Why Do Advertisers Need to Use Lead Generation?

Why Do Advertisers Need to Use Lead Generation?

Payam Hanafizadeh (Department of Industrial Management, School of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran), Mehdi Behboudi (Department of Business Management, School of Management and Accountancy, Islamic Azad University - Qazvin Branch, Qazvin, Iran), Ateneh Qodsi Khah (Young Researchers Club, Islamic Azad University - Qazvin Branch, Qazvin, Iran) and Marzieh Ardalani (Young Researchers Club, Islamic Azad University - Qazvin Branch, Qazvin, Iran)
Copyright: © 2013 |Pages: 7
DOI: 10.4018/jide.2013040102
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Abstract

As evidence mounts on the importance of online advertising and the opportunities presented by new-shaped lead generation companies globally, it becomes important to understand the key issues that determine what the lead generation is and how does it works? Therefore, the key contribution of this article to current knowledge is the development of a conceptualization, supported by the literature that will provide an interpretation of what determines advertising successful on the Internet. Critically, this is the first article to explain the important role that how the business and specifically small business are able to advertise for right user at right time.
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Understanding The Online Lead Generation

Globalization and the increasing popularity of the internet mean that the internet is becoming a powerful marketing tool for converting innovation to economic value for business (Fu & Wu, 2010). The goal of advertising is to deliver messages that positively influence current or prospective customers. Given that advertising has such an influence on customers, corporations spend considerable time and funds creating and placing advertisements. As such, US advertising expenditure are around $320 billion (Green & Elgin, 2001). When firms realize that their web site can be a significant medium for interacting with present and prospective customers; they should also recognize that Internet advertising is an integral element of corporate advertising strategy (Boudreau et al., 2006). Figure 1 demonstrates the internet’s role in lead generation.

Figure 1.

How do lead generations work?

The present study, with a look on presence in the internet and applying its unique tools, focuses on identifying users’ behaviors rather than observing, estimating, or predicting it. This study states that marketers, employing appropriate tools, can exactly identify user’s behavior and present the appropriate goods in his surfing path. Thus, the aim of the present study is to offer primary insights into employing lead generation companies so that the researchers of advertising treat and study it as a tool for identifying online behavior. The main features of this concept are presented in the following.

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