’ll instantly send you the report.

Another way to lower your cost per conversion is by looking at your fb ads and making sure that your fb ads match your landing page.

What happens very often is that ads look way too different from the landing page, they use different people, different headlines, different graphics, different colours, different message, even different pictures which can make people click away as soon as they are on your landing page because they think they’ve gone to the wrong place.

 

 

So check your ads in Facebook ads manager and make sure they’re congruent with your landing page. This will ensure more people stay on your landing page and therefore convert.

For example, if your ad is a video ad, of someone talking straight to the camera, to ensure there’s consistency between your ad and landing page, have a video with the same person on your landing page.

Then, to lower your cost per conversion even further, check your targeting. Create different audiences and segment them to see whether one segment of your audience performs better.

For example, you could target women for some fb ads and target men for other ads to see which one performs better. You could do the same with age groups or locations.

Create ads for people in a specific location and create ads for people in another location for example.

Most businesses have various customer avatars, so make sure you target people based on the different customer avatars you have and create ads according to each customer avatar.

 

 

The more your ads are created to fit a specific customer avatar, the more likely they’ll convert which will lower your cost per conversion.

You can use “audience insights” to find out more about who your audience is and their interests so you can fine tune who you target accordingly. You can also create all sorts of lookalike audiences.

Facebook allows you to create audiences that are similar to an audience that performs well. For example, if your Facebook ad campaign objective is to generate leads, then you can create a lookalike audience based on the leads you already acquired from your Facebook ads.

Lastly, look at your offer. Your cost per conversion could be high because your offer is not appealing enough. Maybe the price is too high, maybe it doesn’t feel like good value enough, or maybe it’s not what your audience wants. If you suspect that’s the case, change your offer and test different offers.

You could be offering a free physical book, but your audience prefers consuming audio books or prefers consuming video content. Or you might be charging too much for a book, when everyone else is giving books for free and only charging for shipping.

So test different offers and try to get to the bottom of what your audience really wants. You could even survey some of your customers, by simply asking them the question, “if you could have anything, what would it be?”. You’ll be surprised at what ideas you can have when your audience shares their wants and needs.

If you’d like to take your Facebook marketing to the next level, and increase the results you’re getting from your current Facebook marketing efforts by 10, click here to download my FREE Facebook marketing report. Simply enter your name and email and I’ll instantly send you the report.

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