2019 was the 12th anniversary of Leadscon, the most important conference of the lead generation industry in the US. If finding, nurturing and converting quality leads is essential to your business, Leadscon is the place to be.
That’s why, this year again, Leadscon Las Vegas was an opportunity to meet lead sellers and buyers, agencies, tech companies, private equity firms and investment banking firms. Some key players in the industry were even there, not as attendees, but only attend meetings with their key partners.
A big market under pressure
It must be said that if all of those people want a seat around the table, it’s also because the lead generation market is a very big one. As a recent strategic Colonnade study has pointed out, the industry size was around $22 billions in 2018 and the spending on advertising was $208 billions.
And in a recent survey, 70% of marketers say their lead gen budgets will increase.
However, during the past 10 years, the rules of Telephone Consumer Protection Act (TCPA) have become tougher and thus, all the actors of lead generation are feeling the squeeze. To illustrate this, 3 large leads buyers shared with us they had to shut down some of their top lead generators’ campaign because of complaints from prospects. They now look for transparent partners and implement solution as Jornaya / active prospect on all new partners in their affiliate programs.
The keyword is “transparency”
In addition to TCPA compliance, there is also the question of transparency. Most companies say they look for transparency and data integration on both sides of the lead generation process.
In this respect, Jornaya made its presence very strong at Leadscon: from their welcome party on Monday night to having their CEO Ross Shanken be onstage for the first keynote on Tuesday.
The topic of the discussion was about “The state of the Industry: Surveying Customer Acquisition Today” in which he stated “the industry is at an inflection point with a tremendous opportunity to fundamentally transform the way business is conducted”.
What future do we see for the industry?
Richard Hill, CMO of the home security company DEFENDERS, and Joe Orr, EVP of Clearlink Insurance, both shared their vision of the future of lead generation during Leadscon.
While previous efforts focused on the channel, the future will bring more focus on lead context because quality can be found in every channel. To do this, both vendors and buyers need to generalize and standardize their lead disposition exchanges, as today the industry is only having “best practices.” One of the key questions of the conference was: “are your lead vendors using the data provide them, and are they optimizing their revenue or the lead quality?”
The lead generation market has a great opportunity to become more efficient by becoming more transparent and using data in a meaningful way. The market is fast growing, while still fragmented, making it very attractive to Private Equity Firms. Lead generators hold the value, as lead buyers rely on the steadiness and the quality of their lead flow. PE firms have billions to deploy right now, and are looking for “platforms” to do build-up and grow companies faster and stronger. For instance, Red Ventures, with the help of PE Fund Silver Lake, has made 6 acquisitions since May 2015.
In a nutshell, the lead generation industry and its actors have yet a long life ahead, but they have to be careful about the way they operate the value chain. We can’t wait to see you in September for Leadscon Boston!