What Can I Afford To Pay For A Lead From Paid Ads?

If you are generating leads with Google Ads or any other intent-driven paid advertising, you will begin to find that a lead from paid ads can cost more than leads from other sources while still achieving the same profit in the end.

This is because the conversion rate of those leads is much likely to be higher. Google Ads will find the low-hanging fruit; The algorithm is great at knowing what it's users intentions are and shows the ads to people who have shown an strong interest or an intent to buy.

Here are some statistics on the subject:

  • Website visitors that come through PPC make purchases 50 percent more often than visitors that come through organic sources. (Unbounce)
  • Leads from search engines have a 14.6% close rate, while outbound leads (ex. cold-calling, direct mail, etc.) have a 1.7% close rate (Junto, 2019-2020)
  • Click-throughs from PPC results convert at a 1.5 times higher rate than their organic counterparts. (New Media Campaigns)

So, when you're just starting out with Google Ads, it's important to gather conversion data first and find the conversion rate for this new marketing channel.