When a lead is generated through advertising, the marketing process, or another source such as a face-to-face encounter, the lead is usually characterized as a prospective customer. At that point, the salesperson will designate that the prospect is “in the funnel”. This is only the start of transit of the lead through the imaginary “sales funnel”. The early funnel area is represented by the opening at the top, in the accompanying diagram.
Principles Of Conversion
Whether a search campaign is for lead generation or eCommerce, each type of conversion needs to be assigned a value.
Here, we are focused on lead generation campaigns, which include the majority of search campaigns. For example, advertising a service business where leads (sales inquiries) are handled by a sales organization. We have a separate article about this topic for e-commerce search campaigns.
By assigning a conversion value, we are able to measure the two most important metrics for a search campaign: ‘return on ad spend’, and ‘advertising margin’. Even more importantly, we are able to inform the automated bidding system in relative terms how valuable a conversion is. So the automated bidding will be more aggressive in bidding for more valuable conversions.