Over the past decade or so, social media, and specifically paid social as a platform for attracting new leads has become an important part for most company’s digital marketing strategy. Like pay per click (PPC) leads, the quality and quantity of leads can vary depending on your experience of implementing these ads.
Property investment companies will want to make sure they are getting the most out of their marketing budget. So, how should paid social be approached, and how effective is it against other lead generation methods such as PPC?
Paid social involves targeted ad placement on social media channels, the most popular of which being Facebook, whilst social networks such as Instagram also serve a strong purpose when promoting the visuals of a property. Typically, these ads will be run with a view of attracting new leads, operating in a similar fashion to PPC ads.
The fact is, most property investment companies will run paid social ads, though success in this market varies. The importance is on how your budget is allocated, and your expectations of lead quality.
As a simple overview and from our experience, lead quality in the property investment market is usually ranked as follows:
PPC leads are usually the most likely to convert. These leads have actively searched out your investment, or a similar project, and are likely to have an active interest in investing. When considering that most people search for property investments on Google, you are naturally more likely to get engaged investors through this channel.
Email leads, when leveraging a property-focussed email marketing database can often be a good source of leads. However, the quality can vary here depending on the source provider, so it is not as reliable as PPC leads.
Whilst social leads are usually the most challenging to sell your investment to, they are often the cheapest lead source. So, whilst the quality of the leads obtained via social media is usually weaker, you get more leads for your money. The major benefit here is that the customer is receiving opportunities directly from you going forwards, instead of having to leverage an email database where the customer will be seeing new opportunities daily. It reduces the chances of your investment getting ‘lost’ in the crowd.
Comparing PPC and social leads
This raises the question, where should your marketing budget be allocated?
Both PPC and paid social leads vary in quality and quantity. Knowing where to distribute your budget is key to successful lead generation in this market.
As touched on prior, social leads are cheaper than PPC leads. You will often find they are also easier and quicker to obtain, and you are not competing directly with other companies or agencies in your niche for the same leads, as is common in PPC.
Given their lower price point, your expectations for converting these leads into investors should be lower. However, your primary focus should be on ROI, so even if the conversion rate and time is lower than other lead generation methods such as PPC, when looking pound for pound, it can prove to be highly cost effective.
When considering the long-term benefits of having a larger client database that you can continue to keep informed and market your property investments to for years down the line, the benefits of capturing more cost-effective social leads begins to become clear.
A recommended approach to paid social
We recommend that property investment companies use a multi-channel approach to lead generation, including a mix of both PPC and paid social leads.
Most property investment companies will use a marketing agency to obtain social leads, and often agencies will charge you a fixed price per lead. We feel that agencies often over-charge the client, so we do things a bit differently.
Here at REMM, we charge you the cost price for a lead with an additional percentage service fee. We do this as it is fairer and more cost-effective for you.
If you would like to find out more information about our approach to paid social lead generation, please do not hesitate to get in touch with us. We would love to hear from you.