What A Lead Generation Conference Taught Me About Fixing Ad Ops

A Lead Generation Conference’s Unexpected Lesson: Fixing Ad Ops

I didn’t expect to walk into a lead generation and customer acquisition-focused event and come out thinking about ad ops. But that’s exactly what happened when I traveled to Las Vegas for Leadscon last week. The conference, which brought together industry experts and thought leaders in the lead generation space, offered valuable insights into the world of ad operations.

The Intersection of Lead Gen and Programmatic

Lead gen and programmatic tend to live in different corners of the ecosystem. Lead gen is obsessed with calls and conversions, while programmatic is focused on impressions and yield. However, as I sat through sessions on customer lifetime value and creator-led video performance, it became clear to me that lead gen and programmatic folks are trying to solve the same problem, just from different angles. Both are wrestling with the hard truth that they’ve spent years optimizing for the wrong signals.

The Problem with Current Ad Ops Metrics

For ad ops teams, that usually means cheap CPMs, cost per acquisition, and volume. But those metrics rarely answer the question that finance and leadership actually care about, which is whether you’re targeting people with the potential for high lifetime value. The issue is that these metrics are insufficient for measuring the true effectiveness of ad ops. They’re often focused on short-term gains, rather than long-term value.

Rethinking Performance with an Eye on LTV

But what does “good” targeting look like? It means optimizing for value over volume. This approach requires a fundamental shift in how ad ops teams measure performance. Instead of focusing on cheap CPMs and cost per acquisition, teams should prioritize metrics that reflect the long-term value of a customer. Customer Lifetime Value (LTV) is becoming a critical metric for ad ops teams.

What “Good” Targeting Looks Like

Take online insurance marketplace eHealth, which built its lead-gen operating model to drive calls, route them to any available agent, close an enrollment and move on. Sounds efficient on paper, but eHealth was losing close to $100 million annually. That changed, however, said eHealth CRO Michelle Barbeau, when the company stopped treating each conversion as the finish line. Instead of optimizing for one-off transactions, eHealth began connecting interactions over time. eHealth assigned a customer a primary advisor who stayed with them, policies were tied to a single profile and success metrics expanded beyond initial enrollment to include renewals.

• Key benefits of this approach include:
  • Increased renewals
  • Reduced losses
  • Improved customer lifetime value

This new approach allowed eHealth to focus on building long-term relationships with customers, rather than just trying to acquire them. By prioritizing LTV, eHealth was able to transform its lead-gen operating model and achieve significant improvements.

The Buy-Side Trend of Convergence

My experience at Leadscon highlights a growing trend of convergence between lead gen and programmatic. As the ad tech industry continues to evolve, we can expect to see more overlap between these two traditionally separate areas. The lines between lead gen and programmatic are blurring, and advertisers are looking for ways to unify their marketing efforts.

The Rise of LTV as a Key Performance Indicator

The article suggests that LTV is becoming a critical metric for ad ops teams. As the industry shifts towards more sophisticated measurement and optimization techniques, LTV is likely to become an increasingly important KPI for advertisers and publishers alike. Rakuten And Impact.com Forge A New Alliance That Resets The Affiliate Industry, which shows how affiliate marketing is also shifting towards more performance-based models.

Conclusion

In conclusion, my main takeaway from Leadscon is that nothing will save you, including better measurement, if you insist on optimizing for volume over value. It’s time for ad ops teams to rethink their metrics and prioritize LTV. By doing so, teams can build long-term relationships with customers, drive revenue growth, and achieve better outcomes. The future of ad ops depends on it.