Per inquiry advertising
Encyclopedia
Per-inquiry advertising (PI) – also known variously as cost per lead (CPL), pay per lead (PPL) or cost per action(CPA)- is a form of direct response marketing in which the advertiser receives free ad time and space while paying only for results. In return, the advertiser gives up control of where and when the ads will run.
Agencies that offer PI have relationships with media outlets – radio, television, print, Internet, movie screens and billboards – and access to their unsold inventory of ad time and space. The agency acquires the rights to the unsold time and/or space and places the ads as it becomes available.
The advertisers pay only for qualified responses. What constitutes a response is negotiated between client and PI advertising agency. Packages can be structured for a variety of results: per inquiry (any response), per lead (name and contact information) – even per sale.
For PI to work, the responses must be trackable. Some PI advertising firms also provide exclusive toll-free numbers and Web addresses for potential customers to respond. A few go so far as to field responses and arrange fulfillment on behalf of their clients.
One of the earliest individuals to apply PI successfully was Tony Alberti, the President of Stardust Broadcasting, when he was in charge of all media buying for the Stardust Hotel in the 60's. Currently direct response agencies such as InfoWorx Direct offer per inquiry or PI advertising on TV and Radio.
PI appeals to clients who care about how well their advertising works, not necessarily when or where it runs. It allows companies to boost business without the usual risks associated with advertising and establish stable, predictable CPL within their business plans, assuring a positive return on investment
(ROI).
Agencies that offer PI have relationships with media outlets – radio, television, print, Internet, movie screens and billboards – and access to their unsold inventory of ad time and space. The agency acquires the rights to the unsold time and/or space and places the ads as it becomes available.
The advertisers pay only for qualified responses. What constitutes a response is negotiated between client and PI advertising agency. Packages can be structured for a variety of results: per inquiry (any response), per lead (name and contact information) – even per sale.
For PI to work, the responses must be trackable. Some PI advertising firms also provide exclusive toll-free numbers and Web addresses for potential customers to respond. A few go so far as to field responses and arrange fulfillment on behalf of their clients.
One of the earliest individuals to apply PI successfully was Tony Alberti, the President of Stardust Broadcasting, when he was in charge of all media buying for the Stardust Hotel in the 60's. Currently direct response agencies such as InfoWorx Direct offer per inquiry or PI advertising on TV and Radio.
PI appeals to clients who care about how well their advertising works, not necessarily when or where it runs. It allows companies to boost business without the usual risks associated with advertising and establish stable, predictable CPL within their business plans, assuring a positive return on investment
Return on investment
Return on investment is one way of considering profits in relation to capital invested. Return on assets , return on net assets , return on capital and return on invested capital are similar measures with variations on how “investment” is defined.Marketing not only influences net profits but also...
(ROI).