Are Real Estate Facebook Ads Worth It?
Facebook Ads Statistics and Insights
Facebook ads are like sailboats. They look fantastic from a distance but can be a money pit and source of endless headaches. Let’s talk numbers first.
1. Conversion Rates and Costs
Real estate ads hold an impressive industry conversion rate at around 9.58%. However, don’t let the numbers fool you; the cost-effectiveness is tempting with a low cost per lead at approximately $12.43, but remember, you get what you pay for.
2. Click-Through Rates (CTR) and Cost per Click (CPC)
The engagement seems promising with a CTR of 3.69% and a CPC of about $1.22. Sounds good, right? Well, the plot thickens when we consider the actual quality of these leads.
Do Facebook Ads for Real Estate Work?
While Facebook ads for real estate might look good on paper due to high engagement and low costs per lead, the real issue is the conversion rate of these leads.
They usually require an enormous amount of nurturing by highly skilled professionals to convert, if at all, making them a less desirable option for most real estate agents looking for efficient lead generation.
My Experience as a Real Estate Marketing Expert
Paid social media and pay-per-click are two popular advertising methods, but assessing their effectiveness, particularly for social media leads, is challenging.
For example, a Facebook or Instagram lead would score quite low—between 1 to 3 out of 10 on a scale without qualifiers. That makes them some of the lowest-quality leads available.
Despite potentially attracting hundreds of respondents to a listing advertisement on Facebook, the overall quality of these leads tends to be poor.
This is especially true unless the advertisement includes a well-crafted, long-form video. Otherwise, these leads can end up being a significant waste of time.
That said, there are strategies and coaches out there making the most of Facebook Ads. If you’re set on trying them for some reason (maybe you have a powerful Facebook Business Page), then of course I’m here to help you optimize the journey.
Pros
- High Engagement: These ads can generate a lot of clicks and interest.
- Cost-Effective: Compared to other marketing channels, Facebook ads can be less expensive.
- Granular Targeting: You can target based on location, demographics, interests, and more.
Cons
- Poor Lead Quality: Many leads are just tire kickers.
- Poor Lead Quality: Many leads are just tire kickers.
- Skill-Dependent: Without deep knowledge and the right strategy, it’s easy to burn through your budget with little to show for it.
Step-by-Step Guide to Creating a Facebook Ad
Step 1: Access Ads Manager
1. Navigate to Facebook Ads Manager:
Go to your Facebook page and select the ‘Ad Center’ from the left-hand menu. From there, click on ‘Advertise’.
Step 2: Create a New Campaign
1. Start a New Campaign:
Click on the ‘Create new ad’ in the Choose ad type.
2. Choose a Campaign Objective:
For real estate, ‘Get more leads’ or ‘Get more website visitors’ are commonly used objectives. Select one based on your goal (e.g., getting inquiries, driving traffic to a listing).
Step 3: Set Up Your Ad Set
1. Start a New Campaign:
Click on the ‘Create new ad’ in the Choose ad type.
2. Set Your Budget:
Decide on a daily or lifetime budget for your ad. Consider how much you’re willing to spend to acquire a lead.
3. Schedule Your Ad:
Choose whether to start your ad immediately or schedule it for a later time.
Step 4: Design Your Ad
1. Select Ad Format:
Choose from formats like single image, video, carousel (multiple images), or slideshow. Videos and carousels are effective for showing properties.
2. Upload Your Media:
Add images or videos of the property. Ensure they are high quality and showcase the property’s best features.
3. Craft Compelling Ad Copy:
Write clear, engaging text that highlights key property features and includes a call-to-action (CTA), like “Learn More”.
Step 5: Choose Lead Form (for Lead Generation Ads)
1. Create a Lead Form:
If you selected ‘Get more leads” as your objective, you’ll need to create a form to collect information from leads. Include fields like name, email, phone number, and any custom questions relevant to your real estate business.
Step 6: Review and Launch
1. Preview Your Ad:
Check how your ad looks on different devices and make sure everything appears as expected.
2. Confirm and Publish:
Once satisfied, click the ‘Publish’ button to launch your ad.
Step 7: Monitor and Optimize
1. Review Ad Performance:
Use Ads Manager to track how your ad is performing. Look at metrics like impressions, clicks, and lead conversion rate.
