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Marketing Leads

Written on
Jan 2, 2009 
Author
Edward Barrera  |
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Marketing Leads

performance_marketing_works_small.jpgADOTAS — Zephrin Lasker, CEO of Pontiflex, starts the year looking forward:

“During the last recession, online advertising fell by 27%. This is not surprising. The Morgan Stanley Research report “Internet/Technology Trends” shows that the correlation between the GDP and Advertising Spend is as high as 81%.

However, not all advertising was affected.

High ROI forms of advertising saw a sharp uptake from 2000 -2002. In particular, search advertising grew by a staggering 820% in that time period. Marketing dollars moved away from CPM advertising to advertising purchased on CPC pricing models.

The shift was primarily driven by the fact that CPC advertising allowed advertisers to pay for clicks and not just impressions. Needless to say, since then CPC advertising has grown at a fast rate. According to eMarketer, search engine marketing will account for as much as 40% of Internet advertising spend in 2008.

CPC advertising was ideally suited to meet marketer needs during the 2001 recession. However, during the 2008 economic downturn, CPC marketers face a variety of problems such increasingly expensive keywords, a lack of complete transparency and the ability to measure ROI effectively.

While CPC campaigns deliver broad reach and will continue to be an integral part of online marketing plans, advertisers can no longer rely solely on them to increase marketing ROI. Just as CPM advertising gave way to CPC advertising during the last downturn, marketers will move up the ROI hierarchy and shift investments from CPC campaigns to CPL advertising, which allows them to pay only for qualified leads.

Within the Cost-per-Lead advertising market, we will see a slowdown in the sales leads market. Sales leads are generic leads generated on the basis of demographic criteria and resold to multiple advertisers. They are typically found in industries such as real-estate and insurance, which have been badly affected by the economic downturn.

We will however see a sharp increase in the marketing leads segment of CPL advertising. Marketing leads are generated for a particular brand. They are never resold. Marketing leads contain basic information like First Name, Last Name and Email address – information that the marketer can use to engage the consumer at multiple touchpoints.

Marketing lead campaigns were not possible until only recently because of a lack of transparency in the lead generation market. Transparency is critical for a marketing lead campaign. Transparency allows marketers to know where their leads are coming from. They can protect their brand integrity by ensuring that their offer runs in relevant environments. They can map leads to their sources and increase returns even further.

Advertisers will use marketing leads to build a responsive pipeline of consumers. Like marketers at Mercedes, Gap and American Express, they will then engage these consumers using community sites and newsletters.

2009 will be a year when advertisers engage consumers in a relevant way, and pay only for returns. It will be a sensible year.”

– Express your opinion, comment below.





Reader Comments.

Actually, BBH isn’t the first agency to try this ploy. If uncertain memory serves, Cabell Harri’s now-defunct firm called “Work” not only had its own brands, but placed a retail store on it premises to sell its own, and client brands. By the way, one of those products was a house-brand beer. Come to think of it, for some reason when agencies decide to go this way, they always include a beer. Why do you suppose that is?

Posted by Jef Loeb | 1:41 pm on January 2, 2009.

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