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Cost-Per-Lead Figures Vary by Vertical

Companies in the travel industry have the highest cost-per-lead (CPL) to obtain basic consumer information through opt-in digital advertising, while companies in the technology industry have the lowest CPL for basic information but the highest CPL for premium information, according to a report by online lead generation firm Pontiflex, which breaks out the costs of both types of leads by vertical.

In its "Cost-per-Lead Advertising Data Report," Pontiflex defines basic data as information such as a user's first name, last name, e-mail address and postal address. Premium fields include more detailed data such as telephone numbers, social networking usernames, and custom questions.Not surprisingly, the higher the number of fields of information collected, the higher the cost per lead. However, paying more doesn't always mean a company is guaranteed more and better leads. Asking for additional fields of information increases drop-off and reduces lead volume, Pontiflex said.

Pontiflex's analysis found that the overall cost for a basic lead, across all industries is $0.60, while the cost for a premium lead is $2.27. However, the increases are not consistent across industries.

pontiflex-average-overall-cost-per-marketing-lead-july-2009.jpg

Specific vertical differences:

  • In the entertainment industry, a basic lead costs $0.80, while the cost for a premium lead is $3.00.
  • In the CPG industry, a basic lead costs $0.87, while the cost for a premium lead is $1.13.
  • In the health industry, a basic lead costs $0.60, while the cost for a premium lead is $3.36.
  • In the non-profit industry, a basic lead costs $1.33, while the cost for a premium lead is $1.85.
  • In the technology industry, a basic lead costs $0.43, while the cost for a premium lead is $3.75.

pontiflex-average-cost-per-lead-marketing-technology-july-2009.jpg

  • In the travel industry, a basic lead costs $1.40, while the cost for a premium lead is $2.50.
  • The cost for a online retail basic lead is $0.59.

The report also found that advertisers often engage marketing leads through social networking groups and community sites, while a significant percentage also uses e-newsletters to collect information:

pontiflex-how-advertisers-engage-marketing-leads-july-2009.jpg

CPL is gaining interest as marketers increasingly turn to pay-for-performance pricing models, especially as budgets are cut and frozen and senior executives demand more accountability and measurement in marketing programs. Pay-for-performance models feature media purchased based on a defined success metric or specific action.

About the data: The Pontiflex CPL Benchmark Study was compiled for the time period August 1, 2008 to July 31, 2009 across a sample of 709 publishyer websites. The leads for campaigns included in the report were non-incentivized, opt-in and pupurchased on a cost-per-lead pricing model. The consumer sample included adults attes 18+ in north America.

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