SMALL BUSINESS MARKETING BLOG
Small Business Guide to Lead Generation Ads On Facebook
Are Facebook Lead Generation Ads Right for Your Business?
Imagine capturing high-quality leads while your audience scrolls through their favourite social media platform—no interruptions, no extra clicks, and no clunky redirects. Facebook lead-generation ads make it possible.
Whether you’re a small business owner looking to grow your email list, a service provider eager to book more consultations, or a marketer launching your next big campaign, these ads are a game-changer.
But here’s the thing: not all lead-generation campaigns are created equal. To truly tap into their potential, you need to know how they work, their benefits, their pitfalls, and how to set yourself up for success.
In this guide, we’re diving deep into everything you need to know about running Facebook lead-generation ads—from what they are to how to make them work for your business. Get ready to transform your social media strategy and start turning clicks into customers!
What are lead generation ads?
Lead-generation ads on Facebook are designed to help businesses collect information from potential customers directly within the Facebook platform. Unlike traditional ads that redirect users to an external landing page, lead-generation ads keep the entire interaction on Facebook or Instagram, using a lead form on Facebook, making the process super user-friendly.
When someone clicks on a lead-generation ad, they are presented with a form—known as an Instant Form—where they can submit their information such as name, email address, phone number, or other information relevant to the business. These forms are often pre-filled with data from the user’s Facebook profile, which reduces friction and increases the likelihood of completion.
These ads are typically used to achieve goals such as growing an email list, collecting inquiries, scheduling appointments, or generating interest in a product or service. They are especially popular for businesses that want to gather leads for follow-up marketing efforts, such as sending promotions, nurturing through email campaigns, or scheduling sales calls.
Lead-generation ads also provide flexibility in terms of targeting. Businesses can use Facebook’s robust audience targeting options to ensure their ads are seen by the right people, based on factors like demographics, interests, behaviors, or even custom audiences built from previous customer data.
A key advantage of lead-generation ads is that they streamline the process for both businesses and potential customers. Users don’t have to leave the platform, which reduces drop-offs, and businesses can track and manage leads more easily using Facebook’s tools or by integrating the leads directly into their CRM system.
What is the difference between lead generation and conversion ads on Facebook?
While both Facebook lead-generation ads and conversion ads are designed to drive meaningful actions from users, they differ significantly in how they function, the user journey they create, and the types of goals they are best suited for.
Facebook Lead-Generation Ads
Lead-generation ads focus on capturing user information directly on the Facebook platform. When someone interacts with a lead-generation ad, they are presented with an Instant Form within Facebook or Instagram where they can provide details like their name, email, phone number, or other custom fields. These ads are ideal for businesses that want to build a database of prospects without requiring users to leave the platform.
Because the entire interaction happens within Facebook’s ecosystem, lead-generation ads are highly streamlined, making it easier for users to complete the process. This ease of use often results in a higher volume of leads, though they may require additional follow-up or qualification to ensure they align with your target audience.
Lead-generation ads are best suited for campaigns that aim to:
Collect inquiries for services.
Build email or phone contact lists.
Generate interest in events like webinars or consultations.
Offer lead magnets, such as free guides, eBooks, or discounts.
Facebook Conversion Ads
Conversion ads, on the other hand, are designed to drive users to take a specific action on your website or landing page. These actions are tracked using the Facebook Pixel or Conversions API, which allows you to measure the effectiveness of your ad based on events such as purchases, form submissions, or other desired outcomes.
When a user clicks on a conversion ad, they are redirected to an external page where they can learn more about your product or service and take the next step in your sales funnel. Conversion ads give you greater control over the user experience, as you can design your landing page to provide in-depth information, visuals, and calls-to-action tailored to your audience’s needs.
Conversion ads are better suited for campaigns that aim to:
Drive purchases directly from your website.
Encourage sign-ups for events or subscriptions on your site.
Generate detailed inquiries through longer forms on landing pages.
