Date First Published: 26th September 2022
Topic: Web Design & Development
Subtopic: Web Advertising
Article Type: Computer Terms & Definitions
Difficulty: MediumDifficulty Level: 5/10
Learn more about what a lead is in this article.
A lead describes contact made with a potential customer who shows interest in the products or services. Lead generation is the process of generating leads on the internet. Leads can be generated by running ads on search engines and advertising networks, such as Google Ads, which offers a display of ads relevant to the category of the website. With Google Ads, ads can appear on millions of different websites since Google Ads is widely used, attracting a wide variety of leads.
Advertisers can run PPC (pay per click) or PPL (pay per lead) ads. With PPC ads, advertisers are charged each time someone clicks through their ad on another site and visits their website and with PPL ads, advertisers are charged for each potential customer. For example, if a visitor clicks on an ad, is directed to the advertiser's website and chooses to sign up, a lead would be generated and the advertiser pays the publisher a small amount of money for that lead. Making a purchase is another example of a lead as a customer is connecting with a business and converting.
Lead generation is very important for business growth. Without any lead generation, a business would have a hard time attracting new customers and making a profit. Lead generation can help a business increase its sales, visibility, and trustworthiness, and reach a wider audience.
A lead is pronounced 'leed’, not 'le'’ or 'lee-ad'.
An online lead is generated when a potential customer fills out a form on a website. The number of required fields varies, based on the type of lead. An example of a lead is a form users sign up for when creating an account for an ecommerce website, which can 'lead' to sales for the company. This type of lead will ask for a lot of details, including first name, surname, email address, physical address, phone number, and payment details. Other leads, such as newsletter forms are simple and may only ask for an email address. These are examples of leads as they can be used to contact the potential customer at a later time.
A lead and a conversion are slightly different. A conversion occurs when a user performs a desired action on a website, such as signing up for a newsletter or making a purchase. A lead is when a new customer shows interest in a product or service and makes a connection. That new customer may make a few conversions, but they are only considered one lead. A lead refers to any customer, whilst a conversion refers to any action.
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