Facebook advertising expenses surge by 21% as lead campaigns flounder, while traffic ads flourish
In a comprehensive study by WordStream LocaliQ, the performance of over 1,000 Facebook advertising campaigns across various industries was examined from April 2024 to June 2025. The results, published on September 8, 2025, offer valuable insights into the evolving landscape of Facebook advertising.
Industry Experts Emphasise Quality Over Quantity
Industry experts stress the importance of focusing on lead quality rather than quantity. Service-based businesses, in particular, find better performance through targeted lead generation campaigns. This approach is crucial as economic pressures, such as inflation and tighter household budgets, impact certain industries more severely, particularly home improvement and personal care sectors.
Performance Divergence Between Traffic and Lead Campaigns
Traffic-focused Facebook campaigns showed an 8.9% year-over-year improvement in click-through rates, with a current rate of 1.71%. Despite this, lead generation campaigns experienced a 11% decrease in conversion rates, with the average cost per lead climbing 21% to $27.66.
Adapting to Privacy-First Advertising Strategies
Apple's App Tracking Transparency and evolving data collection policies require advertisers to adapt their targeting strategies, potentially impacting conversion efficiency. Privacy-first advertising strategies will become increasingly important as data collection restrictions evolve.
The Rise of Performance and Influencer Marketing
Many well-known brands increasingly use influencer and performance marketing combined. Tools like "hi by medialabel" facilitate campaigns by matching brands with influencers effectively. Platforms like monday.com help manage leads collected via Facebook lead-generation ads.
The Advantages of Facebook's Engaging Ad Formats
Facebook's visual nature and social context provide unique advantages for certain business types. Consumer-facing brands benefit from Facebook's engaging ad formats. The platform's expansion into new ad formats and placement options offers growth opportunities for advertisers.
The Impact of Cost Pressure and Increased Competition
Increased competition for advertising space contributes to rising costs across the Facebook platform. Advanced tracking implementation becomes crucial as advertising costs rise. Tighter targeting parameters and enhanced creative testing become essential for maintaining return on investment.
Top-Performing Industries
Shopping, Collectibles & Gifts emerged as the top-performing industry for traffic campaigns, with a click-through rate of 4.13% and the lowest cost per click at $0.34. Restaurants & Food demonstrated exceptional performance in lead generation campaigns, with an 18.25% conversion rate and the lowest cost per lead at $3.16.
Interestingly, specific companies that stood out with lead-generation campaigns on Facebook in 2025 are not directly named in the available search results. However, it is noted that the use of influencer and performance marketing combined, along with tools like "hi by medialabel" and platforms like monday.com, facilitates effective campaigns.
The Importance of Balance
Combining brand awareness traffic campaigns with targeted lead generation efforts can optimise overall marketing funnel performance. Experts recommend careful implementation of automated features to maintain lead quality. Advertisers should reassess campaign objectives based on business goals.
Maintaining Advertising Investments During Economic Uncertainty
Businesses maintaining advertising investments during economic uncertainty may gain market share as competitors reduce spending. Meta's continued AI development promises improved targeting capabilities, offering benefits through automation with tools like Advantage+.
In conclusion, the analysis provides a comprehensive overview of the shifting trends in Facebook advertising, emphasising the importance of quality over quantity, the impact of privacy-first strategies, and the benefits of combining traffic and lead generation campaigns for optimal marketing funnel performance.