Provide users with a comprehensive experience that explains complex products or services.
Key Differences between Meta lead gen ads and conversion ads
Location of Action: Lead-generation ads keep users within the Facebook platform, while conversion ads redirect them to an external site.
Ease of Completion: Lead-generation ads offer a frictionless process with pre-filled forms, whereas conversion ads may require more effort from the user to complete the desired action.
Depth of Information: Conversion ads allow for more extensive messaging and content on a landing page, making them better for complex offerings.
Lead Qualification: Leads from conversion ads are often more qualified since users have engaged with a more detailed webpage, while leads from lead-generation ads may need additional nurturing.
Tracking and Data: Lead-generation ads rely on Facebook’s internal tools to manage leads, while conversion ads leverage the Facebook Pixel to track user actions on external websites.
By understanding these differences, businesses can choose the ad format that best aligns with their objectives, whether it’s building a large pool of leads quickly or driving high-quality conversions through a carefully crafted user journey.
What are the benefits of lead-generation ads on Facebook
As a performance marketing option, we love lead-generation ads for a few reasons.
It’s an easy journey for a user
Anyone who sees your ad can fill in their details without having to leave their chosen platform (be it FB or Instagram). Whereas people can easily dropout of the process if they visit a landing page, by keeping them on the social media platform, often they are more likely to complete a form fill on Facebook.
It’s a great option if you don’t have an appropriate landing page
Sometimes, you need to launch a lead generation campaign quickly and don’t have the time or the resources to create a landing page, form and tracking for the promotion. By choosing to host your form on Facebook you negate the need to do all of this setup.
Tracking is straightforward
Another key advantage is the straightforward tracking. Because the entire process takes place within Facebook’s ecosystem, tracking your campaign results is easy and transparent. You won’t encounter common issues like cross-domain tracking or data loss. Facebook Ads Manager provides accurate, real-time metrics on performance, allowing you to monitor your cost per lead, total leads collected, and overall conversion rates confidently.
You can integrate leads straight into your CRM
Leads can be sent directly into your CRM for immediate follow-up, which is essential for nurturing prospects effectively.
If your CRM doesn’t have a direct integration with Facebook, third-party tools like Zapier can be used to transfer leads into your email marketing or CRM system automatically. This ensures that no lead is left unattended, improving your chances of turning prospects into paying customers.
Customisable forms
The forms themselves are highly customisable, allowing you to collect the specific information you need.
Whether you’re running a simple campaign to gather contact details or a more complex one requiring qualifying questions, Facebook’s tools give you the flexibility to design forms that align with your campaign objectives. This flexibility also helps businesses pre-qualify leads, ensuring that the leads they capture are aligned with their target audience.
Save on external costs
Lead-generation ads can be a cost-effective solution. By keeping the entire process on the platform, you avoid additional expenses associated with website hosting, landing page design, and development. This on-platform approach also tends to drive higher engagement rates, which can reduce your overall cost per lead and increase the return on investment for your campaigns.
What are the pitfalls of lead generation ads on Meta?
So, while lead generation can be a great option there are areas that you should consider before opting for lead gen campaigns.
Lower quality leads (if forms are basic)
One common challenge is the potential for lower-quality leads, especially if the form is too basic.
The easier it is to complete the form, the more leads you’re likely to generate. However, those leads may not always be well-qualified.
A person filling out a short form on a whim, without much thought or commitment, may be less likely to convert than someone who has taken the time to visit your website, study your offering, and fill out a more detailed form. This means you may need additional steps in your follow-up process to separate high-intent leads from less serious prospects.
Limited space for selling
When you use a lead generation ad, you need to get all of the information that someone needs to make a decision on your ad and your form page.
Unlike a landing page or website, which allows you to present detailed information, lead-generation ads and forms require you to condense your messaging into a much smaller space.
If your product or service is complex or requires a more in-depth explanation, this format may not provide enough room to communicate your value proposition effectively.
