How to reduce your cost per lead using dynamic ads

Platforms like Facebook and Google are increasingly looking to control more of your budget using automation.

Google has recently launched Performance Max, which aims to use A.I to help marketers to target their audience at the right time, on the right channel, with very little human input required.

Facebook has been playing around with something similar for years. Whilst it is no where near as advanced as Google’s Performance Max, we’re seeing some strong results regardless.

What it is?

Similarly to Google, you can load-up Facebook with multiple headlines, images, videos and text and it’ll find the best combination of these to place in front of your audience.

More impressively, it can change the combination based on the data it holds on each user.

For example, it knows that ‘Get a free quote’ may appeal to one user, whereas ‘Save 30% now’ will appeal to another. It bases this on how each user interacts with ads on the platform, knowledge that is unavailable to those outside of Facebook.

Apply this same process to the image, video and text elements of an ad, and you have a seriously powerful tool at your disposal.

What does this mean for marketers?

This isn’t new. Facebook has been offering dynamic ads for a while, and each time they push it, we test it. This is the first time we’ve seen DCA give a significant improvement in Cost Per Lead vs creating multiple ads manually.

The two campaigns below were targeting a similar audience (home improvements), but the campaign highlighted in yellow used DCA, whereas the other used 3 manually created ads.

The highlighted campaign saw a significantly lower Cost Per Lead. Both were targeting a large broad audience in the UK.

As with everything, there are drawbacks. Such as the limited reporting on results available.

However, if you’re looking to reduce your CPL without sacrificing volume, this definitely works.