Meta ad campaigns are optimized for a particular conversion goal
- impressions
- engagement
- clicks
- landing page visits
- lead gen
- purchases
However, most Meta marketers only use purchase ads, which also happen to be the most expensive — the average cost per acquisition (CPA) is about $20 USD.
Small businesses with narrow profit margins can’t afford to spend $20 to make a sale.
Instead, such businesses should use lead generation ads to collect email signups, and use email marketing automations or broadcasts to convert these leads.
Advantages
- Lead generation ads are much cheaper than purchase ads (CPL < $5)
- grow your email list, which is platform-independent
- better personalization and segmentation
- build a brand relationship through Welcome flow
Disadvantages
- no instant purchase
- requires lead nurturing to get sales