In such cases, running a conversion-based campaign that drives traffic to a well-crafted landing page may be a better choice.
You need to offer something in return for data
Successful lead-generation campaigns often depend on offering value in exchange for a prospect’s information.
This could be a lead magnet, such as a free guide, checklist, webinar, or exclusive discount. Creating an effective lead magnet requires thoughtful planning to ensure it resonates with your audience and aligns with your business goals. Without an enticing offer, motivating users to part with their personal data can be challenging.
Stuck for ideas? Discover more about lead magnets here.
You need infrastructure
It’s also important to recognise that running lead-generation ads is just the first step in the process. Without the right infrastructure for managing and nurturing leads, your campaign’s success may be short-lived. You need a robust follow-up strategy, whether it’s an automated email drip campaign, an invitation to a webinar, or a direct outreach process.
Understanding your sales funnel and how new leads will move through it is essential to maximising the return on your investment in lead-generation ads. Without a clear plan, you risk losing valuable leads due to slow or ineffective follow-up.
What do I need in place to run lead-generation campaigns?
Yep, we know you’re chomping at the bit to get your lead generation campaigns in place, but you need to set up a few things first.
Your sales funnel
We’ll say it straight: your lead generation campaign is only as good as your follow up process. We tend to find that the best campaigns work when the funnel is already tested.
For example, if you’re already driving leads through an online calculator and have a well-optimized email follow-up sequence, we recommend leveraging that proven funnel for your Facebook lead-generation ads. Consistency and familiarity in your follow-up process can significantly improve your conversion rates.
If you don’t have a funnel set up yet, take some time to map out your customer journey. Consider what might entice a Facebook user to share their information with you and what follow-up actions you’ll use to nurture them. Will it be an email drip campaign, a phone call, or an invitation to a webinar? Having a clear plan for what happens after a lead is captured is essential for maximising your results.
A privacy policy
Since lead-generation ads collect personal information, Meta requires that your business has a privacy policy in place. This policy should clearly outline how you collect, store, and use data. It’s not only a compliance requirement but also a way to build trust with your audience by showing that you take their privacy seriously.
Make sure your privacy policy is easily accessible and up to date. When setting up your lead-generation form, you’ll need to include a link to this policy. For more information about Facebook's privacy requirements, you can visit their guidelines here.
Great Ad Creatives
Your creative is the hook that grabs your audience’s attention and gets them to engage with your ad. Just like any other Meta ads campaign, your visuals and copy need to stand out in a crowded feed.
Focus on creating eye-catching images or videos paired with compelling, benefit-driven copy that speaks directly to your target audience. Whether it’s a bold headline, an engaging video, or a strong call-to-action, your creative must be tailored to resonate with your audience and clearly communicate the value they’ll receive by filling out your form.
A Lead Magnet or Offer
A strong lead-generation campaign often relies on a valuable incentive to encourage users to share their information. This could be a free resource like an eBook or checklist, an exclusive discount, or access to a webinar or consultation. Whatever you choose, make sure your offer is relevant to your audience and aligns with their needs.
CRM or Lead Management System
You’ll need a system to capture and manage the leads generated by your campaign. Facebook integrates with many popular CRM platforms, or you can use tools like Zapier to automate the process of sending leads to your email marketing or sales system. Having this infrastructure in place ensures that no lead slips through the cracks and allows you to respond to inquiries promptly.
By putting these elements in place before launching your lead-generation campaign, you’ll set yourself up for success. A well-prepared foundation ensures that every lead you capture is followed up on effectively, helping you turn clicks into conversions and maximise your return on investment.
Whatever your lead generation goals, Facebook advertising can help you reach new audiences, retarget existing ones and convert interest into custom.
Looking for more help with your Facebook ads? Why not consider our Meta Ads training to help you get more from your marketing spend. Want more support? Our Facebook ads agency services might be for you.