When using paid media strategies to grow your brand and acquire new customers, an often overlooked strategy is top of the funnel lead generation. As brands are looking for ways to reduce reliance on direct response campaigns, lead generation can be a key element of paid media activity that spans across the funnel.

However, as with all activity, any lead generation campaigns need to be carefully considered. The need for an attractive incentive, the right tone of voice, a comprehensive follow-up and allocating resource appropriately are all areas to evaluate.

Here is our guide to lead generation for paid media activity, and what to consider.

Incentives in lead generation

Lead generation is a straightforward acquisition strategy, targeting prospective users through a variety of audience segments such as ‘Broad’, ‘Lookalikes of high intent actions’, ‘Interests’ on Meta, or In ‘Market’ and ‘Affinity’ audiences on Google. However, the most important factor in asking users to take action for lead generation (whether this is email signup or otherwise) is the incentive. Lead generation only works when there is a tangible incentive for a user to take action. Below are some examples of some popular incentives:

1) Early access

Early access is an exclusive opportunity offered to consumers who have signed up, enabling them to browse and purchase items before they are available to the general public. This approach not only excites consumers about seeing products before others, but also strengthens the sense of exclusivity. Brands attract customers and encourage sign-ups, while customers enjoy the benefits of early product availability and beating the rush on launch day. Additionally, using FOMO tactics can further enhance the exclusivity element. If you're interested in learning more about how FOMO tactics influence consumer behaviour in paid media, you can read more here.

La Coqueta

lacoquetakids.com

La Coqueta captures viewers' attention through a combination of a simple, sleek design, and strategic variation in font sizes, effectively emphasising the core information needing to be communicated.

2) X% off your first order

Some brands incentivise users to sign up with the promise of a X% discount on their first order. Whilst this is seen as a valuable incentive tool, it does present challenges, as it may lead to a lower quality lead and a less valuable customer. Targeting customers that are only receptive to discounts and sale messaging can dilute the value of the customer base.

Eberjey

eberjey.com

Eberjey is another example of a simple yet impactful ad, using lifestyle imagery to effectively showcase and emphasise both the messaging and their products.

3) Refer a friend

According to a Nelson survey, 92% of respondents trust recommendations from friends and family above all other forms of advertising. Refer a friend schemes can incentivise users to provide their own details to sign up for email notifications, as well as a friend, in order to unlock benefits such as extra discounts. This system is built on a foundation of trust, which can have a positive impact by setting off a ripple effect, e.g. where the referred friend then refers another, and so on. However, this does often need another incentive to complement this (such as a £X off) to convince a user to refer a friend.

Huel

uk.huel.com

Huel enhances the 'refer a friend' message in their ad through visual representation, alongside utilising contrasting colours to ensure the messaging stands out.

4) Loyalty and rewards

Loyalty and reward programs can function both as a new customer acquisition tool, as well as to retain existing customers. Research found that 79% of consumers are more likely to repurchase with brands that offer loyalty programs, highlighting its appeal to consumers. These programs typically involve a points-earning system, where customers earn points with each purchase, redeemable for discounts on future orders. Points can also be earned through actions like creating an account, following social media accounts, or leaving reviews. When users provide their contact information in exchange for points, they benefit both immediately and in the long run, making loyalty and reward tactics a valuable tool for lead generation activities.

Charlotte Tilbury

charlottetilbury.com

In the Charlotte Tilbury ad, short snippets of bite-sized information are shown throughout to engage the viewer. By incorporating their best-selling items into the inspirational ad, it entices viewers to sign up to their loyalty scheme, ensuring access to exclusive discounts and offers to these products.

Key considerations for lead generation

An attractive incentive

An incentive is crucial to the success of lead generation activity, and the incentive must be attractive enough to get a user to provide their details. Weak initiatives that feel forced, or with little reward to the user will not drive the user to sign up.

Maintaining brand image

It is important for brands to align incentives with their tone of voice and brand image. For instance, a luxury fashion brand may avoid offering a 10% discount on the first purchase. This approach ensures and encourages only users with strong lifetime value, who are likely to repurchase, to sign up, rather than those motivated solely by a sale.

Email follow-ups

Leads will only benefit a brand if CRM lists are used effectively. Central to this is the implementation of email follow-ups, tapping into the customer list to create tailored flows that effectively engage users, based on the specific incentive they signed up for. Automation via integrations with Klaviyo, Ometria or other CRM platforms can help facilitate this.

Tailored creative

Showcasing the incentive clearly in ad creative is essential. Relying solely on generic creative will not effectively generate leads, as users won't grasp the key benefits or reasons to sign up. Time must therefore be invested into creating tailored assets to fit the purpose of each lead generation campaign.

Pros and cons of lead generation

Pros

1. Reduces reliance on Direct Response - expanding the scope of new customer acquisition strategy not only lessens dependency on Direct Response campaigns, but it also makes use of Meta’s lead generation campaign objectives.
2. Reach high intent users - Lead generation also represents a way to reach high intent users, who express a high interest in the business by signing up to email notifications.
3. Supporting email strategy - Lead generation will support in seeding customer lists to be reached by email flows. If new incentives such as loyalty programs are launched, paid activity can support in driving sign ups for this activity.
4. Reduce drop off - The journey to a purchase can be uncertain, where people drop off before purchasing or providing their details. Providing a short lead form, which auto populates contact details, can help here.
5. Cost efficiency - Acquisition of leads is often very cheap, with average leads on Meta being around £1. Following up via email can therefore lead to very efficient NCA and CPA.

Cons

1. Resource allocation - Tailored assets, campaign builds, management of lists and segments in a CRM system, can all lead to a significant investment of time into managing this activity effectively. This should be factored into the planning and whether the correct resourcing is available.
2. Incentives must be in place - Loyalty programs, refer a friend, or pre-access to collections must be structured and in place ahead of time. Without this, lead generation will not be possible
3. Long term thinking - The benefits of lead generation may not always be clear in the short term. A lead may not convert straight away, and so a long term view of this activity must be adopted to evaluate the success of this activity.

Final thoughts

Recognising the importance of incentives in acquiring new customers is crucial, and when paired with a thorough understanding of the target audience, it will help to create and optimise an efficient lead generation strategy. However, brands need to ensure that these activities align with the overall brand image and voice to maintain consistency across all touchpoints.

The key incentives in lead generation include:

• Pre-access offers to create a sense of scarcity and exclusivity
• Providing a X% off the first order
• Implementing a refer a friend scheme
• Establishing loyalty and reward programs

If you would like support in building a paid media strategy to support CAC and CLTV, please do not hesitate to contact us.