Introduction
In a recent project, a home improvement business in the USA aimed to generate high-quality leads and drive revenue growth through digital advertising. Using only Facebook Ads, the campaign delivered 306 qualified leads in just 14 days with an ad spend of $2,899, at an average cost per lead of $9.48. This initial effort generated $15,000 in revenue, yielding a strong return on investment (ROI) of 417%. Over the next five months, the business scaled to $70,000 in revenue, showcasing the power of strategic Facebook advertising in the home improvement industry.
The Challenge
The home improvement business needed to quickly generate qualified leads—homeowners interested in services like kitchen renovations, bathroom upgrades, or flooring installations. The market was competitive, with many businesses vying for the same audience on Facebook. The budget of $2,899 for the initial 14-day campaign required a highly efficient strategy to achieve a low cost per lead while ensuring the leads were high-quality and likely to convert. Additionally, the landing page needed optimization to convert ad traffic into actionable leads and sales.
Understanding the Demographics
The target audience was homeowners in the USA, aged 30–55, with a household income of $80,000–$150,000 per year. They were primarily suburban families or couples interested in home improvement projects to enhance their living spaces. These individuals were active on Facebook, often engaging with home decor pages, DIY groups, and local service providers. Many were in the consideration stage, researching options for renovations, making them ideal candidates for lead generation campaigns. Understanding their behavior—seeking inspiration and trusted providers on social media—guided the ad strategy.
The Strategy
A focused Facebook Ads strategy was implemented to generate leads and drive revenue growth:
- Lead Generation Campaigns: Facebook Lead Ads were used to capture leads directly on the platform, minimizing friction. The lead form collected essential information like name, email, phone number, and project type (e.g., kitchen remodel, flooring). A compelling offer—“Get a Free Quote for Your Dream Home Project!”—was used to attract submissions.
- Precise Audience Targeting: Ads targeted homeowners based on demographics (age 30–55, income $80K+), interests (home improvement, interior design, DIY projects), and behaviors (recently moved, engaged with home service pages). Lookalike audiences were created from the business’s existing customer list to expand reach to similar high-intent users.
- Engaging Ad Creatives: Ad creatives featured high-quality visuals of completed home improvement projects (e.g., modern kitchens, luxurious bathrooms), paired with testimonials from satisfied clients. Video ads showcased the transformation process, highlighting the business’s expertise and reliability.
- Landing Page Optimization: For users directed to the website, the landing page was optimized with a clear call-to-action (e.g., “Request Your Free Quote”), fast load times, and trust signals like customer reviews and certifications. A simple form ensured high conversion rates.
- Retargeting for Conversions: Retargeting campaigns were set up to re-engage users who interacted with the ads or visited the landing page but didn’t submit a lead form. These ads offered a limited-time discount (e.g., “10% Off Your Project If You Book This Week!”) to drive conversions.
Initial Results: 306 Qualified Leads in 14 Days
The campaign delivered impressive results in the first 14 days, generating 306 qualified leads with an ad spend of $2,899, at an average cost per lead of $9.48. These leads resulted in $15,000 in revenue, as several leads converted into booked projects (e.g., kitchen remodels averaging $5,000 per project). The return on investment (ROI) for this initial campaign was 417%. Key metrics included a click-through rate (CTR) of 5.2%, driven by the visually appealing ad creatives, and a lead-to-sale conversion rate of 10%, reflecting the quality of the leads.
Scaling Growth: $70,000 in Revenue Over 5 Months
Over the next five months, the campaign was scaled to drive consistent lead generation and revenue growth. By optimizing ad creatives, refining audience targeting, and increasing the ad budget strategically, the business achieved $70,000 in total revenue. With a lead-to-sale conversion rate of 10% and an average project value of $5,000, this revenue reflects approximately 14 projects booked, requiring around 140 leads. The cost per lead remained low, averaging $10.50, thanks to ongoing optimization. The CTR improved to 6.1%, and retargeting campaigns contributed 30% of the total conversions.
The Role of Facebook Ads in Scaling
Facebook Ads were the sole channel used, driving 100% of the leads and revenue. Lead Ads minimized friction, achieving a 15% higher submission rate compared to website forms. Lookalike audiences scaled reach effectively, contributing 50% of the new leads in the five-month period. Video ads showcasing project transformations resonated deeply, achieving a 6.1% CTR by month 5. Retargeting ensured high-intent users converted, while the optimized landing page maintained a steady lead-to-sale conversion rate.
Performance Metrics Breakdown
In the initial 14-day campaign, the ad spend of $2,899 generated 306 leads at $9.48 each, resulting in $15,000 in revenue and a 417% ROI. Over the next five months, the cumulative revenue reached $70,000, with an estimated 140 leads at $10.50 each, implying an additional ad spend of $1,470. The total ad spend over the period was approximately $4,369, yielding an overall ROI of 1503%. The average CTR across the campaign was 5.8%, reflecting the effectiveness of the ad creatives.
Key Takeaways
This case study highlights the impact of strategic Facebook advertising in the home improvement industry:
- Facebook Lead Ads are highly effective for generating low-cost, high-quality leads with minimal friction.
- Precise audience targeting and lookalike audiences can scale lead generation efficiently.
- Engaging video ads and testimonials build trust and drive engagement in a competitive market.
- Retargeting and landing page optimization are critical for converting leads into sales.
Ultimately, the home improvement business generated 306 qualified leads in 14 days and scaled to $70,000 in revenue over five months, demonstrating the power of data-driven Facebook ad strategies. Ready to grow your business with targeted lead generation? Let’s connect!
