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B2B Demand Gen Audiences vs. Lead Gen Audiences: A Strategic Guide
Written by Christian Holst
In B2B marketing, generating quality leads and creating demand for your product or service are both essential, yet distinct strategies.
As companies navigate these strategies, it's critical to understand the differences between demand generation (demand gen) audiences and lead generation (lead gen) audiences.
These two approaches require different tactics, mindsets, and measurements of success.
This article will provide a strategic guide to understanding these audiences and how to effectively target them.
What Are Demand Gen Audiences in B2B?
Demand generation (demand gen) is the process of creating awareness and interest in your product or service among a broader audience. In B2B, demand gen is about sparking curiosity and educating your target audience on the value of your offering before they are even ready to make a purchase. This strategy focuses on building relationships, establishing brand authority, and nurturing long-term opportunities, rather than directly seeking out leads for immediate sales.
Key Characteristics of Demand Gen Audiences:
Early-Stage Awareness: Demand gen audiences are often in the awareness or consideration phase of the buyer's journey. They might not know they have a problem or they may be just beginning to explore solutions.
Broader Reach: These audiences are typically larger and less defined than lead gen audiences. The goal is to cast a wider net and engage with individuals or companies that may not be actively looking for a solution but could benefit from it.
Content Engagement: Demand gen is heavily content-driven. Target audiences are engaged through thought leadership, educational content, webinars, blog posts, ebooks, and case studies. The goal is to offer valuable, insightful content that helps nurture trust.
Long-Term Relationship Building: The aim of demand gen is not necessarily to convert immediately but to position the brand as a trusted resource for when the audience is ready to buy.
Examples of Demand Gen Tactics:
Sponsored content and display ads to increase brand visibility.
Webinars, thought leadership articles, and whitepapers to educate and inform.
Social media posts and paid social ads to raise awareness.
How Lead Gen Audiences Differ from Demand Gen Audiences
In contrast to demand generation, lead generation (lead gen) focuses on identifying and capturing individuals or companies who are ready to make a purchasing decision or are actively considering solutions in the market. Lead gen audiences are typically further down the sales funnel than demand gen audiences and exhibit clear buying intent.
Key Characteristics of Lead Gen Audiences:
Mid to Late-Stage in the Buyer’s Journey: Lead gen audiences are usually in the decision-making phase. They have a clear understanding of their needs and are actively evaluating products or services that meet those needs.
Highly Targeted: Lead gen audiences are more specific and refined than demand gen audiences. These individuals or companies have shown a tangible interest in your product or service, making them more likely to convert into paying customers.
Action-Oriented: Lead generation often involves direct calls to action (CTAs) such as "Download a demo," "Request a quote," or "Sign up for a free trial." The goal is to capture contact information and qualify leads for follow-up sales conversations.
Shorter Sales Cycle: Lead gen audiences typically have a shorter sales cycle, as they are actively looking to solve a problem and are evaluating solutions. The role of lead gen is to facilitate the conversion from interest to purchase.
Examples of Lead Gen Tactics:
Lead magnets like free trials, consultations, or product demos to encourage conversions.
Landing pages with forms for users to fill out in exchange for gated content or offers.
Email campaigns with specific offers, discounts, or calls to action aimed at moving leads through the sales funnel.
Best Practices for Targeting Lead Gen vs. Demand Gen Audiences
Targeting demand gen and lead gen audiences requires a nuanced strategy, as each audience type demands different tactics. Here’s how to approach each effectively:
1. For Demand Gen Audiences:
Focus on Education, Not Selling: When targeting demand gen audiences, your content should focus on educating and raising awareness. Avoid overly sales-focused messaging. The goal is to offer value first—be it through educational articles, how-to guides, or industry insights.
Use Broad Targeting and Top-of-Funnel Content: Leverage broad targeting on platforms like LinkedIn, Facebook, or Google Display Network to increase visibility among relevant industries or job titles. Your content should speak to challenges, pain points, and broader industry trends rather than offering direct solutions.
Be Patient and Nurture Relationships: Demand gen is a long-term strategy. Keep nurturing the relationship through consistent follow-ups, retargeting ads, and ongoing engagement with relevant content.
Test Different Channels and Messaging: Since demand gen campaigns are designed to attract a broad audience, it’s essential to test various channels (email, social media, search ads) and messaging to see what resonates best with your audience.
2. For Lead Gen Audiences:
Create Actionable Offers: Unlike demand gen, lead gen tactics should be focused on clear and compelling offers that move the audience toward conversion. Provide high-value offers like product demos, free trials, or consultations that are easy to access and promise immediate value.
Segment and Target Precisely: Lead gen requires more precise targeting. Use firmographic data (e.g., company size, revenue, industry) and behavioral signals (e.g., content downloads, email clicks) to hone in on individuals who are most likely to convert.
Use Shorter, Conversion-Oriented Content: Unlike the long-form educational content used in demand gen, lead gen content should be concise, action-oriented, and tailored to specific pain points. Examples include landing pages with clear calls to action, eBooks, case studies, or whitepapers designed to convert.
Lead Scoring and Nurturing: Not all leads are created equal. Use lead scoring systems to rank leads based on their level of interest and engagement. Nurture leads with follow-up emails, retargeting ads, or personalized outreach to keep them engaged until they are ready to convert.
Using Audience Insights for Better Results in Both Strategies
Whether you're running demand gen or lead gen campaigns, the use of audience insights is crucial for driving better results. By leveraging data and insights, you can tailor your messaging and outreach strategies to the specific needs of your target audience.
1. Gathering Audience Insights
CRM Data: Customer Relationship Management (CRM) platforms like Salesforce can provide valuable insights into who your current customers are, which industries they belong to, and how they interact with your content.
Website Analytics: Tools like Google Analytics or Hotjar can help you understand the behaviors of website visitors—what pages they visit, what content they consume, and where they drop off.
Social Media Analytics: Social media platforms provide valuable data about how your audience engages with your content. Use this information to adjust your targeting strategy and messaging.
2. Applying Insights to Campaigns
For demand gen, insights help you identify which types of content and channels resonate with your audience. They also allow you to uncover broader industry trends, which can inform your thought leadership content and educational offers.
For lead gen, audience insights help you identify high-intent individuals, enabling more precise targeting and better lead scoring. Use behavioral data such as downloads, form submissions, or email engagement to determine which leads are ready for sales outreach.
3. Optimizing Campaigns Based on Results
In both strategies, analyzing campaign results and optimizing based on performance is crucial. Look for patterns in audience behavior and continuously adjust your targeting, content, and offers to improve outcomes. Testing various approaches, refining your segments, and continually measuring ROI will ensure you get the most out of your marketing efforts.
Conclusion
Understanding the differences between B2B demand gen audiences and lead gen audiences is critical for designing successful marketing strategies. Demand gen is all about creating awareness, building relationships, and nurturing prospects over time, while lead gen is focused on capturing qualified leads who are ready to convert.
By targeting these two audiences strategically with the right content and approaches, you can drive greater engagement, improve conversion rates, and ultimately increase revenue. Use audience insights to fine-tune your tactics and ensure that both demand and lead gen strategies align with your business goals.