It's All About Leads

Yes, this is pretty obvious.  But we often overlook the importance of leads and lead generation.  Also overlooked is how central lead generation is to the business models of many of the Internet's most successful companies - and how lead generation is changing media and marketing. 

Google is, of course, all about leads via adwords.  So is eBay and all the other online markets.  For example, I just made a restaurant reservation using Open Table.  It is a public company worth $600 million that gets a big chunk of its revenue generating leads. 

We recently posted on social game companies.  Rapidly growing rapidly and hugely successful, these firms are lead generation platforms disguised as casual game companies. 

On the marketing side, firms that provide lead generation services are thriving while traditional marketing agencies struggle.  Hubspot, a successful Internet marketing firm that is an agency/services/web analytics hybrid, is a good example. 

The shift towards lead generation is also a major driver of the disruption of the media industry.  Traditional media's marketing strengths are awareness and branding.  Not good when advertisers are focusing on lead generation.  Most new media companies tightly focus on generating leads for their clients. 

The trends driving the need for leads are diverse and strong.  Increased competition is a key driver, as is the growing consumer and B2B customer immunity to traditional advertising.  

Enabling and driving this trend is the the increasing power of analytical software and the growing reach and data intensiveness of the Internet.  These tools and data are making it easier for even small businesses to run sophisticated lead generation programs. 

Like most trends, the shift towards lead generation is not new.  Many of the online methods and approaches considered innovative today were in use decades ago by the direct marketing industry.  But despite its age, the shift towards lead generation is just beginning.   

Comments

[lead generation services]

Information make it exciting. Lead generation services that belongs to technology and business communications. That support better to grow effective business and worldwide network.

[legitimate paid surveys]

In small businesses, like mine, leqads are important, so we invest on it. We've tried several ways or marketing strategies, but then, we now know which is working or not. So I was always on the lead,I'm using several social media for my advertisement.

[make money online]

Social media for leads are good for business but then there are factors why it's not good and the effects of it. Other source of advertisements should be considered too.

[Michelle]

Thanks for sharing this post. I enjoyed reading it. I have a small business, and this might help.

[Lead Generation]

Social media is on big factor, or is most used tool for marketing strategy.

[Melton26Earnestine]

I propose not to hold back until you get enough amount of cash to order all you need! You should just get the loans or student loan and feel fine

[4gb usb drive]

While these are interesting, they are not that relevant outside of the industry and probably not that relevant to the people that matter most, the advertiser. They are measuring the inputs and not the outputs. What portals should be talking about is the number of leads they generate for the advertiser. This is the true measure of effectiveness. The problem is most portal sites just don’t know how many leads they really generate.

[James Deck]

A very interesting point regarding traditional media (eg. print, TV).

It's ironic that most businesses see the several thousand dollar traditional media campaigns a "must" whereas online marketing, with ironclad statistics, is still not a "must."

I wonder how long until small business owners start to shift to mediums with definitive statistics?

Having said all that, branding and awareness are still very important and have their place -- especially for larger entities. I suppose it is the banner ads and annoying Flash popups that will satisfy their needs going forward.