The Basics of Lead Generation with Meta Ads

One of my biggest advertising specialties is running lead generation ads through Meta Ads. It’s an exciting and fascinating area and I’ve learned many lessons about it over the last ten years or so from managing hundreds of campaigns. Here are some of the most important things to understand about these ads based on some of the most common questions I hear. I hope you find it helpful.

What’s the basic proposition of Meta Ads for leads?

Meta advertising offers businesses the opportunity to advertise for leads through enormous channels such as Facebook, Instagram, and Audience Network (a network of apps that partner with Meta for the display of ads). This is meant to help businesses find customers for their services or products. The goal of lead ads is not only to create awareness, but also to attract interest, so that the viewer of the ad engages to get more information.

How do lead ads work with Meta advertising?

First, at its most basic level, the Meta advertising system is designed to show ads to users of Facebook, Instagram, and other channels, including partner apps. The advertiser is typically charged by impression, which is simply an appearance of the ad. So, regardless of whether the viewer clicks or engages with the ad, the advertiser is charged just to have it seen.

The next thing to understand is that the Meta advertising system is built to deliver “results” within a certain menu of options—leads being one of them. How does it do that? Certainly you’ve heard how companies like Google and Facebook offer their online services for free while tracking our interests and online behaviors. They certainly do, although not in the creepiest way you might think. (Their tracking is meant to exclude PII—personally identifiable information, thereby anonymized.) That massive collection of data helps their systems deliver ads where they are more likely to be effective. For example, if a user tends to like a certain brand of shoe and also tends to shop online on Sundays, those could be factors in what ads are delivered to that user—and when.

What are the options for how leads can flow in?

This part is interesting, as there are several options. They have stayed mostly the same for several years, but variations and combinations of them have appeared more recently. Here are the basic options:

Phone call – There is a CTA (call-to-action) button on the ad that initiates a phone call when tapped. It’s uncomplicated and best for those who simply want phone calls and are usually able to answer.

Messenger or WhatsApp conversation – The CTA button on the ad initiates a conversation in Messenger or WhatsApp.

Website / Landing page – The CTA (call-to-action) button on the ad leads to a web page that is intended to capture a lead and send tracking data back to the Meta Ads system so the result is recorded. (This tracking is done through the Meta Pixel code or the Meta Conversions API.)

Instant Form – The basic idea of the instant form is that the viewer of the ad can submit information to the advertiser, such as their contact information and (optionally) answers to specific questions. The form is essentially an extension of the ad, and it opens very quickly when someone taps on it from their smartphone. User data and contact info are often auto-completed by Meta, making it a very easy, low-friction experience.

Variations / Combinations:

As of late, the Meta Ads Manager panel offers lead flow options under the headings of “single” or “multiple.” Single options include those listed above—Messenger, WhatsApp, Website, Instant Form, and Phone Call.

Here are some of the multiple/ combination options:

Website and Calls – With this option, the ad system decides on a user-by-user basis whether the ad leads to a website or a direct phone call. Meta predicts which path that person is more likely to complete and shifts delivery toward the cheaper completed result.

Website and Instant Forms – With this option, the ad system decides whether the ad leads to a website or an instant form, again based on predicted performance.

Instant Form and Messenger – With this option, the ad system decides whether the ad leads to an instant form or Messenger. This offers a good balance: quick data capture combined with the ability to start a conversation.

Which lead action / lead flow works the best?

Which lead action to choose should be based on what’s best for the business. Some businesses prioritize incoming phone calls above all else, so they might simply choose the call button option. Others are adept with Messenger and find it to be their best channel for nurturing and qualifying new leads. (Messenger does have an impressive array of options for lead nurturing and customer communication.)

Then there are businesses that have finely tuned website landing pages, so they prefer all clicks or taps to go directly there. (Websites are certainly the most controllable and customizable place to send traffic.)

My go-to lead action, however, is usually the instant form. Getting the contact information of an interested prospect allows you to follow up, try to close the sale, or stay in touch to maintain the relationship. Also, after the form is submitted, there is a confirmation page with another call-to-action button that can initiate a phone call, go to a website or scheduling page, or initiate a file download.

What is the cost for running lead ads and how am I charged?

The Meta Ads system is generally pay-per-impression, which means you pay based on how many times your ad is seen. It doesn’t matter what clicks or other engagements happen (or don’t happen)—you are paying for visibility. More dollars per day simply mean more eyeballs seeing the ad.

That’s why it’s important to have the best offer and ad you can create. Since you’ll pay either way, it’s better to get a response than not. You can test different ads and offers against each other to see which performs better.

What’s the difference between lead ads and traffic ads?

This is a very important distinction and the cause of a lot of wasted money from inexperienced advertisers. A common mistake is optimizing for “clicks.” A novice might consider a click to be a genuine engagement and an indication of interest. However, if the system is optimized for clicks, it will try to deliver them for the lowest possible cost across platforms like Facebook, Instagram, and Audience Network. Unfortunately, many accidental clicks happen—especially on certain placements like Audience Network. Even more concerning, something called click fraud can occur, resulting in non-human (bot) clicks.

If you choose traffic and clicks as your conversion goal, the system may find you the lowest-quality traffic available (because it’s cheaper), which can waste your budget.

It’s important to give the system a meaningful goal. The two most meaningful goals are leads and sales. Be cautious with the others.

How does ad targeting work?

Ad targeting methods have changed significantly in recent years. In the past, it was common to target Meta ads by choosing interests, behaviors, and demographics. These days, the system has much more power to discover targeting angles on its own—provided that a meaningful goal is chosen.

Choose leads as the performance goal, set the necessary limiters like language and location, and then let the system test and learn who is most likely to convert.

Aside from that, you can add audience “suggestions,” such as people who have visited your website or engaged with your Facebook or Instagram content. These can help the system get a head start.

How do I judge if the ads are working?

There are many metrics to look at when running Meta ads—cost per lead, cost per thousand impressions (CPM), and others—but the most important metric is profitability. Take a holistic view of the campaign. Consider return on investment, lifetime customer value (LCV), and even referrals that new customers may generate. Keep good records about the leads, costs, clients, and revenue.

Is it best to use ads with videos?

This is a question I get often, probably because the value of video content is commonly extolled these days. Video can be useful, particularly when something needs to be demonstrated. But many types of ads don’t require it. For example, most people already understand what a plumber does—they don’t necessarily need to watch a video about plumbing.

For many types of lead generation, a simple and clear static image works very well. Sometimes a small carousel of images can also be effective. The key is that the viewer quickly understands what’s being offered and why it matters.

What are some general tips for success?

Here are four tips based on my experience:

1. The ad, offer, and proposition should be very easy to understand. At a glance, viewers should feel, “I get it,” and either be interested or not.
2. Thinking aggressively can help. Imagine your business is on the edge of collapse and you are desperate for responses—what would you offer? Since you are paying for impressions either way, it can be worth pushing harder on the offer.
3. It’s always a numbers game. Meta lead ads can produce some low-quality leads, missed calls, or appointment no-shows—but strong, high-quality leads are often in the mix as well.
4. Think of lead generation as relationship building. Even if someone isn’t ready now, they might be later. Use follow-up methods like calls, emails, texts, and remarketing. Keep it respectful and provide real value. And as a simple rule: don’t annoy people with excessive follow-up.

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