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Pontiflex  Cost per Lead By  Industry
 

Pontiflex Cost per Lead By Industry

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Cost-per-Lead Advertising

Cost-per-Lead Advertising
Data Report
CPL Benchmarks across
Industry Verticals

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    Pontiflex  Cost per Lead By  Industry Pontiflex Cost per Lead By Industry Document Transcript

    • Cost-per-Lead AdvertisingData ReportCPL Benchmarks acrossIndustry Verticals www.ponti ex.com
    • IntroductionIt is no surprise that performance advertising has grown tremendously over the past few years. In turbulenteconomic times, marketers are forced to do more with less. At the same time, audiences are more fragmented,making engagement and brand loyalty more di cult to accomplish. Advertisers are faced with the dual chal-lenges of both increased scrutiny over ROI and a more competitive marketplace through which to reach theirtarget consumers.To address issues of measurability and audience engagement, marketers have turned to pay for performancepricing models, wherein media is purchased based on a de ned success metric or speci c action - instead ofimpressions. As a result, Cost-per-Lead (CPL) advertising has gained signi cant traction across verticals.This rst quarterly report provides a detailed overview and measure of the market, including: 1. CPL Advertising Overview 2. Ponti ex CPL Benchmark Study a. How Advertisers Engage Marketing Leads b. Average CPL and Sample Lead Engagement Strategies by Industry i. All Industry Verticals ii. Consumer Packaged Goods iii. Travel iv. Non-pro t v. Health vi. Entertainment vii. Online Retail & Catalog viii. Technology 3. MethodologyCost-per-Lead Advertising OverviewOnline lead generation is a broad term used to de ne the acquisition of consumer contact information throughdigital advertising. Cost-per-Lead (CPL) is the pricing model through which advertisers ask consumers to providecontact information and pay only for the contact information, or lead, collected. www.ponti ex.com
    • When advertisers think of lead generation, they often picture consumer contact information sold through listbrokers and lead generators without strict opt-in policies. This category of lead generation is known as “salesleads.” Sales leads are generic leads that are often resold to multiple advertisers.However, the emergence of marketing leads has changed the online lead generation landscape. A marketinglead is the contact information of a consumer who has explicitly signed up to receive communication from aspeci c brand. Marketing leads are collected on a strict opt-in basis and are never resold.In a marketing leads CPL campaign, advertisers gain exclusive marketing rights to individuals who want to hearfrom them, and pay only for valid sign ups. As a result, marketers from all major industry categories have adoptedCPL advertising, including The 2008 Barack Obama Presidential Campaign, Kimberly-Clark, Disney, Blockbuster,Blackberry, UNICEF, Travel Nevada, NewEgg and Graco.The Ponti ex CPL Benchmark StudyPonti ex is a marketplace that connects companies to interested consumers (i.e., marketing leads) through a CPLpricing model. Over the past year, Ponti ex has compiled research on how di erent industry verticals usemarketing leads and how Cost-per-Lead prices vary based on the industry sector and the number of eldscollected as part of a lead.How Advertisers Engage Marketing Leads: OverallAs shown in the following graph, advertisers commonly engage marketing leads through social networkinggroups and community sites. Examples include the Kimberly-Clark Facebook widget, the Obama Community(across multiple media vehicles) and the Graco Nation community site. A signi cant percentage of advertisersalso use e-newsletters to engage marketing leads. Examples of e-newsletters include the Dunhill Travel Dealsnewsletter and the Coldwater Creek Exclusive O er e-newsletter.Typically, brand marketers use marketing leads to build engagement vehicles such as community sites,e-newsletters, social networking groups, and loyalty programs.Direct response marketers use marketing leads to build e-newsletter lists and direct mail lists to drive revenue. www.ponti ex.com
    • Source: Ponti ex Internal Research, July 2009Average Cost-per-Lead and Sample Lead Engagement Strategies by IndustryAt the most basic level, the Cost-per-Lead varies according to the information collected in a lead. A lead is com-prised of di erent elds that give information about an end user – Name, Email Address, Postal Address, Twitterusername, etc.There are two levels of information that can be collected as part of a marketing lead: 1. Basic elds: This is the information required to contact a consumer who has signed up for an advertiser o er. Basic elds include First Name, Last Name, Email Address and Postal Address Fields. 2. Premium elds: Premium Fields o er more detailed information over and above the basic consumer elds. Premium elds include: a. Telephone numbers b. Twitter usernames c. Custom questions such as, “Have you traveled to Hawaii in the last year?” d. Geo-targeted information www.ponti ex.com
