Ever feel like you're constantly chasing leads that never convert? Or maybe you're pouring resources into brand awareness with no clear path to sales? 

Many marketers get stuck in the "demand generation vs. lead generation" debate by treating them like rivals. 

But here's the deal: they're not competitors or something that can not work in tandem. 

Successful marketing is a journey rather than a destination, and depending on your marketing goals, you may require both. 

With demand generation, you make an initial impression that sparks interest and builds trust. 

Lead generation is where things get serious. It nurtures that spark into a lasting relationship with your brand. 

SEMrush says that attracting quality leads is the content marketers biggest challenge. 84% of customers start the customer journey after realizing the need for a solution created by demand generation. 

This article explains what is demand generation and lead generation, the differences between them, and how the two work together. 

What is demand generation vs lead generation?

Demand generation is the process of creating interest and awareness in a company's products or services through marketing efforts. 

Here, you don't directly push a sale but rather offer valuable content for free, like informative blog posts, insightful webinars, or industry reports. 

The content establishes you as a thought leader and attracts potential customers who are already facing challenges you can solve. 

Popular demand generation techniques include social media marketing (such as engaging posts and industry discussions), content marketing (creating blog posts, infographics, or ebooks), and participating in industry events or podcasts. 

Social media management platforms, content creation software, and webinar hosting services are tools that can help you with demand generation.

Lead generation, on the other hand, means identifying and attracting potential customers, known as leads, and capturing their contact information. 

Here, you use targeted tactics to capture contact information from those interested prospects. 

Effective lead gen hinges on ensuring your demand gen efforts have already warmed them up, so they're happy to provide their details for more in-depth content. 

Lead capture forms, landing pages, and marketing automation platforms are all helpful lead generation tools. 

While demand generation vs. lead generation are closely related, there are several differences between the two.

Goals

The biggest difference between demand generation and lead generation is their goals and objectives. 

Demand generation aims for the big picture, which builds brand recognition and establishes your company as a leader in its space. 

These goals are more long-term and focus on creating a positive buzz around your brand. 

Here are some examples:

• Increase brand awareness to get more people familiar with your company name and what it does.
• Drive people to your website where they can learn more about your offerings and generate traffic.
• Establish thought leadership by positioning your company as an expert in its field, building trust and credibility.
• Boost social media engagement as people interact with your content on social media platforms.

Lead generation goals are more specific and action-oriented. They focus on capturing qualified leads who are actively interested in your product or service and moving them closer to a sale. 

These are your short-term wins, such as: 

• Collecting contact information from potential customers who have shown interest, also known as capturing leads.
• Nurturing your leads by offering relevant information and content to keep them engaged and move them further down the sales funnel.
• Attracting qualified leads who are a good fit for your product or service.
• Converting more leads into paying customers.

Target audience 

Another major difference between demand generation vs. lead generation is the target audience. 

Demand gen targets anyone who might have a general interest in the problems you solve or the industry you're in. This could include people who haven't even heard of your company. 

Your target audience in lead generation is much more focused. These are the people who have already shown some interest in your brand or something related to your product or service. 

They might have visited your website, downloaded a white paper, or engaged with you on social media. 

Essentially, they've given you a hint they might be a good fit for what you offer. 

Content and channels 

The content and channels of demand generation vs. lead generation differ a lot as well. 

Demand generation content focuses on broad appeal and education. It covers blog posts on industry trends, informative ebooks, or webinars on common challenges your target audience faces. 

The goal is to establish your company as a thought leader and a valuable resource and spark curiosity and brand awareness. 

You might use channels like social media, search engine optimization (SEO) to get your content ranking high in search results, or industry publications to reach a wider audience.

Lead generation content is more targeted and persuasive. Here, you're speaking directly to people who have already shown some interest. 

The content media include free trials, demos of your product, gated content (like ebooks or white papers where people exchange their contact information for access), or email marketing campaigns with personalized offers. 

The channels and tools you use for lead generation will also be more specific.  

Paid advertising on social media platforms or search engines can help you target users who fit your ideal customer profile. 

Landing pages with clear calls to action (CTAs) are crucial to capture lead information. 

Metrics and measurement 

Since demand generation vs. lead generation have different objectives, you can't measure them both by the same metrics.

The demand generation process measures the overall awareness and interest you're generating for your brand. 

A bigger number doesn't necessarily mean high conversion but it's a good starting point. Some demand gen metrics include: 

• Website traffic: How many people are visiting your website?
• Social media engagement: Likes, shares, and comments on your social media content.
• Brand mentions: How often is your company name being mentioned online?
• Leads generated: While not the main focus, some demand generation efforts might still capture leads who show initial interest.

In contrast, lead generation metrics go beyond just awareness. They focus on how well you're converting that interest into qualified leads who are ready to move further down the sales funnel. 

Here are some key lead generation metrics:

• Lead capture rate: The percentage of visitors who convert into leads by providing their contact information.
• Cost per lead (CPL): How much does it cost you to acquire a new lead? 
• Marketing qualified leads (MQLs): Leads who have shown a stronger interest and are a good fit for your product or service.
• Sales qualified leads (SQLs): Leads who are ready to be contacted by the sales team.

The perfect mix of demand generation and lead generation

The marketing shift today from focusing solely on lead generation to a more holistic approach that includes demand creation has become crucial for maximizing success. 

This shift recognizes that buyers now spend more time evaluating purchases and often make decisions through less easily measured channels, like dark social.

Without a strong demand generation strategy, lead generation can be costly and ineffective. 

Trying to convert leads before they're fully aware of your solution leads to low conversion rates, even with targeted ads on platforms like Facebook or LinkedIn.

Similarly, demand generation alone isn't enough. You need lead generation to capture those interested individuals and guide them through the sales funnel.

In short, to maximize your marketing efforts, you need both demand generation and lead generation working in tandem. 

This means aligning your content strategies and distribution channels to cater to different stages of the buyer's journey. 

For example, demand generation might focus on low-intent lead sources like podcasts or community events, while lead generation targets more direct channels like email or social media.

Here's what happens when demand gen vs. lead gen aren't aligned:

• Unhappy customers: Pushing sales pitches on uninterested leads, leads to frustration on both sides.
• High customer acquisition cost: Chasing unqualified leads is expensive and inefficient.
• Misaligned teams: Marketing and sales have conflicting goals (marketing wants brand awareness, and sales want conversions).
• Unproductive teams: Both marketing and sales are wasting time on tactics that don't deliver results.

You can use a lead scoring system to analyze your efforts.

A lead scoring system helps determine which leads from your demand gen efforts are ready for nurturing with more targeted content (for example, sending a personalized email with a case study to a lead who downloaded a white paper). 

Lead scoring ensures your sales team isn't wasting time chasing unqualified leads.

Generate leads with Formaloo!

Demand generation vs. lead generation are two sides of the same coin. By working together, they create a smooth customer journey, where you build trust, capture qualified leads, and convert them into happy customers. 

But how do you put this duo into action? Formaloo can help!

Formaloo is an all-in-one online forms platform that empowers you to create high-converting lead capture forms. 

You can design engaging, user-friendly forms that seamlessly integrate with your website and marketing tools. 

‍Start your free trial at Formaloo today.