Pay Per Click (a.k.a. PPC, Adwords, Search Ads, etc.) serves a number of purposes. It can focus on impressions, driving traffic, driving purchases, as while as generating leads. So does pay per click lead generation work? We’ll take a look at one of our own clients to show you just how effective a lead generation pay per click campaign can be.
Setting Up the Conversions
The first thing to do when creating a lead generation campaign, is to get your conversions setup properly. In this case, we are working with a martial arts studio in our area. A “lead” constitutes anyone who has signed up to receive a class schedule or inquired about a free trial. These individuals have to submit an email address and or phone number in order to be acquired as a lead. In both situations there is significant intent to join the martial arts studio. These individuals have already determined they are interested in martial arts and are beginning to narrow down there search to studios.
So in this case, setting up the conversions is relatively straightforward. After the user submits the contact form they are led to a “thank you” or “confirmation” page that is only accessible after completing the form. Therefore we can use unique pageviews from these pages as our conversion metric.
Setting Up the Campaigns
The next step is to set up the pay per click campaigns we are going to use. For this specific client, we chose to only go with a Google Search campaign due to budgetary restrictions and the fact that display advertising typically doesn’t drive as many leads with a small budget.
We also chose the Search network because we could reach highly qualified people. Martial arts studios generally have a limited geographical reach. So we focused only on the city in which the studio was located. In addition, we identified fairly tight-knit keywords to ensure that we were only showing up for people who were interested in joining a martial arts studio. We do want to show up for people just looking for cool martial arts videos or movies. While related, this wouldn’t be an efficient use of a limited budget. You can be interested in martial arts videos while having no interest in joining a martial arts studio.
Results Thus Far
We’ve been running the campaign for a couple of months now and the results are great. Over the course of two months, we have spent approximately $280 and received 43 leads. The conversion rate is just under 20% with a cost-per-conversion at $6.50.
Here’s why these numbers work. The martial arts studio owner can make back that money if just TWO people sign up for 2 classes per week for one month. So he only needs to convert two out of forty-three leads. This is almost a guarantee for him as he normally converts leads to paying customers at a 70% rate. That’s potentially 30 new paying customers. That’s not even taking into account that most people will maintain their martial arts schedule for well over one month. So is pay per click lead generation worth it? That is a definitive “yes”.