Lead gen ads are a type of online advertising that focuses on generating leads, rather than driving immediate sales. The goal of lead gen ads is to capture interest and contact information from potential customers so that sales teams can follow up with more information and offers.
How do lead gen ads work?
Lead gen ads work by prominently displaying a call-to-action for the viewer to provide their contact information, usually by filling out a form. This form typically asks for details like name, email, phone number, and sometimes additional qualifying questions. The viewer submits their details in exchange for an offer or piece of content, like a coupon, sample, consultation, or access to gated content like a whitepaper or ebook.
Once a viewer fills out the form, their contact information is sent to the advertiser. The advertiser can then follow up and nurture these leads through emails and other channels until they are sales-ready. The goal is to capture promising leads when audience interest is peaked and build an ongoing relationship from there.
What are the benefits of lead gen ads?
There are several key benefits to lead gen ads for both advertisers and customers:
- They allow advertisers to generate and collect highly qualified leads who have already expressed interest.
- Leads can be segmented and scored based on the questions used in the lead gen form.
- Lead gen ads are measurable, with lead quality and cost per lead (CPL) as key performance indicators (KPIs).
- Advertisers can optimize ads to lower CPL and improve lead quality over time.
- Customers provide only the details they are willing to share in exchange for content.
- Customers receive targeted, relevant content and offers in exchange for their details.
- Higher quality customer experiences improve brand perception and loyalty.
Where can you use lead gen ads?
Some key platforms that support lead gen ad formats include:
- Facebook – Lead ads on Facebook allow capturing leads directly within the Facebook platform. Leads go into a Facebook Lead Ad Form database for follow up.
- Instagram – Instagram lead ads also capture leads directly on Instagram’s platform in the same way.
- LinkedIn – Sponsored InMail ads and Lead Gen Forms allow capturing leads on LinkedIn.
- Google – Through Google Ads, leads can be generated via lead form extensions, call extensions, and more.
- Twitter – The website card fetch feature or integrated lead gen cards enable lead capture on Twitter.
- Taboola – Lead ad formats capture leads through customizable lead forms on Taboola’s content network.
- Outbrain – Lead ads with customizable lead forms can generate leads on the Outbrain content network.
- Quora – Lead gen ads on Quora capture leads with information requests, quotes, subscriptions and more.
How do you create effective lead gen ads?
Some tips for creating effective lead gen ads include:
- Offer a compelling piece of gated content like an ebook, whitepaper, or coupon in exchange for lead details.
- Keep lead gen forms short, asking only for essential information.
- Use lead scoring to prioritize leads based on attributes like job title, company size, or interest.
- Personalize follow up messages and nurture leads based on their attributes and interests.
- Test different headlines, images, captions, and calls-to-action to optimize performance.
- Measure cost per lead (CPL), lead quality, and conversion rates to refine targeting and messaging.
- Remarket to leads who haven’t yet converted to accelerate sales cycle.
What makes a good lead gen ad creative?
Some elements of highly effective lead gen ad creatives include:
- An informative, benefit-driven headline and image that quickly convey value.
- A prominent, contrasting call-to-action button.
- Clearly highlighting the offer or gated content they will receive.
- Using lightboxes or layers to display the lead gen form within the ad unit.
- Asking only for essential contact information needed for follow up.
- Having the form stand out visually from the background.
- Following brand guidelines for typography, color scheme, etc.
What are some lead gen ad best practices?
Some proven best practices for running lead gen ad campaigns include:
- Lead scoring to focus on attracting and capturing high quality leads.
- Custom audiences and lookalike audiences to target more precisely.
- Relevant, multi-format creatives tailored to each platform and audience.
- Nurturing leads with customized content and messaging post-submission.
- Integrating with marketing automation and CRM to score and follow up with leads.
- Optimizing for engagement and conversions, not just reach or clicks.
- Testing and iterating on creatives, offers, targeting, and more to improve performance.
- Analyzing metrics like CPL, CTR, reach, and engagement rates to optimize.
What are some common mistakes with lead gen ads?
Some common lead gen ad mistakes to avoid include:
- Asking for too much information upfront, creating friction.
- Using generic, untargeted creatives and messaging.
- Not offering compelling content or clear value exchange.
- Failing to nurture and follow up with leads post-conversion.
