Are Facebook Ads Worth It?

Since the beginning of time sales professionals have been trying to find a seamless way to generate leads without have to subject themselves to cold calling or door-to-door type sales. As soon as social media gave professionals a way to promote their businesses on various platforms it created great success for some and an endless cycle of constant posting and management for others. As social media grew popular sales professionals were trying to figure out a way to cut through all the noise.

Enter Facebook ads. I’ve done a lot of research on Facebook ads and what type of businesses they appear to work best for. I would say that for some sales professionals Facebook advertising has been an amazing tool. Depending on your industry, the ads can create an endless funnel of leads and a great return on investment.

Facebook is still the number one social media platform with 1.32 billion active daily users. 79% of American use the platform and 53% of Americans use Facebook several times a day. You know them, your friends and family who spend countless hours scrolling on Facebook afraid they’ll miss out on something.

When it comes to the Facebook ads you can custom create ads for your target market that will only be seen by your target market. These ads are not only great tools to generate leads but a way to create a brand. These ads can deliver your story, your vision and the benefits of doing business with you directly to your ideal client.

Overall the average click through rate on the Facebook ads are 0.9%. Some industries, such as the legal industry, average a rate of 1.61% while the finance & insurance industry averages 0.56%. Now there are several ways to look at this. For one the finance & insurance industry would include all insurance agents, financial advisors, planners, coaches, banks, credit unions, etc. That is a very large number of professionals with potentially very different target markets. For instance, if you’re are a financial planner and your target market is ages 60+ you will get a lower click through rate than if your target market was 40+. Why? Because there are more 40-year-olds spending time on Facebook than 60-year-olds.  Due to such a wide array of circumstances the numbers can be subjective.

How about the cost per clicks?

The apparel industry averages $0.45 per click whereas the finance & insurance industry averages $3.77 per click. This is a wide range but again, the numbers are subjective. Someone selling a t-shirt is going to make far less than a financial advisor selling a life insurance policy.

It really doesn’t matter what the cost per click is, what matters is the rate of return. If you are still curious about what type of people are using Facebook ads, look at your own Facebook page. What type of professionals do you see sponsored ads for? In my Facebook feed alone, there are far more people paying for ads to sell clothing than there are financial products. I’ve recently noticed a local realtor with sponsored ads, but I have yet to notice a local financial advisor.

I talk to people all the time about financial advisors and they always ask me where to look for them. Most of these people range in age from 40 – 60. Perhaps financial advisors should consider advertising on Facebook to generate leads.

But are Facebook ads worth it? If you have a powerful message and market to only your ideal client, then yes, I do believe Facebook advertising can be a very beneficial lead generation tool.

Setting up and maintaining the ads can be a bit cumbersome so if you aren’t comfortable managing the ads yourself you can always hire someone to manage your social media for you – sometimes, depending on the company you choose, the person managing your social media may even be able to set appointments with the leads generated from those ads as well.

If you are interested in learning more about the Facebook ad program through my company that also includes a scheduling assistant please feel free to email me at dbranson@eliteschedulingservices.com.

 

 

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