Leads or Revenue? The Right Marketing Strategy by Business Model

February 24, 2026 • 17 min read •Nicolas Fabjan

More leads don't automatically mean more revenue. Many companies optimise for the wrong goals - and waste budget and time in the process. The real lever lies in aligning your marketing strategy with your business model.

For entrepreneurs this is a central question: do you focus on quick transactions or long-term customer relationships? The answer decides whether your activities are profitable or whether you invest in inefficient campaigns and waste your budget.

The consequence: without clear priorities, you risk misinterpreting data, feeding algorithms with misleading signals and burdening your sales processes.

In what follows, I'll show you why this decision is no trifle - and how to set the points correctly.

Why wrong marketing goals waste your budget

An unsuitable marketing goal can not only burden your budget but literally squander it. The cause lies in the way modern ad systems work: algorithms like Google's optimise exactly on the signals you give them. If a company with a long sales cycle (e.g. 8 months) optimises for short-term revenue, outdated data, inefficient bids and unnecessarily high costs arise. This inefficiency is amplified when the relevant quality criteria are disregarded.

A common problem is one-sided alignment to Cost-per-Lead (CPL). This approach only measures the first contact but delivers hardly any information about the actual quality of the leads. The result: sales spends too much time on unqualified contacts while potentially valuable prospects are overlooked.

It becomes particularly dangerous when revenue and profit are equated. Alexander Mathiesen, COO of squadt, puts it succinctly:

Revenue is not profit. You can generate high revenue with expensive campaigns that are unprofitable due to low margins or high costs.

Anyone who optimises exclusively on ROAS (Return on Ad Spend) instead of POAS (Profit on Ad Spend) risks investing budget in products with high sales figures but low margins. The result is net losses.

Internal goal conflicts exacerbate the situation further: when the marketing team is judged solely by the quantity of generated leads, quality and actual deal value are often left behind. That burdens not only efficiency but also the budget.

How to choose: leads or revenue for your business model

The decision between leads and revenue depends on three central factors: the length of your sales cycle, the volume of your deals and the value of a customer relationship. These elements determine what data Google can use for optimisation - and whether your campaigns can learn effectively at all. In what follows we show how these factors influence your strategy.

The 14-day horizon as decision threshold: If the period between click and purchase is more than 14 days, you're working with outdated data. Eoin Deveney, founder of Lead to Sale Marketing, puts it concisely:

The recommendation is not to optimize toward anything that takes place after 14 days.

For longer sales cycles - say three months or more - you often have no choice: you have to optimise for qualified leads, otherwise the algorithm uses unusable data.

The volume problem: Google Smart Bidding needs at least 15 to 30 conversions per month to work. For stable results, experts even recommend 50 or more. If you as a B2B service provider only achieve five deals per month, the necessary data is simply missing. In such cases, optimising on earlier conversion points - like qualified leads or appointment bookings - is not only sensible but essential to deliver enough signals to the system.

Relationship value vs. transaction value: Business models differ fundamentally in their logic. While online shops depend on fast volume, consulting firms rely on long-term customer relationships. An example: an online shop with a conversion rate of 2.86% needs speed and volume. A consulting firm, on the other hand, with a significantly lower conversion rate of 0.47% but a Customer Lifetime Value of €18,000, must rely on quality and sustainable relationships.

Business model comparison: which goal fits your company?

The following table shows how structural features of your business model influence your optimisation strategy:

The decision rule is clear: If your customers buy within 14 days and you achieve at least 50 transactions per month, optimise for revenue. In all other cases you should focus on the earliest possible quality indicator in your funnel. Then evaluate these leads using historical close rates and average deal values.

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Google Ads for lead generation

If sales cycles last longer than 14 days or you close fewer than 50 deals per month, you should focus on qualified leads. For that, however, Google needs current and meaningful data. A B2B service provider with only five orders per month doesn't deliver enough signals to the algorithm. The solution is to prioritise earlier conversion points like qualified enquiries, appointment bookings or demo requests and evaluate these using historical close rates.

The central question is: "Which funnel step delivers Google enough data without compromising lead quality?" A "Qualified Lead" should be defined as the conversion goal, for example an enquiry with budget information or a booked initial consultation. What matters is that these intermediate steps take place within 14 days after the click so the system can learn efficiently. In what follows, we explain how to optimally combine keywords, lead forms and Conversion Tracking.

