Solved: High Cost Per Lead on Facebook Ads for Properties

Hi there,

Thanks for reaching out. Happy to give you some initial thoughts and guidance on your Facebook ads for distressed properties campaign. It sounds like you're experiencing some common challenges, so let's dive in.

Initial Assessment

Based on what you've shared - high cost per lead (over $100), budget allocation to non-performing creatives, and a click-through rate between 2% and 3% - it seems like there's room for improvement in several areas. Namely targeting and the lead form.

Here's a table summarizing my recommended actionable solutions:

We'll need to look at traffic quality and your website...

Your click-through rate of 2-3% suggests that your ads are capturing attention, which is a good start. But a high CTR doesn't always translate to high-quality leads. It's important to analyze where people are dropping off in the funnel and identify the root cause.

Firstly, the quality of the traffic matters. Are you attracting the right audience who are actually interested in distressed properties? Or are you attracting window shoppers who are just curious but not ready to take action?

And are you pointing them directly to a lead gen form, or to a landing page first? You might have more luck pointing them to a landing page that warms them up, and only shows the form if they are actually interested. The page should feature persuasive copy and clear calls to action. A page selling the dream, with social proof etc. I've run quite a few campaigns for B2B SaaS. Some see ROI within a few days. But many take longer to optimise. A lot will depend on your offer, a completely free trial usually works best to get people in the door, then you can onboard them, nurture them, and upsell them to a plan later.

I'd say you need to give it more time...

Facebook's algorithm does take time to learn and optimise. It's possible that you haven't given it enough time to gather data and identify the best-performing audiences and creatives.

Give it some time, don't make any drastic changes to early - but do keep a close eye on the ads. Once you have some data, you can start to make informed decisions. I'd also defo test out different things.

But if the algorithm keeps allocating budget to creatives that haven't generated any leads, this could be a sign that your initial setup needs some tweaking. Are you using campaign budget optimisation (CBO)? If so, try switching to ad set budget optimisation (ABO) to have more control over budget allocation. Or vice versa - it depends on your campaign setup.

Check your ad copy and visuals...

Your ad copy and visuals should be highly relevant to your target audience and highlight the benefits of investing in distressed properties. Use clear and concise language that resonates with potential investors.

We've had several SaaS clients see really good results with UGC videos - lots of angles to test there as well. If you've maxed out the pool of people likely to convert with your budget on Meta ads, you could try a new ad platform and tap into a different audience this way. Usually this won't make sense though until you've scaled to a higher ad spend.

Consider using high-quality images or videos of distressed properties that showcase their potential. A before-and-after comparison can be particularly effective.

Consider your lead form setup...

Yeah, asking for the full property address could be a barrier. Maybe just ask for a postcode at first? Or even just city and state. You can always get the full address later on if they are a qualified lead. Asking for too much information upfront can deter potential leads from completing the form.

I remember one client that was selling a SaaS product. We found that asking for a phone number on the lead form significantly reduced the number of leads. Once we removed the phone number field, the number of leads increased dramatically.

Also, are you pointing them directly to a lead gen form, or to a landing page first? You might have more luck pointing them to a landing page that warms them up, and only shows the form if they are actually interested.

Ad Platform Choice

As an agency, I assume you're selling to other businesses? First thing I'd do is think about your ideal customers. Who are the companies that buy from you, who are the decision makers?

Are they actively searching for a solution? -> Most business services are pretty difficult to sell unless the company already has an urgent need they are looking to solve. -> Google Search ads will likely be your best option to get traffic from people searching for help.

They aren't searching for a solution? -> Social media ads with conversion optimisation can work but you'll need to get the targeting right. - Do you need to reach specific decision makers in specific industries? -> Your best option is LinkedIn Ads as you have narrow B2B targeting options available.

- Do you work with small businesses? -> Facebook/Instagram ads can work well if you use some of their limited B2B targeting options like "small business owners" or "business page admins".

Expert Help

Scaling paid advertising campaigns can be tricky. Hopefully this gives you some ideas of things to try, but often it helps to get a fresh pair of eyes on your account. Someone with expertise in scaling software campaigns, or distressed property campaigns.

If you'd like to explore how our agency could help you optimise your Facebook ads and drive more leads, we'd be happy to offer you a free consultation. We can take a deeper look at your campaign setup, targeting, and creative assets, and provide tailored recommendations to improve your results.

Regards, Team @ Lukas Holschuh