    • As shown below, increasing the number of elds increases the Cost-per-Lead. Source: Ponti ex Internal Research, July 2009As is true for landing pages deployed in banner and search campaigns, collecting more information increasesdrop-o and reduces lead volume.For that reason, CPL advertising best practices recommend capturing basic information during the rst contactwith the end consumer, and capturing additional information over time as the brand builds a relationship withthe consumer.The following charts represent the costs of a marketing lead by vertical—i.e. the cost of acquiring the contactinformation of a consumer who has signed up for an advertisement, and granted the advertiser explicit permis-sion to contact them with future messages.The verticals included in the report were selected based on the patterns of demand for marketing leads. While awide variety of industry sectors are represented, this is not an exhaustive list of all verticals using CPL to date.Ponti ex will expand this study to include more industry verticals in future reports. www.ponti ex.com
    • Consumer Packaged Goods (CPG) Source: Ponti ex Internal Research, July 2009Lead Engagement Strategies: CPGReynolds engaged acquired leads through a “Special Deals” newsletter, while Kimberly-Clark drove users to apregnancy countdown widget for the HUGGIES brand.Travel Source: Ponti ex Internal Research, July 2009Lead Engagement Strategies: TravelDunhill Vacations used marketing leads to build a travel e-newsletter list while interactive agency Ruf StrategicSolutions used marketing leads to build a direct mail list for the Travel Nevada campaign. www.ponti ex.com
    • Non-Pro t Source: Ponti ex Internal Research, July 2009Lead Engagement Strategies: Non-pro tIn the non-pro t/political advocacy vertical, the 2008 Barack Obama Presidential campaign used marketingleads to build a community around the Obama brand, while WeCanSolveIt.org engaged marketing leadsthrough its website for advocacy purposes.Health Source: Ponti ex Internal Research, July 2009Lead Engagement Strategies: HealthIn the health vertical, iGuard used marketing leads to educate consumers about prescriptions, while Gold’s Gymengaged marketing leads at multiple touchpoints to increase new members at locations across the country. www.ponti ex.com
    • Entertainment Source: Ponti ex Internal Research, July 2009Lead Engagement Strategies: EntertainmentThe critically acclaimed documentary I.O.USA used marketing leads to build a community of fans in the monthsleading up to the release of the movie. Blockbuster engaged acquired leads via an e-newsletter and mobile appsto promote their 14-day free trial.Online Retail and Catalog Source: Ponti ex Internal Research, July 2009 www.ponti ex.com
    • Lead Engagement Strategies: Retail and CatalogRetail marketers are usually more focused on direct marketing. The generally accepted best practice in the retailindustry is to keep the initial costs low to maximize ROI. As a result, most marketers collect only basic elds in theretail segment. Then, they engage leads through repeat mailings to maximize ROI.Coldwater Creek used CPL advertising to build a list of interested consumers that signed up to receive catalogsfrom the premier apparel brand. Online retailer NewEgg used CPL advertising to build a list that they could emailproduct and season speci c discounts to.The Direct Marketing Association estimates the ROI from an email address to be $43.52, while noted directmarketing expert Stan Rapp estimates it to be as high as $118.Technology Source: Ponti ex Internal Research, July 2009Lead Engagement Strategy: TechnologyeFax used marketing leads to drive adoption of its free fax service, while Samsung used marketingleads to keep potential customers updated about upcoming product launches. www.ponti ex.com
    • Research MethodologyThe Ponti ex CPL Benchmark Study was compiled for the time period August 1, 2008 to July 31, 2009 across asample of 709 publisher websites. The leads for campaigns included in the report were non-incentivized, opt-inand purchased on a Cost-per-Lead pricing model. The consumer sample includes adults 18+ in age who live inNorth America. Data for this report was compiled from campaigns that had a minimum spend of $5,000 over theaforementioned one year time period. The lead data in this report does not account for the recent adoption ofCPL advertising by emerging media. Please note that the CPL for these media may be higher or lower than thedata included in the report depending on intent, content and media type.About Ponti exPonti ex o ers advertisers a single point of connection to the entire performance advertising market. ThroughPonti ex, advertisers can run ads on websites, social networks and mobile apps, and connect to the right peopleno matter where they are.Ponti ex enables advertisers to run ads on a Cost-per-Lead (CPL) pricing model. Advertisers pay only for peoplethat have signed up for their advertisements, and not for wasted clicks or impressions.Advertisers engage acquired consumers in a variety of ways. Examples of engagement vehicles include the 2008Barack Obama Presidential Campaign e-newsletter, the Graco Nation community site and the Kimberly–Clark“Enjoy the Ride” loyalty program. www.ponti ex.com