If you are running a business, you will surely come across plenty of checkpoints where you have to make important decisions about how you will run it and, of course, how you will pay for the whole show of keeping the wheels spinning.
One of those decisions, which you will make, remake or review once a year or every six months, is probably about the company’s budget and marketing strategy.
There are plenty of options and combinations for the marketing mix, and the fact is that no one can truly tell you which mix you should choose. It is up to you to decide what works best for you, and to some extent this varies by the industry you are in.
When making these decisions, it is good to know the average numbers and compare costs.
We will give you a short preview of the cost comparison in this blog.
| Lead generation channel | Cost per Lead on average ($) |
|---|---|
| Events & Tradeshows | 811 |
| PR | 294 |
| Referrals | 73 |
| Video Marketing | 174 |
| LinkedIn advertising | 75 |
| Webinars | 72 |
| Display advertising | 63 |
| Content marketing | 92 |
| Traditional marketing (TV, Radio, Print) | 619 |
| Search Engine Advertising | 110 |
| Email Marketing | 53 |
| Online retargeting | 31 |
First of all, let’s define Cost per Lead. Cost per Lead is one of the most widely used metrics for evaluating the efficiency of a marketing campaign. The formula is simple:
Total cost spent on marketing program / Number of Leads coming from the program
For example, let’s say you have spent $1,000 on a pay-per-click (PPC) advertisement and 50 people were converted into leads.
Cost per Lead = $1,000 / 50 = $20.
PPC Adwords (per month) | Physical trade show (per show) | International Marketing Agency lead generations system | |
|---|---|---|---|
| Prospects engaged | 50 | 250 | 1200 |
| Sales opportunities | 10 | 10 | 35+ |
| Total cost | 5690 eur | 28453 eur | 1500 eur |
| Cost per sales opportunity | 590 eur | 2845 eur | 43 eur |
| Cost per sales (20% close rate) | 2845 eur | 14227 eur | 301 eur |
As can easily be seen from the numbers in the table, physical trade shows are extremely expensive compared to digital marketing campaigns. Yet even digital marketing channels differ in their cost per lead acquisition, and the social selling lead generation system is far more effective and far less expensive than one of the most commonly used digital channels, such as PPC Adwords. The social selling lead generation system is almost impossible to compare with traditional marketing channels or trade shows, which cost a few dozen times more.
Physical trade shows and traditional marketing channels reach a large number of people but have very low-quality target segmentation, and as a result, prospect selection is very blurry.
AdWords is Google’s PPC advertising platform and main source of revenue. Typically, PPC advertisers use AdWords to bid on the keywords they want to trigger their sponsored ads. … You’ll need to create a list of keywords that you want to bid on, based on their relevance to your business’s offerings.
Basically, you pay the search engine to favor you in the results for those who use the keywords that interest you in their Google search. Like all other automation tools, this has its flaws, and plenty of the money spent is used to reach irrelevant prospects who will never enter your pipeline and become hot leads.
After social media took over our everyday lives, segmentation and detailed targeting have become much more important, and different groups simply use different channels for different purposes. To put it plainly, people rarely go to Facebook for business; they go there for fun. And people rarely go to LinkedIn to waste their time; they use LinkedIn for business and professional development.
This is good to know when developing a marketing strategy for your company and understanding the mechanisms that work best for your business.
International Marketing Agency uses the best tools available, combined with a wealth of experience and knowledge, to craft the perfect package for your business. The lead generation system is the most effective on the market, especially if you are in the tech industry, digital services or software products.
The lead generation system used by International Marketing Agency engages 24 times more prospects per month than PPC Adwords, or 4,8 times more than a physical trade show. Compared with the mentioned marketing channels, it generates 3,05 times more sales opportunities, and costs 3,8 times less than PPC Adwords and nearly 19 times less than a physical trade show. The cost per sales opportunity is 13,7 times lower than the cost per sale with PPC Adwords, or nearly 66 times lower than the cost per sale with physical trade shows. The ultimate cost per sale, calculated for a 20% close rate, is 9,4 times lower than the cost per closed sale with PPC Adwords, or nearly 47 times lower than the cost for a physical trade show.