Top 6 Things that Drive Up the Cost of Your Facebook Ads Conversions For Real Estate Seller Leads

Many agents are using Facebook Ads as a Real Estate Lead Generation tool and Facebook Ads targeting to generate Real Estate Listing Leads is one of the more effective Real Estate Lead Generation platforms out there today, specifically when it comes to conversions and Home Valuation Landing Pages. Real Estate agents with this knowledge of Facebook’s ad platform are often able to do very well and get a lot of Real Estate Leads and conversions with Facebook Ads.

There’s one thing that haunts all Real Estate agents using Facebook to generate Home Seller Leads, however: the cost of your Facebook Ads conversions. 

Running Facebook Ads can get expensive when you are trying to get more Seller Leads. It’s a tremendously powerful way to drive traffic and get tons of leads, even if it can be a little expensive from time to time. With that said, I don’t think it hurts to  look at what are the key items that are driving up the cost of your conversions on Facebook Ads to see if there’s anyway to reduce the overall cost.

The 6 main items that can significantly and quickly drive up the cost of your conversions are your choice in audience, quality score, optimization, bid amount, bidding strategy, and frequency.


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1. Your Ad Audience 

Depending on your what audience you are targeting, many audiences will be more costly to advertise to than others. Why? Because your audience may be in high demand amongst other Facebook advertisers—Facebook Ads is, after all, run on an auction and bidding system.

There’s a common misconception that this means you’re only in competition with your traditional industry competitors (ie, if I’m a Real Estate agent in Texas, I’m only in competition with other Real Estate agents in Texas). This is not the case with Facebook ads. You aren’t just in competition with other Real Estate agents for your audience—your particular audience that you are targeting, most likely Home Owners in a certain area, may also be currently being targeted by a roofing company, a mortgage refinance company, and a local car dealership. Even though your companies are completely different and sell different services, your ads are all competing for the ad space on their newsfeeds, which drives up the cost.

Depending on how you setup your ad campaign and segmentation your exact audiences and who fits into them, different types of audiences may cost more. Not all targeting is created equal, you may have two audiences created for two different ads that look exactly the same, however the audiences may have slight variations that make them completely different and result in a different cost that may put you into a different area of ad competition.

Additionally , if you target the wrong audience, that’s automatically higher costs going up, especially in a CPM campaign.  Real Estate Leads for Realtors can be a competitive market when running ads in the same area as other agents using Facebook ads, but just make sure to be careful and detailed when creating your audiences to keep the cost down.


2. Relevance Score ( how exact is your audience of home owners )

Relevance Scores are Facebook’s evaluation of how well your ad will perform with your audience. This score is created by a variety of data points, for instance how your audience engages with your ad, conversions, clicks and click-through rates.

Relevance Scores will directly affect the cost of your ads as you run campaigns to get Seller Leads for Realtors

Facebook ads with a high quality score can reduce the cost over campaigns and conversions significantly. Let’s say that you are running two separate but similar campaigns in a A/B split test and one ad had a relevance score of 3.5, and had an average cost of $1.242 per click to the Home Valuation site. The second Facebook ad had a relevance score of 7.0, and cost an average of $0.68. It may not seem like much, but it adds up quickly when Real Estate Lead Generation Websites are involved and every lead makes a difference of closing more homes that month or six months from now and your ad budget is getting spent quickly…

3. Selection of Optimization & Objective of Your Ads 

When creating a new ad (to use the Facebook as the Best Way to Get Real Estate Leads in our opinion… ) Facebook asks you to choose what your objective is for the ad and what you want to optimize for…

When you are optimizing for conversions, Facebook will be charging you for impressions and the same thing for clicks to your home valuation landing page.

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