More Marketers may Turn to Online Performance Advertising

As marketers feel pressure to reach more consumers and measure ad campaign return on investment (ROI), it’s little wonder that many companies are looking at cost per lead (CPL) models. Pontiflex just issued its benchmark study on how companies plan to manage online marketing leads. A marketing lead is defined as a consumer who has “signed up to receive communication 107859_business_card_holder_1from a specific brand.” Marketers use a variety of tactics to communicate with marketing leads according to Pontiflex findings:

  • Brand/​community site 51%
  • e‑newsletter with deal 31%
  • Free trail offer 9%
  • Advocacy 5%
  • Catalog/​DVD 2%
  • Other 2%

In a CPL program marketers pay only for the “contact information, or lead, collected.”  The way Pontiflex sees it, ad campaigns should initiate contact with consumers by prompting only for basic data such as name and e‑mail address. Over time, marketers can gather premium data such as telephone numbers and geo-​targeted items. But all of this information gathering costs money. Pontiflex’s study reveals significant cost differences between industries when it comes to successfully capturing leads.

  • Consumer Packaged Goods: Basic data — $0.87 and Premium data $1.13
  • Travel: Basic data — $1.40 and Premium data — $2.50
  • Non-​Profit: Basic data — $1.33 and Premium data — $1.85
  • Health: Basic data — $0.60 and Premium  data — $3.36
  • Entertainment: Basic data  -$0.80 and Premium data — $3.00
  • Online Retail & Catalog: Basic data $0.59
  • Technology: Basic data — $0.43 and Premium data — $3.75

For now, it appears that consumers seeking information on retail or technology products are either more frequent online visitors, more likely to give up their identity or a combination of both factors. But as more consumers search for information online, marketers in a variety of industries can use CPL programs as one more tool in their campaigns to build their customer lists efficiently and inexpensively.

[Source: CPL Report, Pontiflex, August 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.