In simpleton terms, what is online lead generation (OLG)?
Justin Rees, Director of Marketing and Partnerships, LeadPoint: "According to the IAB UK, online lead generation is an online marketing activity paid for on a Cost Per Lead (CPL) basis with the stated aim of obtaining the consumer’s express consent to receive future communications from a specific advertiser or advertisers - via email, texts, calls and other advertiser initiated messaging.
"As such a lead is a consumer that has given their express consent to be contacted."
What is the difference between a premium lead and a co-registration lead?
"Still when most people think of lead generation they think of co-registration which is when a consumer signs up to a site (often an online prize draw or competition site) and is presented with offers from a number of advertisers where they can opt-in to receive further communication from the advertisers. These offers are often incentivised.
"A premium lead on the other hand is where there is no incentive for the consumer to submit their information apart from receiving further communication about the product or service in question. Often the lead capture form can be more than 20 fields long whereas for co-registration just a name and email address might be required. As a general rule premium leads are far more valuable than co-registration leads."
Why should affiliates care about lead generation?
"While CPA is still a vital part of affiliate marketing – and will always remain so – advertisers and publishers are increasingly looking to lead generation as part of their performance marketing mix. There are certain products that simply work better on a CPL basis, often where the consumer has to come offline during the sales process, e.g. financial services so CPL is the only real option.
"OLG is higher up the sales funnel offering advertisers brand awareness and engagement as well as sales. It also gives the advertiser the opportunity to remarket to all those consumers that didn’t convert into sales immediately.
"The good news for affiliates is that lead payouts can be very high in certain categories. In financial services for example, leads can be worth £40 or more. This represents a significant revenue opportunity for many affiliates that have traditionally only worked on CPA campaigns."
What categories are most suited to lead generation?
"Generally, where there is an asymmetry of information between the consumer and the product or service provider, or the transaction can’t happen purely online there is a strong case for OLG.
"Good examples are financial services, automotive, B2B but there are lots of great campaigns working well across all sectors from FMCG to charities."
Should affiliates use incentives to generate leads?
"There is a lot of debate in the OLG community about the use of incentives in lead gen campaigns. Ultimately incentives will impact on lead quality but as long as you can get the balance right between volume, price and conversion rate then there is no reason why incentives can’t be used.
"As a general rule, an incentive should have some relation to the advertiser’s product or service. For example if you are going to capture consumers that are interested in cosmetic products, offering a free sample of a cosmetic product will result in much higher quality leads than if a free ipad is offered.
"There is also the issue of incentivised traffic vs an incentivised lead and the impact this has on quality. As long as there is a good feedback loop between the buyer and seller then the best course of action is to try a few things and see what works."
thanks to Justin Ress from LeadPoint for his insight.