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Lead generation continues to baffle marketers
Marketing News |
08/12/2011
Businesses are being held back by a lack of understanding among marketers about the definition of lead generation and how to deploy it, it has been claimed.
According to the Internet Advertising Bureau (IAB), the sector grew by 20 per cent in the first half of 2011, more quickly than the industry's understanding of the discipline.
The organisation said there is clearly an appetite for lead generation, but 52 per cent of marketers surveyed believe they are not using it in the most effective way.
Some advertisers are struggling to define exactly what lead generation is and what budgets to apportion, while others are having difficulties demystifying jargon and understanding what makes an effective campaign.
The IAB said lead generation is a marketing activity paid for on a cost per lead basis with the aim of obtaining a consumer's consent to receive communication about a product or service.
But almost half of respondents described the field as 'database building' (49 per cent), and an almost equal proportion said it was 'customer generation' (48 per cent).
Despite an apparent lack of clarity, 33 per cent of respondents allocated more than £100,000 to lead generation in 2011.
And 40 per cent claim they will increase their budget in 2012.
Trine Buus, chair of the Lead Generation Council, said online lead generation is "proven yet misunderstood".
She claimed that addressing this issue in 2012 is the council's primary focus.
"There's a long-term educational challenge and the council will continue its mission of publishing educational materials that help marketers understand the benefits, opportunities and effectiveness of lead generation tools," Ms Buus stated.
"Worth mentioning is the industry's perception of return on investment and pricing, which needs to be seen in perspective to lead quality, conversion mechanisms, tools and channel mix."
According to the IAB, online marketing spending increased by 22 per cent year-on-year during the third quarter of 2011.
Posted by Stephen Wilkinson
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