Does Social Media Advertising Really Work?


We have been building ad campaigns and lead generation campaigns on social media for over 6 years and have spent well over $1,000,000 generating leads for our clients. So the simple answer is yes, but we need to dive in a bit deeper to truly see the reasons why! So let’s take a look, does social media marketing really work?

First, the biggest reason that social media marketing works is because you have a captive audience to market to. What do I mean by that? Well it’s simple, you can make sure to get your ad in front of the right people at the right time that you specify! What that allows you to do is to make your ad budget go further. Think of it this way… Let’s look at a billboard for example. If you are marketing on a billboard, you’re going to be getting views from people that have zero interest in your product or offering. Meaning your budget is being wasted. What social media marketing allows is for you to only target those that you think will want your product or service. On top of that you can create what we call, direct response ads. Meaning you are purposely asking the potential client to do someting in return for something else. What this ultimately does is drive them to provide you with something, either their personal contact information and some additional details, or an email address or you are actually getting them to buy somethign via your website. All of this is considered direct response meaning they are doing something for you in direct response to your ad!

Ultimately this allows your budget to go extremely far. We are able to generate leads and purchases for our clients for as little as $2.35 per lead/purchase! This type of advertising is analytical and trackable and allows us to continuously optimize for our clients on an ongoing basis. In our opinion, it’s the best for of marketing there is right now!

Below is an example of an ad we set up and ran for real estate broker that has locations in Austin TX and in Los Angeles CA along with the statistics of the ad and it’s results!

The Results:

Ad Spend: $500 monthly

Avg Cost Per Lead (CPL) – $6.49

Income Per Month – $18,000

Closed Deals a Month – 3-4

As you can see the lead generated a significant amount of leads on a monthly basis with a conversion rate of around 5.5% and an income rate of 36 x’s the ad spend. That type of ROI is impossible with any other form of advertising!

We’ve been running ads for years, but we’ve been hyped on Facebook and YouTube for some time now and you can see why! Following and learning from other entrepreneurs and marketers, I’ve always been curious about certain campaign breakdowns. So this is why I bring you these examples. I want to give you an inside look at our processes and what works and what doesn’t! Let me know in the comments below if you would be interested in seeing more like this!

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