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29.08.2012

Lead generation. What is it?

Yevgeny Bykin

A new service is being actively developed on the modern digital advertising market called “lead generation”. The advertising accounts which are not so sophisticated are asking "What is it and why is it profitable?"

This technical wonder came to us from America and the west. It is the most developed kind of internet advertising there is. In 2011, this giant advancement came into our market. The volumes grew 2 to 2,5-fold. The growth of this advertisement product still continues, which proves its efficiency.

Lead = Action

You can find in any source on the topic that a lead is an action of a user on a website. This wording, though, doesn’t give us the whole picture of the subject. First of all, we should decide what the action is. In each individual instance it could be viewed differently, since nobody has cancelled an individual approach to products. Nevertheless, these specific categories do exist:

CPL – deliberately provided user data of the target audience you are interested in. When using such data efficiently, the company can not only increase the customer loyalty, but sales too.

CPA – useful actions of any type done by users: likes in social media, passing certain levels in a game or on a website, or uploading or downloading the information on web portals, websites, etc.

CPO – form of payment for the order in your internet shop, or a request for goods or services.

CPS – form of direct payment for percent payment method, when you establish a certain percent for each customer attracted.

Agreeably, lead generation is a process of aggregating traffic for a certain activity whether it is a purchase or collecting requests and contact information of the users interested.

New technologies dictate their own interaction routines. In the system “advertising account – lead generation platform – customer” one of the elements plays a decisive role, and it’s the webmaster. Of course, associations with websites or programming appear instantly, but the concept is much broader. The webmaster is really a person managing the traffic in a direction. A good webmaster is essentially an analyst who can determine the point of internet where their audience is concentrated.

Cui prodest?

Lead generation can’t be seen as magic or a universal tool. This service is surely not appropriate for everyone, but there are certain market segments in which lead generation is a profitable and successful solution. Here are examples of real and would-be advertising accounts:

 – Internet shops
 – Banks, insurance companies, financial intermediaries
 – Real estate agencies and developers
 – Service companies (medical, recreational, HR, tourist, as well as catering)
 – Online games

Now lead generation is used most intensely in the financial sector and internet marketing. There they have already developed the process and are making use of its advantages. Other advertising accounts are mostly getting familiarized with the new service.

Step by step

As in any other advertising campaign, the first step of lead generation is the marketing analysis of a company, its products and competitors. On the basis of this analysis, the price and general direction of work are shaped. One of the decisive factors of developing a successful lead generation campaign is a skillful landing page. Our agency can make recommendations on creating a landing page or improving the present one to any client.

Finally, all advertising materials are ready, the landing page corresponds with all requirements, and all calculations are finished. To start, it is necessary just to make technical integration and then trace the campaign in online mode.

What happens after starting?

The users who are interested in the campaign go to the landing page they are filling, in making thus a lead. This happens through banners, teasers, context or any other type of advertising complying with laws of the Russian Federation. Having fulfilled all the fields, the users press the submit button and activate the so-called thanking page, gratitude for registration or downloading up an application. The code of the lead generation network which counts your leads is located here. This very activity (which had already been coordinated with the client) is to be paid. Finally, the data about a potential client are redirected to the CRM system of the customer. The statistics prepared are sent after applications to the agency and to the bank. Thus full transparency for the client is reached. Then everything is in the advertising account’s hands.

Peculiarities of lead generation

As with other kinds of digital advertising, lead generation has several peculiarities which are its advantages. First of all, it is sensible traffic aggregation. We mean here that the webmasters provide not only banner and search traffic, but the traffic from topical websites too. It’s hard to deny that the dedicated traffic is vitally important for any client because it allows finding its own clients using all capabilities of the network.

The next hallmark is managing and setting lead generation campaigns. Their inherent part is continuous quality monitoring of the traffic taken up, flexible settings of marketing programs, as well as processing the results online.

Of course, probably the most valuable moment for any advertising account is converting the inbox traffic into orders. Finally, the advertiser reliably receives the result which they needed. This could be increasing the number of goods sold in an internet shop, securing the guaranteed number of online sales or the volume of sales planned within the company.

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