Google Adwords still stand at the forefront for PPC advertising as indicated in the diagram above from the 2013 State of Paid Search Report. While many frown on paid advertising as a digital marketing tool, these experts believe that PPC ads is still a very viable and high quality resource for generating valuable leads and will most likely continue on this thread for years to come. New businesses can quickly generate their much needed leads using PPC ads, and veteran digital marketers will continue to make use of this important tool for generating good results that will push them towards their goals.
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Lead generation falls within the second stage of the inbound marketing methodology. It occurs after you've attracted an audience and are ready to convert those visitors into leads for your sales team (namely sales-qualified leads). As you can see in the diagram below, generating leads is a fundamental point in an individual's journey to becoming a delighted customer.
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Cost per click advertising (e.g. AdWords, Yahoo! Search Marketing) overcomes this problem by charging advertisers only when the consumer clicks on the advertisement. However, due to increased competition, search keywords have become very expensive. A 2007 Doubleclick Performics Search trends report shows that there were nearly six times as many keywords with a cost per click (CPC) of more than $1 in January 2007 than the prior year. The cost per keyword increased by 33% and the cost per click rose by as much as 55%.