Align keywords to user intent

A precise keyword strategy is decisive for hitting the intent of potential customers. Eoin Deveney, founder of Lead to Sale Marketing, emphasises:

Broad Match... should be seen as the go-to match type for performance advertisers. When paired with Smart Bidding, it makes you eligible for many more queries while only entering into auctions that are likely to convert.

Use Broad Match for solution-oriented keywords, such as "Business consulting digitisation", but strictly avoid this approach on brand campaigns. Negative keywords are essential to consistently exclude irrelevant searches. Those who combine Broad Match with Smart Bidding achieve on average 25% more conversions at the same CPA. Regular analyses of the "Search terms" report help to mark unsuitable queries as negative keywords. Once suitable searches have been identified, optimised lead forms deliver qualified contacts.

Use lead forms and Cost-per-Lead bids

Auto-fillable lead forms significantly lower the hurdle for users - on Android devices, for example, contact details are automatically taken over. But beware: too easy a process can lower the quality of the leads. Therefore use the "More Qualified Leads" setting in the lead form assets and ask targeted questions, such as about budget, timeframe or company size.

For the bidding strategy, Target CPA (tCPA) is suitable for uniform lead values or** Target ROAS (tROAS)** for varying lead qualities. The lead value should be calculated based on historical data: if, for example, 25% of your qualified leads lead to an average deal value of €8,000, that gives a lead value of €2,000. With this valuation, Smart Bidding can prioritise high-quality prospects - provided there are 15 to 50 conversions per month.

Track and filter lead quality

The main problem with lead campaigns is not quantity but quality. A lead only has value when it actually leads to a deal. By using** Enhanced Conversions for Leads**, first-party data like email addresses and phone numbers can be used to precisely capture offline conversions. Those using Enhanced Conversions achieve on average** 10% more measured conversions** than with standard offline imports.

Define clear quality criteria and filter leads already in the system. Tools like reCAPTCHA or Double Opt-in help avoid bot traffic. A direct integration of Google Ads with your CRM system (e.g. HubSpot or Salesforce) via platforms like Zapier ensures that leads are immediately passed to sales and conversion data flows back to Google. The decisive question remains:

Does this optimisation improve the share of leads that become revenue?

Through this consistent logic you don't optimise for mere volume but for real return. Nordsteg relies here on predictable results through thoughtful strategy and clear processes - that distinguishes sustainable growth from costly experiments.

Google Ads for direct revenue

If your business model is geared to short sales cycles and high sales volume - such as in e-commerce or with digital products - you should align Google Ads directly to revenue. After just 2-4 weeks, revenue campaigns deliver enough conversion data for the algorithm to learn efficiently. For comparison: e-commerce websites achieve on average a conversion rate of 2.86% with paid traffic - that's six times higher than with lead generation.

The central question, however, is not "How much revenue do I generate?" but "How much profit is left after deducting advertising costs and cost of goods?" Many entrepreneurs focus on ROAS (Return on Ad Spend) without considering that high revenue at low margins can eat into profit. Alexander Mathiesen, COO of squadt, captures the issue:

A revenue-only optimization (classic ROAS) often pushes budget toward high-revenue products - not necessarily the most profitable ones. The result: you may burn money on sales that yield little profit, while high-margin offerings remain underfunded.

The solution lies in segmenting the product catalogue by contribution margin. Define different ROAS goals for three categories: "Hero products" (high margin/high demand),** "Traffic drivers"** (low margin/high volume) and** "Speciality products"** (high margin/low volume). That way you specifically steer profitability and not just revenue.

Performance Max and Return-on-Ad-Spend bidding

Performance Max (PMax) is a campaign type that combines all Google inventories - Search, YouTube, Display, Discover, Gmail and Maps. It automatically optimises bids and creative combinations to maximise conversion value. Advertisers report, after switching to PMax, an average of 27% more conversion value at the same ROAS. But beware: PMax amplifies your data strategy - if you only feed the system revenue data, it also only optimises on revenue, without considering profitability.