2. Adjust as Needed:
Based on performance, you might need to tweak your audience settings, ad creative, or budget to improve results.
Additional Tips
- A/B Testing: Consider creating multiple versions of your ad with different images, headlines, or CTAs to see which performs best.
- Retargeting: Use Facebook Pixel to retarget visitors of your website who didn’t take action during their first visit.
Travis Thom’s Strategy
1. Targeting and Retargeting
Travis Thom emphasizes the importance of precise targeting and retargeting in his Facebook campaigns.
He uses Facebook’s detailed targeting options to reach specific demographics, interests, and behaviors that align with potential home buyers or sellers.
Retargeting is particularly crucial as it allows real estate agents to stay in front of prospects who have previously interacted with their content but haven’t yet converted.
2. Lead Generation Funnels
Thom is adept at creating lead generation funnels that guide potential clients through a journey from awareness to action.
His campaigns often start with broad awareness ads and narrow down through retargeting based on user interaction.
Each step of the funnel is designed to warm up leads and bring them closer to making a real estate transaction.
3. High-Quality Content
Content plays a pivotal role in Thom’s strategies. He advocates for the use of high-quality images, engaging video tours, and well-crafted ad copy that highlights the unique selling points of listings or real estate services.
This content is not only designed to catch the eye but also to provide value, thereby increasing the likelihood of engagement.
4. A/B Testing
To maximize the effectiveness of his campaigns, Thom continuously tests various elements of his ads, including visuals, headlines, call-to-actions, and more.
A/B testing helps him determine which combinations work best for different target audiences and adjust his strategies accordingly.
5. Utilizing Facebook’s Latest Features
Travis Thom stays on the cutting edge by incorporating Facebook’s latest advertising features into his strategies.
This includes dynamic ads, Facebook Stories ads, and leveraging new tools and updates as soon as they are available to stay ahead of the competition.
6. Educational Approach
Travis often uses an educational approach in his ads to help potential clients understand the buying or selling process. This can include tips for first-time homebuyers, market analysis, or insights into the mortgage process.
By educating the audience, he builds trust and establishes himself and his clients as knowledgeable professionals.
7. Community Building
Finally, Thom focuses on building a community around the brands he works with. This involves engaging with users who interact with the ads, responding to comments, and creating a dialogue.
By fostering a community, he enhances brand loyalty and creates a network of engaged, potential clients.
Travis Thom’s Facebook marketing strategies are comprehensive and highly effective, making him a respected figure in real estate digital marketing.
His methods provide a blueprint for real estate agents looking to enhance their online presence and lead generation efforts through targeted, thoughtful Facebook advertising.
Travis Thom’s Effective Real Estate Facebook Ad Strategies
Seller Guide
Even experienced homeowners can benefit from expert market guidance during the selling process. Position yourself as the authority and educate them.
List of Homes
Remember, most sellers are also potential buyers. Asking “Do you need to sell a home first?” has led to 30% of leads responding with “YES.”
Cash Offers
If you collaborate with investors, now is an excellent time to generate a list of motivated sellers.
Home Valuations
Sellers are often uncertain if it’s the right economic time to sell. Provide them with data to make informed decisions.
Downsizing
For many, the appeal of downsizing has never been greater. Anticipate their needs and present a selection of appropriately sized homes.
Market Report
Everyone, especially sellers, is curious about market trends. Become their go-to source for real estate insights to aid their decision-making.
Mike Sherrard’s Facebook Ad Post for Buyer Leads
Note: This strategy requires a real estate website with property listings.
Mike Sherrard reported that this exact Facebook Ad generated 21 closed deals in Calgary. Results will certainly vary, but it’s worth trying if you don’t know where to start.
Example Facebook Ad Content
Element | Details |
|---|---|
Primary Text | “Explore our free, customized list of budget-friendly homes in Calgary. Perfect for those looking to downsize. Click ‘Learn More’ to find your ideal property today!” |
Headline | “Top Downsized Homes in Calgary” |
Call to Action | The button used is “Learn More” to encourage clicks without suggesting a heavy commitment. |
Visuals | Features a high-quality image of an attractive, relevant property to catch the eye of potential buyers or sellers. |
Instant Form | Users are prompted to submit their contact information through a simple form to receive the list of homes. The form is set to high-intent for better lead quality. |
Targeting and Placement | Targets potential downsizers in Calgary. |
Ad Elements to Skip At First
- Advanced Campaign Budget Optimization (CBO) – Not necessary for straightforward lead generation.
