social media conversion rates

Millions of businesses use social media advertising as a marketing tool, but few know how to tell if their campaigns have performed well or not. So, what is a good conversion rate on social media? And how do you calculate the conversion rate of your social media ads? Before we answer these questions, let’s first define what exactly we mean when we’re talking about “social media conversion rates” so that we’re all on the same page. 

Social Media Conversion Rates 101

By definition, a conversion rate is the percentage of visitors who take a desired action on your website. In other words, conversions can vary in definition depending on the type of business you run. A website conversion can be as simple as the sale of a product on an e-commerce website or can be based on generating a lead such as filling out a membership registration, email subscription or “contact us” form.

We should note that although we usually consider conversions to be actions taken on websites, social media conversions can happen right on the social media platforms themselves! For example, Facebook’s Lead Ad Forms allow advertisers to capture information such as name, email, phone number, etc. from potential leads without leaving the site. Therefore, the definition of a social media conversion can vary greatly depending on the goal of your social media marketing campaign.

What is Considered a “Good” Social Media Conversion Rate?

While it can differ from business to business, a successful conversion rate for a social media advertising campaign is largely accepted to range anywhere between 2-5% (meaning that 2-5% of the people who click on your social media ads and arrive at your website should perform the desired action you want them to take).

Obviously, conversion rates can be lower or higher depending on the value being offered. For example, offering a free, high-quality e-book could have a higher conversion rate than asking someone to purchase something off your site (in the first case you’re giving away free value – in the latter, you’re asking for some hard-earned cash). Social media marketers should keep that in mind if they’re struggling with low conversion rates on their campaigns; perhaps consider reducing the burden of the ask. Instead of trying to sell directly, consider switching the “ask” of the campaign to “register for our email list” – once they’re on your email list, they’ll be further down the marketing/sales funnel and more likely to buy.

Which channels drive the best conversion rates?

Recent studies show that Google Adwords and Facebook Advertising are the top two channels when it comes to driving website conversions. Although Google Adwords has a slightly higher conversion rate, the overall return on investment is greater from Facebook Advertising. To explain what this means, consider this case study from Karen James on MOZ. Essentially, the much higher cost-per-click on Google Adwords made the cost-per-conversion much higher than what was achieved through Facebook.

To us, this makes perfect sense. When you advertise using Google Adwords, you reach your customers at a point when they’re ready to make a buying decision. If they’re looking up your product or service on the search engines, they’ve probably made up their mind they want it. The problem is, they don’t just see you – they see all of your competitors listed there as well, hence the premium you pay for the competition.

Facebook advertisements tend to be cheaper than Google adwords for a few reasons. First, the way you reach your target market is different. They’re not looking for you – you’re looking for them. As a result, if your targeting was successful and your ad finds its way into the newsfeed of someone looking for your product/services, they’re more likely to become a customer because you reached them before they saw all of your competition listed right next to you in the search engines. What’s more, there’s a lot more demographic and interest-based data offered up on social media just by the nature of the platform itself that can all be used to increase the effectiveness of your targeting.

How to Increase Your Social Media Conversion Rate

Last year, Atlas Communications worked with a local property management company who were looking to generate leads amongst prospective tenants looking to rent residential apartments. The results were incredible!

For the year of 2016 social media generated nearly 20,000 website clicks, meaning that 72% of their website traffic for the year was from social media. In this specific case a successful conversion rate would mean that a type of lead has been achieved.

Through social media, this company attained 3,156 leads, which averages out to be 263 leads a month! Google on the other hand only produced 264 leads for the year, averaging only 22 leads a month. Overall, the company saw a conversion rate of 16%!

That’s way more then the expected 2-5%.

So how did we do it? How did we exceed expectations to achieve a conversation rate of a whopping 16%? Now we don’t mean to lead you on, but there are a lot of things you can do from setting up the ad itself, to making important changes that will make your website more conducive to conversions. If you want help increasing the conversion rate of your social media marketing campaigns, contact us today! The best part is – it doesn’t have to cost more than what you’re already spending; it’s about making what you’re already spending, go further.

Atlas Communications is a Toronto social media marketing company specializing in social media branding, lead-generation, and results-driven campaigns for companies of all sizes. Contact our agency today for all of your social media marketing needs!

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