Lead Generation & Marketing Blog

Gain helpful insight on how to help your company close more deals and increase your ROI. Our professional marketing teams shares their secrets to successful marketing and sales.

Common marketing terms and lingoWe speak to a lot of new and current clients daily. Many times they do not understand our lingo. We have provided an ongoing list of terms we use so that you may better understand what in the world we are talking about. We will add to this list weekly as more questions come our way. Of course if you have a question then just ask!

ROI (Return on Investment)

ROI is the return you get on money you spent to fund a lead campaign. If you purchased $1000.00 in leads and those leads earned a profit of $1000.00 then your ROI or Return on Investment would be 100%. Sounds like a good deal to us!

CPM (Cost-per-Thousand)

CPM pricing models charge advertisers for impressions — i.e. the number of times people view an advertisement. Display advertising is commonly sold on a CPM pricing model. The problem with CPM advertising is that advertisers are charged even if the target audience does not click on (or even view) the advertisement.

CPC (Cost-per-Click)

CPC advertising overcomes this problem by charging advertisers only when the consumer clicks on the advertisement. However, due to increased competition, search keywords have become very expensive. A 2007 Doubleclick Performics Search trends report shows that there were nearly six times as many keywords with a cost per click (CPC) of more than $1 in January 2007 than the prior year. The cost per keyword increased by 33% and the cost per click rose by as much as 55%.

PPA (Pay-Per-Action)

PPA advertising solves risk of CPM and CPC by charging only by the lead. Like CPC, the price per lead can be bid up by demand. Also like CPC, there are ways that providers can commit fraud by manufacturing leads or blending one source of lead with another (example: search-driven leads with co-registration leads)to generate higher profits.

 
by Anthony Urso on Jan 08, 2012
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