When Should You Use Paid Ads Instead of a Giveaway?

Use paid ads when timing and buying intent matter more than cost. Use a giveaway when you want an audience you can market to again.

Paid ads usually win when:

  • People are already searching for what you sell, and a search ad can catch them at the moment they want to buy.
  • You need a predictable number of leads or sales by a fixed date.
  • You're targeting a short list of high-value accounts, as in B2B.

A giveaway usually wins when:

  • You want email subscribers or followers you keep after the campaign ends.
  • Your audience doesn't know they need you yet, so there's no search demand to capture.
  • You want entrants to spread the word. Viral Share gives them entries when friends enter through their link.

Plenty of brands use both, with ads putting a giveaway in front of the right people and the giveaway turning that traffic into subscribers. Whichever you pick, compare cost per customer as well as cost per lead, because ad clicks and giveaway entrants buy at different rates.

What Is A Good Cost Per Lead?

There's no universal figure. A good cost per lead is one lower than your other channels, for leads that go on to buy at a similar rate.

How Do I Calculate Cost Per Lead?

Divide what the campaign cost by the new leads it brought in. A $620 giveaway that gets 2,000 new subscribers costs $0.31 per lead.