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Pay-Per-Click (PPC) advertising is the fastest but most expensive way to generate leads, acting like a faucet you can turn on and off. The ideal strategy is to use it for immediate lead flow while simultaneously investing in brand building, which encourages customers to search for your company directly, lowering acquisition costs over time.

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Stop spending money to test ads. Instead, publish a high volume of organic social content and identify what naturally gains traction. Then, convert only those proven, high-performing pieces into paid ads. This model dramatically lowers customer acquisition costs by ensuring ad spend only scales winners.

The home services industry became addicted to trackable digital marketing, leading to inflated acquisition costs. Building a strong brand makes you the default choice, driving cheaper, high-intent branded searches and lowering overall customer acquisition costs over the long term.

Digital marketing has conditioned businesses to equate investment with clicks. However, the true function of advertising is to capture attention, which builds awareness. This awareness is what prompts a customer to seek you out when they have a need, making clicks and calls a byproduct of prior attention-grabbing efforts.

Focusing on a low Cost Per Lead is a common mistake; cheap leads often fail to convert. The more meaningful metric is Customer Acquisition Cost—total marketing spend divided by actual new customers. This shifts focus from lead volume to profitable growth and true campaign effectiveness.

A blended CAC across all channels hides crucial information. By calculating CAC for each individual platform or method (e.g., paid ads, content, outreach), businesses can identify their most efficient channels. This allows them to reallocate budget and effort to the highest-performing areas for more profitable growth.

It's wrong to dismiss channels like billboards because they lack direct, one-to-one conversion tracking. Their purpose isn't immediate action but to build top-of-funnel awareness. When a potential customer later searches for your service, they are more likely to choose your company from the results because they recognize and have a pre-existing preference for your brand.

Before spending on paid ads, businesses must have systems to handle incoming leads. A CRM manages volume, while automated nurturing sequences capture value from the two-thirds of leads who don't convert immediately. Without these, ad spend is inefficient and long-term value is lost.

Optimizing for cheap leads can attract low-quality subscribers who don't convert. MarketBeat found greater profitability by paying more per subscriber from reputable sources, which resulted in a much higher return on ad spend (ROAS).

As a brand becomes stronger, customers begin searching for the company by name rather than generic terms like "AC repair." This shift reduces reliance on expensive lead aggregators and paid search keywords, lowering the overall cost per lead as direct traffic is more efficient and converts better.

Counterintuitively, dedicating budget to campaigns optimized for engagements, follows, and shares can be a powerful brand-building tool. This approach reaches more people less expensively than conversion campaigns, building an audience and 'searing memories' that lead to future demand, complementing direct response efforts.

Use PPC as a 'Lead Faucet' While Building a Brand to Reduce Long-Term Costs | RiffOn