- Detailed Targeting Features – Rely on Facebook’s algorithm instead of manual configurations.
- Dynamic Creative – Unnecessary for beginners; keeps the process simpler without automatic testing of ad components.
- A/B Testing – Avoid this to focus on launching the main ad efficiently.
- Conversion Objectives beyond Lead Generation – Focus solely on the lead generation objective.
- Multiple Placements – Limit ad placements to essential ones like Facebook and Instagram feeds.
- Manual Detailed Targeting – Not recommended due to Facebook’s efficient algorithm.
- Rich Text and Visual Customizations in Instant Forms – Avoid these advanced options as they are not essential for effective lead collection.
To obtain the link that is included in the Facebook ad, follow these steps on your real estate website.
1. Navigate to the Relevant Listings:
- Once on your website, navigate to the section where the properties are listed. This might involve selecting specific filters such as property type, location, or price range to match the theme of your ad, which in this case is “downsizing in Calgary”.
2. Apply Appropriate Filters:
- Apply filters that match the criteria of your ad. For example, if the ad is targeting downsizers, you might set a price filter that represents a typical downsizing price in the market, or choose types of homes that are generally sought after by those looking to downsize.
3. Ensure Listings Are Current and Relevant:
- Make sure the listings you are selecting are current and relevant to your target audience’s needs. This ensures that the link you include in your ad leads to properties that are actually available and suitable.
4. Copy the URL of the Filtered Listings:
- Once you have the filtered listings displayed, copy the URL from your browser’s address bar. This URL should now reflect the filters you’ve applied, meaning anyone clicking the link will see listings that match the criteria specified in your ad.
5. Verify the Link:
- Before including the link in your Facebook ad, click on it to ensure it directs to the correct page and that all filters are appropriately applied. This check prevents any potential errors that might lead to poor user experience or irrelevant listings.
6. Include the Link in Your Ad:
- Place this URL in the appropriate field in your Facebook ad setup. This might be in the Instant Form where users are prompted to view more details, or directly in the ad copy if it instructs users to “Learn More” about the listed properties.
Tips on Optimizing Facebook Ad Campaigns
1. Reviewing Performance Metrics
Once there is sufficient data, you should review key performance indicators such as cost per lead, conversion rate, and overall engagement. This helps identify what elements of the ad are working well and what areas might need adjustments.
2. Adjusting Targeting and Placements
Based on the performance, you might consider tweaking the targeting settings, such as narrowing or broadening the geographic focus or adjusting the demographic specifications. If certain placements aren’t performing well, these can be adjusted or removed to focus the budget on higher-performing options.
3. Refining Ad Content
If the data shows that the ad is getting a lot of views but not many clicks, it might be necessary to revise the ad copy or visuals to make them more engaging or appealing to the target audience.
4. Testing Different Creatives
Even though A/B testing was initially advised against to simplify the process, once there is sufficient data and familiarity with Facebook Ads, testing different versions of ad creatives can be beneficial to determine what resonates best with the audience.
5. Budget Adjustments
Depending on the ad’s performance, you might consider increasing the budget to capitalize on successful aspects or decrease it if the ROI does not justify the current spend.
6. Lead Quality Assessment
Evaluate the quality of leads generated. If the leads are not converting into actual clients, it might be necessary to adjust the lead form to either collect more detailed information or include qualifying questions.
7. Continued Learning from Data
Use the ongoing data to keep refining the campaign. Look for patterns in the times of day, days of the week, or specific user interactions that might inform better scheduling or further targeting refinements.
By following these optimization strategies and defining “enough data” as the point at which clear patterns and actionable insights can be derived from the ad’s performance metrics, the tutorial guides users toward progressively refining their Facebook ad campaigns to enhance efficiency and effectiveness.
2 Comments
Thanks for sharing this informative article. It has really nice information.
Great Read! Thanks for the amazing Insights!