Frank Kern | How To Get Leads That PAY.

Summary

In digital advertising, focusing solely on cheap leads can be a mistake. The real value lies in leads that convert into revenue, not just those with the lowest cost per lead (CPL). Using tracking tools like Roas.org helps you accurately measure return on ad spend (ROAS) and automate ad optimization. By tracking sales beyond the standard 7-day attribution window, advertisers can scale profitable ads and pause underperforming ones, improving overall campaign effectiveness. The key takeaway: prioritize leads that bring in revenue, not just the cheapest options.

Takeaways

• 😀 Focus on leads that bring in revenue, not just cheap leads. Cost per lead doesn't guarantee profit.
• 😀 Cheap leads may look good at first, but they don’t always contribute to your bottom line.
• 😀 Automating ad performance tracking and scaling is crucial to avoid losing money on underperforming ads.
• 😀 ROAS (Return on Ad Spend) is a better metric than cost per lead when evaluating ad success.
• 😀 Use tracking tools, like roaz.org, to get accurate insights on ad performance and sales.
• 😀 Don't obsess over cheap leads; instead, optimize for leads that convert into sales.
• 😀 Retargeting audiences often yield better ROAS, but don't assume cheaper leads are always better.
• 😀 A simple strategy to optimize ad performance: pause underperforming ads and scale up successful ones.
• 😀 For long sales cycles, tracking leads beyond a 7-day attribution window is essential for accurate results.
• 😀 Use automation to pause ads with a low ROAS and increase budgets for ads that are generating profits.
• 😀 Ensure you're using automated rules to minimize manual monitoring and maximize campaign efficiency.

Q & A

Why do marketers focus on cheap leads, and is this always a good strategy?

Marketers often aim for cheap leads to minimize their costs in lead generation campaigns. However, the cheapest leads are not always the most profitable. The key is not just getting cheap leads but ensuring that those leads convert into sales and revenue.

How can tracking help in evaluating the value of leads in an ad campaign?

By using tracking tools like ROAS (Return on Ad Spend), you can determine not just the cost per lead but also how much revenue each lead generates. This helps assess the effectiveness of the leads in terms of actual sales, not just cost.

What role does automation play in optimizing ad campaigns for lead generation?

Automation helps by adjusting campaigns in real time based on performance. For example, it can pause underperforming ads and scale up those that bring in more revenue, optimizing the budget and increasing the overall effectiveness of the campaign.

Why is it important to not just focus on the cheapest leads in a campaign?

Focusing solely on the cheapest leads can lead to missed opportunities for higher-quality leads that may cost more but generate greater revenue. The goal should be to find leads that convert into sales, not just those that are inexpensive.

What is the difference between cheap leads and leads that generate revenue?

Cheap leads are those that cost very little to acquire, but they may not always lead to sales. On the other hand, leads that generate revenue are more likely to make a purchase, which is the ultimate goal of any lead generation campaign.

What does 'ROAS' mean, and why is it important in evaluating ad performance?

ROAS stands for Return on Ad Spend. It is a metric that measures the revenue generated from ads compared to the amount spent on them. A higher ROAS indicates a more profitable ad campaign, helping marketers identify which ads are truly successful.

How does the campaign's length affect the evaluation of leads?

The length of a campaign can affect the attribution window, which is how long after the lead generation a sale is tracked. In lead generation, longer sales cycles mean that you might need tools that track conversions beyond the typical 7-day attribution window used by social media platforms.

What are some strategies for improving ad campaign results using automation tools?

Automation tools can help improve results by automatically pausing underperforming ads and scaling up those that are bringing in revenue. By using rules based on ROAS, the system can optimize spending to focus on the ads that yield the best returns.

How can a marketer ensure that only profitable ads are scaled up?

By using automation to monitor the ROAS and set criteria for scaling, such as increasing the budget only if the ROAS is above a certain threshold, a marketer can ensure that they are only scaling up ads that are profitable.

What should a marketer focus on when running a lead generation campaign?

A marketer should focus on the quality of the leads, particularly on whether those leads are converting into sales. Rather than obsessing over the cost per lead, the primary focus should be on the return on investment and how much revenue is being generated from those leads.