Facebook lead generation: Do Facebook lead ads really work?

Facebook lead generation is out there as a top method to get leads for your business. Given its massive user base, almost every business has an audience on the platform. 

So as a business owner, it’s only natural to wonder if Facebook lead ads really work’?

Or, why should you use Facebook as a lead generation platform?

Here, we’ll explore the topics that exactly answer these questions. But first, let’s review a few advantages of using Facebook lead generation for your business.

Advantages of using Facebook lead generation for your business

1. Facebook has a large target audience across various niches

In the first quarter of 2024, Meta announced a daily active user base of over 3 billion across its key platforms (Facebook, WhatsApp, Instagram, or Messenger). Interestingly, approximately 48% of the entire U.S. population uses Facebook.

2. Facebook offers high engagement to businesses

Over 90% of brands maintain a presence on Facebook. High engagement on Facebook will help you reach more people and increase customer loyalty.

And after seeing a product or service in a Facebook Story, 58% of Facebook users proceed to explore the brand’s website for additional information. Also, a notable 31% of users indicate that they visit a physical store to personally investigate the business.

3. Facebook ads produce great results

The average cost per click on Facebook ads across all industries is $1.72. Because of this, 89% of US marketers are using Facebook for advertising.

4. Facebook offers device-friendly experiences

Facebook makes it easy for businesses to reach both desktop and mobile users. Over 80% of active users’ accounts worldwide accessed Facebook via mobile devices.

How does Facebook lead generation work?

Facebook lead ads are a convenient and effective way for businesses to gather information from potential customers directly on Facebook.

Lead ads are also one of the best lead-generation tools of all time, especially for targeting mobile users. By allowing users to interact with the ad effortlessly, they are much more likely to provide their information quickly.

But how do Facebook lead ads work?

For starters, when users tap on an ad, they are shown a pre-populated form. This form is filled with their Facebook contact information. So, to share their information, all they have to do is click submit.

You can create and manage your lead ads within the Meta Ads Manager. This is where you’ll also find your audience lists, conversion data, and a whole lot of other tools that let you have seamless control over your advertising campaigns, including budgeting and scheduling.

Lead ads are customizable. In addition to the ability to customize the form, you can design the perfect ad with various elements, such as descriptive text, videos, and images. And the perfect ad helps in creating more engaging content that can lead to higher conversion rates.

Speaking of creating a solid engagement, you can also use Facebook’s extensive targeting features to reach specific demographics or audiences with particular interests. This helps direct your ads to the most relevant audience, and so increases your odds of generating quality leads.

For users, interacting with a lead ad is similar to engaging with a standard link ad. The main difference is that clicking on a lead ad takes them to a form instead of a website landing page. This minimizes friction and channels your efforts as an advertiser to capture more leads.

Can Facebook generate leads for my business?

Absolutely! Facebook can generate leads for your business using lead ads. But what this powerful tool is most effective for is helping businesses understand and connect with their audience. Are you wondering: can Facebook generate leads for my business? If yes, here are some ways Facebook can support your brand:

Facebook lead ads help you understand your audience.

Facebook lead ads allow you to directly engage with your audience through the most ancient device for creating dialog: asking them questions. This can be more effective than relying solely on customer data, since it provides real-time insights.

You can also use these ads to conduct market research by asking questions relevant to your business. This allows you to gather valuable information about consumer preferences, trends, and feedback.

You can collect customer feedback using a lead ad campaign.

These ads are the perfect medium for customers to give feedback. Then, you can use this data to improve products or services and tailor them to meet customer needs.

Facebook lead ads are designed to help increase conversions.

Facebook’s robust targeting options let you reach specific segments of your audience. The result is higher-quality leads at lower costs.

Additionally, tailoring the lead forms to ask the right questions means higher conversions. You can capture the specific information that is most valuable for your business and most relevant to your audience.

Here is how to effectively generate leads on Facebook. 

Does Facebook lead ads work?

Case studies are often considered one of the best methods to understand a topic. So here are some case studies to demonstrate: how and why do Facebook ads drive leads for businesses?

Middle East property developer, Aldar Properties

Aldar Properties is a luxury real estate developer that boosted its lead generation by connecting its CRM system with Meta’s Conversions API. They also focused on conversion leads instead of just getting a high volume of leads.

This helped them use lead ads in an optimized manner and reach people more likely to book property viewings. By sharing very detailed customer data with Meta, Aldar’s ads targeted users similar to those who had already shown interest. This change led to:

• 3X lower costs per booking
• 6X more appointments
• 38% drop in people losing interest after submitting their info

All these factors helped them create a few examples of successful real estate ads on Facebook.

