I think most legal marketers would agree that Facebook is a potent marketing platform. If you’re looking to reach a large scale audience (there were 1.86 billion monthly active users in the fourth quarter of 2016), look no further than Facebook.
But here’s a question. Should you experiment with Facebook advertising where you pay money for targeted ads? Or should you just stick with traditional Facebook marketing where you simply have a business page for your law firm and generate leads that way? Let’s take a look at some key data points and use Google Adwords as a comparison to help you decide.
CTR and CPC
According to recent studies, the average Facebook ad click-through-rate (CTR) is 0.9 percent. This is considerably lower than the average CTR of an ad on Google Adwords (about 2 percent). In other words, Facebook advertising will yield roughly half of the clicks that Adwords will. Not ideal.
The average Facebook ad cost-per-click (CPC) is $0.64. This is quite a bit lower than what you would expect to pay on Adwords at $1 – $2. So in this regard, Facebook advertising would be less expensive in terms of CPC, which is a good thing.
However, it’s important to note that businesses are paying significantly more for an ad unit than they used to. In fact, Invesp reports that this number rose by 122 percent from 2014 to 2015. If this trend continues, Facebook advertising may get to the point that it’s too costly to turn a reasonable profit.
CPC by Age Group
One factor that not all legal marketers will consider is how much the CPC is according to age group. In other words, it costs more to reach certain age groups and less to reach others.
Here’s how it all broke down in 2015:
- 13 – 24 – $0.08
- 25 – 34 – $0.11
- 35 – 44 – $0.13
- 45 – 54 – $0.16
- 55 – 65 – $0.23
Keep in mind that these numbers are higher now in 2017. But as you can see, the most expensive demographic to reach is clearly the oldest one with people between the ages of 55 – 65. If this is your main demographic, Facebook advertising probably isn’t worth your time. But if you’re trying to reach a younger demographic, then you’re likely to have better results in terms of your CPC.
Number of Advertisers
According to Facebook, “Three million businesses actively advertise on Facebook. That’s three million companies from all over the world, with more than 70% from outside of the US.” But with more than 30 million businesses having a Facebook page, that’s a fairly small percentage. This means that the competition is reasonably low (at least for the time being). Although it’s almost guaranteed to rise considerably over the next five plus years, competition is fairly low at the moment.
There are both pros and cons of this marketing strategy. On one hand, the CTR isn’t great and the CPC is steadily increasing. And it’s particularly expensive if you’re trying to reach an older demographic over the age of 55.
But on the other hand, the CPC is still much lower than it is for Google Adwords. Also, the competition levels are fairly low at the moment. So when you break it all down, Facebook advertising is something that should at least be on your law firm’s radar. Although it may not be a sustainable strategy in the long run, it could definitely generate consistent leads for the near future.
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