A precise bid target is decisive. With the Target ROAS (tROAS) bidding strategy, you set how many euros of revenue should be achieved per euro of advertising budget invested. Those who switch from Target CPA to Target ROAS achieve on average 14% more conversion value. Start with a tROAS goal close to or slightly below your historical level to generate enough traffic for the learning phase. Once the campaign runs stably (at least 15 conversions in the last 30 days), adjust the goal step by step: lower tROAS by a maximum of 20% every two weeks to achieve more volume, or raise it to increase profitability. That way you avoid resetting the learning phase.

An additional lever is the "New Customer Value Mode", which makes it possible to address new customers more aggressively while reaching existing customers efficiently. This can improve ROAS by 9% and lower acquisition costs by 7%. For PMax campaigns the following applies: provide at least 20 text ads, seven images and one video - campaigns with video assets achieve 12% more conversions. Those who bring the "Ad Strength" to "Excellent" can achieve a further 6% more conversions.

A practical example: in 2024, a leading online beauty retailer, together with an experienced partner, optimised its PMax campaigns for sustainable profitability. Through targeted steering of the tROAS goals to high-margin products, the company achieved 39% more daily revenue in the German market and a revenue increase of 42% across several other network beauty shops.

Dynamic product ads and purchase-ready keywords

Shopping campaigns account for 76% of e-commerce ad spend at Google. Through visual elements like product images and prices, they pre-filter purchase-ready users. The result: 30-40% better cost per acquisition compared to generic search campaigns.

Success depends on the structure of your product feed. In the Merchant Center, use Custom Labels to segment products by contribution margin, stock level or competitiveness. That way you can, for example, define a "High margin" label and set a higher tROAS goal for these products.

With search campaigns too, alignment to buying intent is decisive. Users searching "Buy Nike Air Max 270" are closer to a buying decision than those with generic search terms. A list of negative keywords helps consistently exclude irrelevant traffic.

Another approach is Single Keyword Ad Groups (SKAGs). Each ad group contains only one keyword that points directly to a specific product page. That reduces bounce rates and eliminates unnecessary navigation hurdles. In addition,** Dynamic Search Ads (DSA)** can be used, which automatically create ads based on your website content. That way you identify profitable long-tail searches often overlooked in manual campaigns.

Nordsteg's approach: strategy before execution

Up to 60% of marketing budgets are wasted because companies invest in campaigns without a clear strategy. That leads to activities with broad keywords and imprecise messages, which indeed create visibility but offer hardly any relevance. Samet Sönmez from Marketingblatt puts it succinctly:

Visibility is easy. Relevance is where the real work begins.

Nordsteg starts here and follows a clear principle: strategy before execution. Before a single euro is put into Google Ads, SEO or performance funnels, the focus is on developing a** Marketing Masterplan** (€1,490) or a** Marketing Roadmap** (€6,990). These strategic tools create the foundation to clarify whether your business model aims at lead generation or direct revenue, which conversion goals must be tracked and how marketing and sales processes mesh. Without this clarity, every campaign lacks the basis for reliable results - because without precise tracking, only speculation remains.

According to this approach, a masterplan is created first, then a roadmap is developed, and finally continuous management ensures predictable results.

Marketing Masterplan: clear priorities as the foundation

The Marketing Masterplan (€1,490) is the strategic foundation for companies needing quick orientation in their marketing activities. This step ensures that no resources flow into campaigns before fundamental questions are answered - about the audience, the conversion goals or the sales cycles.

Together we define your Buyer Persona, analyse your business model and derive four concrete action recommendations. These include decisions such as whether to rely on lead forms or direct sales, which conversion goals to prioritise and how campaigns must be structured. With long sales cycles of 6-12 months and multiple stakeholders (typical for B2B), the focus is on qualified leads and lead nurturing. In contrast, with short decision paths and high volume (e.g. in e-commerce), optimisation is directly on revenue and contribution margin. This clarity ensures your campaigns are aligned with the right goal from the start.

Marketing Roadmap: comprehensive planning for long-term success

The Marketing Roadmap (€6,990) goes beyond the basics. In a two-day workshop with up to three people from your company, a detailed plan for your entire marketing is created. This includes the analysis of your audiences, the definition of your positioning, the budget plan and a clear prioritisation and timeline - documented in Notion, so all activities are traceable at any time.