Second-hand car dealer, Suekairod

Suekairod is a second-hand car marketplace in Thailand that could increase its lead generation by using ads that click to Messenger. This approach allowed interested car sellers to start a seamless conversation in Messenger. The company anticipates that this approach could generate more car sales leads.

With this strategy, they could share their contact details and receive a grocery voucher offer. Thanks to the automated chat, the process was quick and easy, which encouraged more people to join in.

Compared to their usual lead ads, the Messenger-based campaign delivered:

• 3X more leads
• 68% less cost per lead

The success of this new strategy has motivated Suekairod to continue using and experimenting with Messenger lead generation in future campaigns.

Nevertheless, this level of incoming data calls for a robust automotive lead management system.

Turkish cosmetic clinic

Mira clinic is a cosmetic dentistry and plastic surgery clinic in Turkey that improved its lead generation. It used conversion lead optimization for its Facebook ad campaigns in order to target higher-quality leads by integrating its customer relationship management (CRM) system with Meta ads.

By optimizing for conversions, the clinic’s ads reached people who were more likely to be genuinely interested in their services. This approach resulted in a:

• 48% increase in quality leads
• 36% lower cost per lead compared to their standard lead ads.

The campaign also featured testimonial videos from patients and celebrities as one of the best lead generation practices. This proved highly effective in attracting new customers and lowering acquisition costs.

Acuvue Korea

Acuvue Korea launched the Acuvue Moist Multifocal lens in South Korea with a focus on lead generation through Facebook and Instagram lead ads with instant forms. The campaign was designed to boost product awareness and encourage bookings at optical shops. 

The company conducted a Meta A/B test comparing traditional lead ads with a combination of instant forms. The campaign’s results were impressive:

• 78% more leads with the combined campaign compared to traditional lead ads alone.
• 44% lower cost per lead for the combined campaign.
• 1.8X higher click-through rate for the combined campaign.

This is another testament to the effectiveness of instant forms in lead ads.

How to track results from Facebook ads lead generation

To understand whether your campaigns are performing well or not, you need to track the results of your Facebook ads for lead generation. 

Setting up your conversion tracking starts by installing a Facebook Pixel and then implementing the Conversions API for CRM. This system helps you measure actions taken on your website post-click. 

Facebook’s built-in analytics is no longer available. However, the insights in Meta Business help monitor ad performance metrics such as click-through rates, cost per lead, and conversion rates. 

Besides, this tool offers a view of both organic and paid social media outcomes on Facebook and Instagram, metrics, trends, and visual reports.

Source

Keep in mind to regularly analyze these data points to identify trends and optimize campaigns accordingly. You may also consider testing different ad elements systematically through A/B testing to understand what influences audience responses. 

Another less popular method is integrating tracking parameters in your lead forms to gain insights into which specific ads and placements are driving the most leads. This allows for more targeted optimizations in your future campaigns.

Facebook lead generation campaign cost

The cost of a Facebook lead generation campaign really depends on a few factors:

• Target audience: Demographics, interests, and location make some audiences more competitive (and therefore more expensive) than others.
• Ad quality and relevance: More relevant ads often lead to lower costs because Facebook rewards valuable content.
• Bidding strategy and budget: The bid strategy (e.g., cost per click, cost per lead) and the overall budget will impact the cost. 
• Industry: Industries have varying levels of competition on Facebook, of course, with varying costs. 
• Time of year: Advertising costs can fluctuate throughout the year. 
• Ad placement: Ads placed in high-traffic areas cost more than those placed in less visible locations.
• Campaign duration and frequency: How long and how often your ads are shown can also influence the cost.

That said, let’s look at some numbers. The average cost for a lead on Facebook across different industries is roughly $19.68. Facebook lead ads come in at an average cost-per-action of about $17.98, with a conversion rate of 12.54%. 

This is in contrast to campaigns directing users to a landing page, which usually see a conversion rate of 10.47% with a cost per action of $13.26. So, it seems that while you might pay a bit more for Facebook lead ads, they generally tend to deliver better conversion rates. Want to stay on top of your Facebook advertising finances? Discover more about Facebook ROAS here.

Or wondering how much you should spend on Facebook ads? Here’s everything you need to know!

How to improve Facebook lead generation

Lead generation is a moving target. That’s the same with lead generation on Facebook, which requires constant optimization and strategy tweaking. Here are some tips you can use to refine and improve your Facebook lead generation.

