Why Demystifying the True Cost of Outcomes in Digital Advertising Will Lead to Business Success
Picture this. Business was going great, and then some unexpected changes happened. There was COVID-19. But you also realised that more and more of consumers are going digital, and your competitors are too.
As a marketer you were used to being measured on things like clicks, impressions, website traffic. All useful for gauging if your content is impactful or brand-building is working. But now, your management wants you to deliver business results on a tighter budget. How do you transition?
If you’re in sales, then going out and meeting prospects is no longer an option. Maybe you’re expecting leads from your marketing team, but the leads they’re sending in are mostly junk. Sounds familiar? Here’s where the concept of “cost-per-lead” and “cost-per-outcome” pricing models come in. The concept is fairly simple. Instead of paying advertising agencies to bring in “leads” and paying them a portion of their media spend as fees, marketing and sales teams can insist on actual business outcomes like successful loan applications, purchase of a luxury vehicle, down-payment of a college student’s first-year fees and more.