Paid search advertising is a dominant tool for generating leads, yet it presents distinct challenges that aren’t as commonly encountered with e-commerce accounts.
In this post we will investigate common issues in lead generation accounts and how to tackle them effectively.
Low-Quality Leads
Problem: One of the biggest frustrations in lead generation is receiving low-quality leads. These leads may have no potential for conversion, wasting your budget and time.
Solution: In addition to using negative keywords and targeting your ads effectively, consider using more complex forms.
Adding fields that require more detailed information can help you filter out low-intent leads.
While shorter forms can increase conversion rates, longer forms qualify leads by making them commit more effort, signaling stronger intent.
Another option is to shift your focus from form fills or phone calls to more educational content, such as white paper downloads or webinar signups. Typically, a whitepaper or a webinar conversion is higher in the funnel, however these actions can signal higher intent than optimizing directly for the form fill.
These actions require more commitment from the prospect and often attract leads that are truly interested in learning about your brand.
Based on your campaign’s volume and budget, you can either optimize for the specific actions mentioned above or develop a lead scoring system and implement a value-based bidding strategy.
Value-based bidding involves informing the search engine of the relative worth you assign to different actions, such as a form submission compared to a webinar sign-up then using a maximize conversion value bid strategy that is commonly used in e-commerce accounts.
High Cost Per Lead (CPL)
Problem: The cost per lead can be high, often due to increased competition as more businesses utilize paid search. PPC is no longer a hidden tactic, and costs rise as more advertisers enter the space.
Solution: One way to combat rising CPCs is to regionalize your campaigns. Focus on geographic areas where you can win—places where competition may be lower and where you have a better chance of success.
Day-parting is another useful tactic, especially if phone calls are your primary goal.
By running ads only during the hours your audience is likely to call, you can stretch your budget further.
Lastly, deter irrelevant clicks by writing highly specific ad copy that filters out users who aren’t serious prospects.
The more relevant and clear your messaging, the less likely you’ll waste spend on unqualified clicks.
Limited Budget
Problem: A restricted budget can limit how much reach and visibility your campaigns can achieve, making it harder to generate leads effectively.
Solution: In addition to prioritizing your highest-performing keywords and campaigns, consider asking for a conversion action that has less commitment. For example if you are running paid search for an event venue, instead of optimizing campaigns for ‘book now’, you can optimize the campaigns for ‘schedule a tour’ and then leverage the tour to close the deal.
Selecting the right bid strategy is crucial too—automated strategies like Maximize Conversions may not always be ideal for small budgets. Consider manual bidding or more controlled automation to fine-tune your approach.
Refining your landing page and ad copy to dissuade irrelevant traffic is another key step to ensuring every click counts.
If budget constraints are significant, exploring other channels like Bing or YouTube may also help. Bing often has lower CPCs and less competition, while YouTube offers cheaper awareness opportunities.
However, when running YouTube or other awareness campaigns, ensure you have a solid SEO strategy in place to capture any traffic that results from increased brand awareness.
Low Click-Through Rates (CTRs)
Problem: A low CTR may seem concerning at first glance, but in B2B lead generation, especially when dealing with niche products or services, this isn’t always a red flag.
Solution: In some cases, a low CTR is a sign that you’re filtering out unqualified clicks. This is common in B2B, particularly when your product or service overlaps with consumer markets.
However, low CTRs can also affect your CPC, as Google uses CTR as a signal for ad quality. So, while you don’t want irrelevant clicks, it’s important to find a balance between deterring non-converting traffic and maintaining a positive quality score.
Testing different ad variations, including more compelling CTAs, can help boost CTR without sacrificing lead quality.
Competition
Problem: As the paid search landscape evolves, competition for keywords becomes increasingly fierce. Google and Bing have broadened keyword match types, making targeting less precise.
Solution: While broad match keywords and expanded targeting can increase reach, they also mean your ads may show for less relevant searches.
To combat this, regularly update your negative keyword list and monitor search terms reports to exclude irrelevant traffic.
Additionally, focus on long-tail keywords that are highly specific and likely to generate higher-quality leads. These terms often have lower competition, allowing you to avoid bidding wars for generic keywords.
Performance Max (PMax)
Problem: There’s been a lot of chatter in the PPC industry that Performance Max campaigns don’t work well for lead generation and tend to generate spam leads.
Solution: While PMax is still relatively new, it’s clear that Google is heavily pushing this campaign type.
Rather than avoiding it, consider testing PMax in a controlled environment.
Using more complex forms in your lead capture process can help deter spam and filter out low-quality leads.
Additionally, the insights PMax provides on audience segments and creative performance can offer value across other parts of your paid search strategy.
Since this is where Google seems to be heading, it’s worth testing PMax and learning how to navigate its quirks sooner rather than later.
Conclusion
Paid search lead generation is a powerful tool for businesses seeking to grow, but it’s not without challenges.
By addressing low-quality leads with longer forms, mitigating high CPL with regional strategies, and refining campaigns for limited budgets, you can improve your results.
Don’t be discouraged by low CTRs in B2B or the ever-evolving competition—these are opportunities to sharpen your approach.
And finally, don’t discount new tools like Performance Max. With careful testing and a willingness to adapt, you can overcome these obstacles and generate high-quality leads through paid search.
