The case against cost per lead

I am against advertisers judging media buys strictly on cost per lead success, and here's why -

IT'S INCOMPLETE.

Cost per lead metrics give no credence to a well designed advertising campaign. For instance, I may be in the market for a car. Maybe I saw a billboard, a TV ad, a magazine ad and spoke to a friend about the car.

When I walk into the dealership, I won't say, "Hi, I just saw your billboard, your TV ad, your magazine ad and spoke to my friend, so therefore I am ready to buy your car."

That just doesn't happen. What happens is that in a good marketing campaign, with effective ads and a targeted mix of media, each ad becomes part of the push that moved the prospect to buying.

I spoke to a longtime client yesterday. I love this guy and he loves Next Step. Let's call him Hank.

Hank renewed his advertising for the next school year because he knows Next Step works well for him. But the "people upstairs" are breathing down his neck about "the number of leads" he gets from each of his media buys.

He said the "people" are always saying it's not enough.

I asked him how do the "people" account for all the Next Step readers who just saw his good ad and called, went to his web site or e-mailed? (We don't get credit for those).

He thought that was a good question.

Then I asked Hank how his year was. He said "Incredible - a record!"

I then asked him for part of the credit. Next Step was one of only three advertising vehicles Hank used.

Hank gives me the credit. He gets it. He knows that all good advertising can't be tracked by lead. It's the "people upstairs" that we need to worry about.

All they see is a number (leads). They need to start looking at a different number - Hank's record year. That's the metric that really matters.

I get quite passionate about cost per lead in my recent newsletter. For more cost per lead ranting, please go to http://www.brand-university.com/.