Thursday, June 19, 2008

Pay Per Lead Services Versus Pay Per Click Advertising

By Josh Prizer

If you feel like you are spinning your wheels with the same poor quality leads from your lead generation service, you're not alone. In the past few years we've heard from more and more of our clients that the quality leads they used to get from their lead gen services are becoming worse and worse. More people are shifting their budgets to pay per click search where the quality remains strong.

Interestingly, one of the sources that lead generation companies use to develop leads is pay per click search traffic. Many will end up marking up the costs to you and then shelling the same lead out to multiple vendors. If this sounds like your situation, perhaps you ought to think about ditching the go-between and head straight to the source of traffic.

Getting into PPC advertising is not as simple as it used to be. Sure, you can set up a website with some contact info, but the competition has gotten more sophisticated in recent years. In order to really compete and push down your cost per acquisition, you've got to throttle up your effort and skills.

When you launch a paid search campaign, you need to realize that everything in your pipeline, from what keywords to appear on, what ads to run, where to send them, how to get them to take action, etc. -- all of that can be managed and optimized. Let's examine two of these areas.

Begin with your paid search ad copy. Today's PPC search engines place high importance on your click through rates. The more an ad is clicked, the more money they can make. So, they have worked into their algorithms things like "Quality Scores" which take these rates into consideration. Fine tuning your ad copy will increase your click through rates. Conducting daily split tests is vital. By testing your ads continually, you will find what works and what doesn't. If you don't have the time to do that, then hire a PPC management company. An expert can double or triple the number of people clicking on your ads.

Maybe that doesn't sound important, but it is. Doubling and tripling your quality traffic can do the same for your number of leads. And, it can lower your costs per click in the process.

But as I mentioned, everything in your pipeline can be optimized. Let's take a look at where you are sending these people who click on ads. Do you have a contact form or just an email address? Is your phone number visible or in your footer? Are you offering an incentive for people to take action? There's a lot to tweak and test.

Fine tuning your landing pages will lower your cost per lead. We've seen small changes double conversions and drop your costs per lead in half. So, tinkering is well worth the effort.

Making the jump to PPC search may not be in your company's core competency. If not, then outsource to a PPC management company. Their experts can mine massive keyword lists, pull keywords from your competitors, conduct the necessary and vital daily split tests, and give you insight into better landing pages.

So, consider getting rid of the saturated lead gen services and heading for the source. The results can be dramatic.

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