The roadmap ensures that marketing and sales act as one. Companies with such alignment achieve up to 20% higher revenue growth. It lays down how leads are qualified, which criteria a "Sales-Ready Lead" must meet and how the entire opportunity lifecycle - from first contact to post-sale - is designed. Especially in B2B, where 73% of revenue is generated with existing customers, the integration of post-sale activities is decisive.

Ongoing management: execution and optimisation

Strategy alone isn't enough - it must be consistently executed and continuously optimised. Nordsteg therefore offers ongoing management for Google Ads (from €350/month), SEO and performance funnels. We follow a clear optimisation rhythm: weekly search term audits to remove irrelevant keywords as well as adjustments of ad copy and bids every 14-30 days. That way the efficiency of your campaigns is preserved long term - because unmanaged campaigns quickly lose impact.

A practical example: A1 Telekom Austria AG was able to increase total revenue by 3.7% in Q1/2025 and win 8.4% more mobile customers - thanks to strategic transformation and continuous optimisation. That shows predictable results can only be achieved through a combination of strategy, consistent execution and continuous adjustment - not through short-term, isolated campaigns without a solid basis.

Conclusion: align your marketing to your business goals

The choice between lead generation and direct revenue depends directly on your business model. E-commerce companies with short sales cycles and high transaction volume focus on contribution margin and ROAS, while B2B service providers - characterised by long decision processes and complex products - must rely on** qualified leads and a high sales-qualified rate**. Anyone ignoring this fundamental logic risks wasting budget - even with technically flawless campaigns. Strategic alignment is the key to avoiding mistakes and inefficient activities.

A typical mistake: many companies start with Google Ads without clear conversion goals or tight integration of marketing and sales. 67% of B2B marketers state that lead quality - not quantity - is their biggest challenge. Without a clear strategy, marketing remains a gamble.

Nordsteg starts exactly here: with a clear strategic framework - whether the Marketing Masterplan (€1,490) or the** Marketing Roadmap** (€6,990) - we create the foundation for focused execution. We analyse whether your business model should be aligned to leads or revenue, define the relevant metrics and calculate budgets so they can be deployed profitably. Only then does operational execution follow, for example through Google Ads, SEO or performance funnels. The result: predictable and sustainable results based on a clear, business-model-oriented plan.

Adventure PPC puts it succinctly:

The real question isn't which strategy costs less - it's which strategy makes you more money.

Those who consistently align their marketing strategy to their own business goals lay the foundation for long-term growth - not through short-term experiments but through a strategic approach that is thoughtful and actionable. A clear plan and targeted coaching form the foundation for sustainable success.

FAQs

How do I find the right conversion goal?

To get the greatest benefit from your Google Ads campaigns, you should first clearly define what has the highest priority for your business model. If qualified leads are decisive for you, align your campaign goals to "Qualified Leads". If your focus on the other hand is revenue or direct sales, choose** Purchases** or** Revenue** as the goal.

Avoid tracking irrelevant goals like page views, as these can dilute the AI's control. Your priority should always be on a primary conversion that directly influences your business success. That way you ensure your campaigns work efficiently and in a focused way.

Which lead quality criteria should I track?

To precisely evaluate the quality of your leads, you should consider several factors. These include the relevance of the leads to your offer, their buying intent, the company size or industry (in B2B) as well as the frequency of interactions with your content.

Important KPIs that can help include:

Conversion rate: How many leads actually become customers?
Sales cycle: How long does it take for a lead to lead to a deal?
Generated revenue: How much revenue do the won customers bring?

In addition, qualitative aspects play a decisive role. Criteria like the decision authority of the leads and their fit to the customer profile deliver valuable pointers to sharpen your audience targeting specifically. A clear focus on these points boosts the efficiency of your sales process.

How do I optimise for profit instead of just ROAS?

To put profit instead of just ROAS in focus, you should define bidding strategies and conversion goals aligned with your actual business goals - such as qualified purchases or high-quality leads. The key lies in maximising profit instead of concentrating exclusively on revenue or ROAS. That way you create a foundation for long-term and sustainable success of your marketing activities.