Pay-for-performance ad pricing models are catching on among marketers dealing with issues of measurability and audience engagement. Impression-based media buys are giving way, in some cases, to cost-per-lead advertising.
Cost-per-lead advertising brings a new dimension to lead generation. Rather than turning to brokers of generic sales leads, marketers can entice consumers to opt in based on specific ads—and only pay for valid sign-ups.
According to the “Cost-per-Lead Advertising Data Report” from Pontiflex, marketers in North America were most likely to engage those leads via brand or community sites (51%). E-newsletters (31%) and free trial offers (9%) were also popular engagement vehicles.
Cost-per-lead pricing varies by industry, and also by the amount of data consumers are willing to provide about themselves. “Basic fields” include such information as first and last names, e-mail addresses and postal addresses. “Premium” information, such as Twitter usernames and phone numbers, commands higher prices. On average, the cost per lead for basic info was $0.60 in North America between August 2008 and July 2009; the average premium cost per lead was nearly four times as high, at $2.27.
Advertisers in the travel and nonprofit industries saw the highest average costs per lead for basic fields, at $1.40 and $1.33, respectively. But the highest costs for premium fields were in the technology, health and entertainment industries, each paying at least $3.00 per lead.
“As is true for landing pages deployed in banner and search campaigns, collecting more information increases drop-off and reduces lead volume,” according to the report. For that reason, cost-per-lead advertising best practices recommend “capturing basic information during the first contact with the end consumer, and capturing additional information over time as the brand builds a relationship with the consumer.”
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Check out today’s other article, “Saving, Not Spending, this Holiday Season.”