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So let’s discover the cost per lead in Facebook ad specifically in India and also talk about the important metrics you should look at, how you can reduce your cost per lead, and what cost per lead means.
Cost per lead is a metric in Facebook ads which means how much you are spending in ads to get one lead.
Let’s understand this with an example, for example, you are spending Rs.10,000 on a Facebook ads campaign and you have generated 200 Leads. Your cost per lead will come out to be Rs.50.
Now, your CPL might differ depending on which kind of business you are in. The reason is pretty simple, if you are in a highly competitive niche, there are great chances your CPL will be high, but if you are in a low competitive niche your CPL could go low.
Your cost per lead depends upon a lot of factors. Let’s first discuss it:
1. The first and the most important factor as I mentioned above, is your nature of business. If You Are into real estate or finance, your cost per lead will be higher compared to any other business.
2. One of the major factors could be the quality of ad creative and ad copies, as I have mentioned in a lot of my social media channels, if your ad creative is not up to the mark, your ad cost will automatically go high. If you want to know the reasons why your ad cost goes high, you can read this blog to have a better understanding.
3. Audience targeting can also play a really important role if you are not able to target your audience correctly. There are great chance that your cost per lead will go high.
4. Even your website plays a really important role. The more optimized your landing page is, the better results or less CPL you will get.
As I mentioned, cost per lead heavily depends upon the:
1. The Industry You are in
2. Competition
3. Price of the product
Let’s take an example here: Suppose there are two-course sellers, Seller A and B respectively, and the course is priced at Rs 5000 and Rs 1000 respectively.
Seller A is running ads for the webinar, so its pretty obvious, to get someone into a webinar that cost Rs 249, the cost per lead average is Rs 500-600.
Seller B’s course price is low ticket and he is directly running a lead campaign, so the average cost in this industry is Rs 300-400 to get a conversion for Rs 1000 course.
I have just given an example of one industry, the industry is same, but the pricing is different, and that is why the cost came out to be different.
If you are into mid ranged ticket, Your CPL can range from Rs 200-300 (really just an average)
If you are into low ticket prices, you cost per lead can range from Rs 10-100.
And if you are into high ranged product, for example a luxury property, there is no set average. Here you just need to focus on how you can get profitable through ads.A lot of people are always confused as they don’t understand the difference between CPL and CPC, let’s break that down first.
CPC aka cost per click simply means the amount of money you need to pay to facebook to get a single click on your website or any other external sources.
Let’s take an example: If your ad budget is 5000 and you got 100 leads and 50000 clicks on the website:Your CPL: Rs 50
Your CPC: Rs 0.1 (that’s not you will usually see)
3. Your ad creatives and ad copies should be relatable to your audience, if no one clicks on it, CPL ultimately goes high.
4. Make sure to keep testing your ads every once in a while, because a single ad campaign will not continuously give you optimized results.DAMINI TRIPATHI
Damini Tripathi, rocking the digital marketing scene for 5 awesome years. Started from scratch, now running my digital marketing agency and creating cool content too. She has been one of the fastest-growing digital marketers on the internet. Damini has also scaled multiple clients from ZERO —> HERO.