Online Lead Generation with Pay Per Click Advertising (PPC)

Pay Per Click
Home » Blog » Online Lead Generation with Pay Per Click Advertising (PPC)

Online Lead Generation

There are a lot of business owners and executives out there who don’t understand the importance of online lead generation. In person networking is great way to generate leads and close new business, but it is not scalable.  While highly effective, you are essentially trading time for money and your growth is limited by the time invested.  As soon as you stop networking, the leads stop trickling in and referrals stop coming your way.  Individual contributor level employees also aren’t typically driving in leads since their compensation structures aren’t aligned with the success of the company, at least not to an extent that they are personally motivated to sell.  That’s why for organizations to continue growing they need to build an online lead generation funnel.  One of the best ways to do this for new and seasoned digital advertisers alike is with pay per click advertising campaigns.

Pay Per Click Advertising

Pay per click advertising is an effective and cost efficient method of bringing inbound leads.  When you search on a search engine like Google or Bing, pay per click advertisements are the search results with a tiny little word, “Ad” next to them at the top.

Online Lead Generation With Pay Per Click Advertising

These are ads are a way for smaller businesses to jump to the top of the results page for a given term so that they can compete with other paid advertisers and the organic, or unpaid, results. The cost of a click can range from anywhere between a few cents for low competition low deal size keywords to well over $100 for highly contested high deal size keywords.  Keywords are the words users type into the search engine to find a product or service, “tennis shoes” or “realtor” for example.  With pay per click advertising, you swap from trading time for money to money for time. For business managers and owners it’s not uncommon for their time to be valued $100 and hour or more.  When you consider this value, outbound sales and working the network for leads becomes a very expensive endeavor. $100 of pay per click advertising can go a long way depending on the product or service.  A business owner that manages a roofing company may decide to canvas a neighborhood for new leads. They have to choose a neighborhood, drive to it, walk around each house inspecting it for replacement, knock on peoples doors (if they are home), speak to them about the roofing services and try to sell them a new roof, drive home, and document any deals closed or leads qualified.  This could easily be a 4-6 hour process, or $400-$600 of time.  Alternatively they can spend $500 of advertising on pay per click at an average of $20 per click, convert 1 out of every 5 visitors that click into a lead, and have a chance to close 5 deals. By doing this they also retain their ability to oversee production and continue to build the business.  There is initial setup of an ad campaign, but once a campaign is configured it can be re-used by pausing and un-pausing the campaign as needed with only the cost of additional ad spend.

Scalability and Online Lead Generation

One of the great things about using tools like pay per click advertising as part of an overall online lead generation strategy is how easy it is to scale up and scale down investment. Hiring, firing, on-boarding, and training employees like outside salesmen can’t get very expensive and investment comes in chunks. I like to think of these chunks are “hiring units”.  There are times when you would like to increase the number of leads you are generating but don’t have revenues to support hiring new full time employees.  You may have a website or other digital investments in place so naturally paid advertising in pay per click campaigns is a great way to scale up your online lead generation efforts.  Many businesses typically have a monthly ad spend budget with a daily spending target.  In the event of a down turn or reaching full capacity, it’s also very easy to scale down online lead generation.  You simply stop spending or spend less to generate fewer leads.  It makes your business more elastic and is a great tool for smoothing demand and bringing predictability in workload.

Posted in:

Hunter Nelson

Hunter has more than 10 years’ experience in the software industry building and configuring software for companies such as American Express, Black Knight, Homes & Land, Verizon and more. Hunter earned his bachelor’s degree in Information Technology from Florida State University in 2009 and began his career consulting for Accenture out of the New York City office. After accruing significant experience working with Fortune 500 Clients on complex software projects as an analyst, he discovered his love for coding and building software. While practicing the craft he earned an MBA from Florida State in 2017. In 2018 he founded Tortoise and Hare Software to begin providing business value in digital consulting engagements to small and medium sized businesses and helping them along in their journey toward the Fortune 500. See LinkedIn for more.

Leave a Comment

Up Next

Why You Shouldn’t Use Thank You Pages For Conversion Tracking

By Hunter Nelson | December 14, 2020

Tracking conversions is one of the most important things to do as you strive to achieve your marketing goals. In recent years, a growing number of companies are turning to their thank you pages to determine their conversions. While this tracking method is easy to execute, it’s actually one of the worst ways to gauge…

5+ Essential Google Ads Campaigns For Your Ad Account

By Hunter Nelson | June 21, 2020

Advertising your business on Google Ads is a fantastic way to drive traffic to your website and generate leads for your company. Many companies don’t know where to start when it comes to creating campaigns, or structuring their account in general, so today I wanted to go over a few of the essential Google Ads…

IT Company Digital Marketing Case Study

By Hunter Nelson | April 13, 2020

In today’s post we’re going to be talking about an IT company digital marketing case study. NetTech Consultants is a Jacksonville based IT company or Managed Service Provider as they’re commonly known as in the IT world. Back before coronavirus there was this thing called a “trade show” where large groups of people would get…

Bid on Branded Keywords

By Hunter Nelson | December 19, 2019

Why are we spending money on branded keyword searches if we’re already ranking at the top of the page? This is a good question that clients often ask when getting started with PPC and one that has a number of compelling reasons to do so. In this post we will cover why you should bid…

What is Inbound Marketing?

By Hunter Nelson | June 12, 2019

Inbound marketing is the process of designing a marketing strategy that results in customers coming to you to do business. This is in stark contrast to outbound techniques which rely on you or a sales team reaching out to prospects to educate them about your services. Most business owners are familiar with outbound tactics such…

Search Marketing, Organic or Paid?

By Hunter Nelson | March 18, 2019

Nothing embodies the metaphor of the Tortoise and the Hare better than the relationship between SEM, SEO and PPC. Search engine marketing (SEM) is the practice of developing a market for search traffic to your website through long term organic growth using content marketing and search engine optimization (SEO) and short term Pay Per Click…

5 Ways to Grow Your Business in 2019

By Hunter Nelson | January 6, 2019

The rush of the holiday season is over and we are moving into what is typically a rest, recover, and rethink period for business owners. As consumers and businesses take a break to let their wallets recover during the early part of the year, it becomes a great time to think about 5 ways to grow your business in 2019.