Know your audience

Start by refining your target audience to make sure that your ads reach potential customers who are most likely to engage. Using Facebook’s robust targeting options help you implement journey-based advertising. 

This basically lets you define demographics, interests, and behaviors that align with your ideal customer profile, and show them ads suitable to their current stage of the buyer’s journey.

Less is more when creating ads

You can also optimize your lead forms by asking for essential information only. As a rule of thumb, shorter forms typically increase conversion rates. 

When you create new ads, ad formats are another factor in your Facebook ad’s anatomy. Just make sure to check how your text and images look in each ad format, and see how they appear on both mobile and desktop.

Testing and optimizing

Regularly testing different ad creatives and placements helps determine which combinations perform best. 

Your ad copy counts

Use short descriptions, compelling calls to action, and high-quality visuals to grab attention and encourage viewers to act. A clear value proposition in your ad copy can always increase the effectiveness of your campaigns.

Have a high-performing funnel

A well-planned sales funnel allows you to closely monitor how people engage with your ads at each funnel stage. These insights allow you to capture the attention of users and convert prospects into customers. 

Here is how to create a Facebook Ads funnel that converts.

Frequently asked question

Why do Facebook ads drive leads for business?

The effectiveness of Facebook ads is largely due to their advanced audience targeting options, the extensive number of users on the platform, and the depth of analytical data provided.

When brands couple these features with a solid strategy and consistent experimentation, they often find that Facebook ads can bring in a notable return on investment. What makes them a low-friction method is that interested prospects can easily provide their contact details right on Facebook.

Can you retarget people who engage on Facebook lead ads?

At the heart of retargeting on Facebook is custom audiences. You can manually create this audience using a list of customer names and details. Alternatively, you can use your pixel or SDK for a more automated approach. This allows you to add individuals to your custom audience based on specific actions they’ve taken. 

The idea is to focus on the targets you’re most interested in as accurately as possible. One way to increase this precision is by streamlining your data management processes. You can do this by connecting your CRM audiences to Facebook custom audiences through LeadsBridge

How quickly should a Facebook lead ad work?

The time it takes for a Facebook lead ad to bring in the first results varies. It’s based on your campaign setup, audience, and goals. Generally, you should let the campaign run for at least 1-2 weeks before you can collect any meaningful data.

However, there are immediate steps you can take to improve the results as you go. For instance, following up with leads right after they submit their information and implementing automation can dramatically boost conversions.

Also, using the Conversion leads performance goal can optimize your campaigns. This is a configuration that helps improve your lead quality by focusing on the users with the highest potential to become leads and even customers.

How to automate Facebook lead generation forms?

Automated data bridges are the go-to method for streamlining the process of transferring data from Facebook lead generation forms to other business systems (such as CRMs or email marketing tools). Automating this process allows businesses to ensure timely and efficient handling of lead data, reduce manual errors, and speed up follow-ups. 

As an official Meta Business Partner, LeadsBridge presents a plethora of Facebook lead ads integrations with all the top marketing tools. These seamless integration solutions sync lead information captured through Facebook forms with your business systems in real time. 

In response, you can engage immediately with your potential customers and boost your lead management strategies. Learn how to connect Facebook lead ads to your favorite marketing platform with LeadsBridge.

Do Facebook lead gen ads work on Instagram?

Yes, Meta’s lead gen ads can also run on Instagram. They are called Instagram lead ads and work similarly to those on Facebook. When someone clicks on your Instagram lead ad, they are prompted to complete a form directly within the app. This makes it quick and easy to gather contact details or other information.

These ads are ideal for your brand if you want to capture leads on both platforms while reaching two different audience groups. For better results, keep the design and messaging in line with Instagram’s visual-first culture.

Final thoughts

Facebook lead generation ads are one of the best ways to generate consistent leads for your business. With a good advertising strategy, you should be able to get targeted leads to grow your business. However, you can stay ahead of the competition by adding automation to the mix by using LeadsBridge integrations. These data bridges allow you to automatically funnel your leads from Facebook to your favorite CRM.

Considering all that we discussed, would you say that Facebook lead ads work?

For one thing, the case studies above showed that Facebook lead ads really get results. If you have not been using Facebook leads ads for your business, you are leaving money on the table. Now is the right time to advertise your products or services using Facebook lead ads.

Discover all the possible integrations to connect Facebook lead ads with your favorite marketing tool automatically.