Should you be spending money on lead generation for your business?

We’ll answer this question below, plus give you some ways to make sure your lead generation strategy translates to your bottom line.

Table of Contents:

  • Is Lead Generation Profitable?
  • How to Make Lead Generation Profitable for Your Business
  • Conclusion

First, the big question:

Is Lead Generation Profitable?

In 2021, US-based marketers spent 35% more on lead generation advertising than in 2020 (from 3.4 billion to 4.6 billion dollars). Yes, billion!

So is lead generation profitable? It’s so profitable that businesses are spending billions of dollars on it.

Lead generation is always a high priority for marketers, because leads become customers. It’s a simple as that.

Lead generation simply means finding people who would be a good candidate for your product and getting them to engage with you.

You can read more about how it works in our primer on B2B lead generation.

Overall, spending on marketing is increasing year after year. That means that lead generation is becoming more and more difficult, as more businesses throw their hats into the ring.

So how can you make sure that your lead generation campaigns are a success?

How to Make Lead Generation Profitable For Your Business

Understand the Difference Between B2B and B2C Marketing

First, it’s important to understand the difference between B2B and B2C marketing. B2B marketing takes a totally different approach than B2C, and if you want to generate qualified leads for your business, you’ll want to understand what that looks like.

We’ve broken down the differences in this article if you’d like to brush up on the topic.

Clearly State The Value of Your Products

According to Statista, the #1 reason why B2B marketers struggle with lead generation is because prospective customers don’t understand the value of their products (source).

Even if you spend billions of dollars on lead generation, it doesn’t work if people aren’t interested in what you’re selling.

The solution is to better understand the value of your product for your target market, then state it more clearly in your marketing materials. (A qualified marketing agency can help with that.)

Know How to Reach Your Target Audience

The second reason why B2B marketers struggle with lead generation (according to the same Statista study as above) is that they have trouble reaching a niche audience.

The truth is, no one is fully disconnected from digital content or advertising. (Unless your target is living off the grid deep in the mountains, and if so, maybe pick a different target market for your product that’s easier to find.)

If you do enough research into your target market, you’ll discover the content they consume and the platforms they use, and you’ll start finding ways to reach them.

Partner With An Experienced Marketing Firm

Of course, you could cobble together your own lead generation strategy based on some of the ideas we shared above. Or you could hire an experienced marketing agency with years of experience to make the whole experience smoother and more successful.

ReelAxis provides marketing services for the technology industry, including growth hacking, social media management, thought leadership, and more. Book a demo to learn more.

Conclusion

So is lead generation profitable? The answer is a resounding yes! And if you do it right, it can be a powerful arsenal in your marketing toolkit.

About ReelAxis

ReelAxis is a global B2B marketing agency powered by tech industry insiders. We help you generate more leads through SEO, email, social media, digital ads, print and offline media, video, and more. Book a demo to learn how we can partner with you to make your B2B marketing strategy a success.