Facebook is one of the most popular social media platforms in the United States with over two billion users. For that reason, advertising on Facebook can bring a monumental impact for a business. What’s important is knowing how to create effective ads and what metrics mean and why they matter. With millions of advertisers across countless industries marketing on this platform, it’s important to pay attention to the statistics within your industry. Here’s what the metrics tell us about how real estate agents can estimate where their Facebook marketing performance should stand.
The average click-through rate (CTR) for all ads on Facebook is .90%. The CTR for the real estate industry is close to averaging at .99%. If your click-through rate is significantly lower, that’s a clear sign that your ads are not speaking to your target audience as effectively as they could. Adjusting your word choice, title length, or tone of message may help increase your CTR. The creative of your ad- meaning, your chosen graphics- is highly important as well and needs to be strategized to attract the audience you’re targeting. There are many moving parts in the creation of an ad and it’s important to fully strategize each and every part to get the best results.
Cost-per-click (CPC) and cost-per-action (CPA)
The average cost-per-click for Facebook ads across all industries is $1.72 and the average cost-per-action is $18.68. The real estate industry averages at $1.81 per click and $16.92 per action. CTA is referring to exactly what you’d think. It’s whenever a viewer clicks on your advertisement. As for CPA, it is determined by what action you want that ad to track. For instance, if you wanted to track how much it costs for a viewer to visit your website- that action is where the price is being averaged from.
If your costs seem higher than the norm or you want to decrease your Facebook advertising cost, try targeting a narrower demographic or putting your budget across multiple ad sets. You don’t want to be too broad and you shouldn’t put “all your eggs in one basket.”
Now the important statistic- the conversion rate. This is the metric that confirms if your efforts are paying off. The conversion rate refers to whatever you have set up in your metrics as the goal of the advertisement. For most, it’s to generate a sale of some sort. A conversion rate is a rate at which a viewer converts to your CTA (call to action).
The average conversion rate across all industries advertising on Facebook is 9.21%. The average conversion rate for the real estate industry is 10.68%. Hopefully, your conversion rates are close to the averages. If they are, you are doing a good job in your social media marketing efforts. If not, look at your overall marketing strategy to determine if there are some changes you can make in your ad creatives or ad sets.