- Not tracking metrics beyond conversions like engagement rate.
- Focusing too narrowly on specific demographics rather than intent.
- Not coordinating with sales teams for effective post-conversion follow up.
- Overlooking importance of landing page quality and relevance.
- Not optimizing for mobile experience despite majority mobile usage.
Are there any disadvantages to lead gen ads?
Some potential downsides of lead gen ads include:
- Higher cost per click (CPC) relative to regular ads because of more intense competition for conversions.
- Lead quality can be lower if targeting and follow up nurturing are not optimized.
- Requires close post-conversion coordination between marketing and sales teams.
- Some ad platforms take a cut of leads generated, raising total cost.
- More inputs and data required from advertiser including lead scoring and nurturing plans.
- Harder to measure full ROI as ultimate goal is downstream sales versus last-click conversions.
- Potential for lower visibility and brand building effects compared to regular awareness ads.
How can you determine if lead gen ads are working?
Key metrics to assess lead gen ad effectiveness include:
- Cost Per Lead (CPL) – The average spend to acquire each lead. Lower is better.
- Lead Quality – Percentage of leads that convert to sales, or score highly on lead rating.
- Click-to-Lead Conversion Rate – The percentage of ad clicks that result in lead form submissions.
- Engagement Rate – Clicks, reactions, comments, shares, etc. relative to impressions.
- Volume of Leads – The total number of qualified leads being captured.
- Sales Qualified Lead Rate – Percent of leads that marketing passes to sales that convert.
Leads should be tracked into the sales funnel to connect lead gen ad ROI to downstream revenue.
How can you optimize lead gen ad campaigns?
Tactics to optimize lead gen ad performance include:
- A/B test ad creative elements like images, headlines, calls-to-action, layouts.
- Experiment with different targeting parameters and audiences.
- Measure and improve landing page experience and match to the ad message.
- Review lead quality and prioritize the highest value segments.
- Analyze leads lost and optimize targeting to capture more of them.
- Review lead scoring model and adjust to improve prioritization for sales.
- Refine lead nurturing campaigns based on what messaging converts best.
- Build custom audiences off converted leads for remarketing.
What targeting options work best?
Top targeting strategies for lead gen ads include:
- Audience targeting – Target by demographics, interests, behaviors, etc. that indicate intent or readiness.
- Custom audiences – Target website visitors, past leads/customers, lookalikes, etc.
- Contextual targeting – Target by relevant topics, keywords, or placements.
- Retargeting – Target people who previously engaged with your ads or content.
- Geo-targeting – Target by location parameters like city, region, radius, etc.
- Dayparting – Target by time of day or day of week when audience is receptive.
Should you use landing pages optimized for lead gen ads?
Yes, dedicated landing pages designed specifically for your lead gen offers tend to convert much better than generic homepages. Some tips for effective lead gen landing pages include:
- Matching the messaging and creative from the ads.
- Prominently featuring the offer or content promised in exchange for the lead.
- Keeping forms short and only asking for essential info.
- Optimizing the page for mobile responsiveness.
- Using trust signals like security badges, testimonials, satisfied customer logos.
- Having clear calls-to-action to drive form conversions.
- Reducing distractions and keeping navigation simple and linear.
Dedicated landing pages allow you to test variables and optimize the lead capture process specifically for each ad campaign.
What tools can help manage lead gen ads?
Some helpful tools for managing lead gen ads and optimization include:
- Google Analytics – Track website conversions and optimize landing pages.
- Facebook Ads Manager – Manage Facebook and Instagram lead ads and reporting.
- LinkedIn Campaign Manager – Run and monitor LinkedIn lead gen campaigns.
- Google Ads – Create lead form extensions and track conversions.
- CRM – Integrate with leads for scoring and sales tracking.
- Marketing automation – Foster lead nurturing post-capture.
- A/B testing – Test landing page and ad variations.
- Heatmaps – See how users interact with landing pages.
Conclusion
Lead gen ads can deliver highly targeted, qualified prospects to fuel the sales funnel. By crafting compelling offers, optimizing targeting, seamlessly capturing lead details within ads, and coordinating follow up through sales and marketing, advertisers can reduce cost per lead and improve conversion rates throughout the funnel. Tracking key metrics around cost per lead, lead quality, and downstream sales will ensure lead gen ads deliver a strong return on ad spend.