Demand gen and lead gen and when to use them

Marketers often use the terms “demand gen” and “lead gen” interchangeably, but they are actually two distinct concepts, with some overlap. I’d like to clear up what they are and how they differ.

Demand generation is focused on building awareness of the problem a product solves and the solution it offers, and guiding prospective buyers through a journey. Demand gen ends up relying almost entirely on content generation in a variety of mediums.

Lead generation, as the name says, is focused on generating leads (sales ready and not) and qualifying them. It includes a variety of methods, including inbound marketing (using content and SEO), advertising (PPC), content syndication, purchasing leads, outbound email and telephone marketing (SDRs), etc. 

For purposes of this distinction, lead gen is concerned with the initial conversion activity – getting someone into the funnel, regardless of qualification. Once they are in, demand gen efforts nurture them along to increasingly qualified stages (by raising their awareness of the problem and solution), and eventually they are sales-ready. 

You could have some lead gen overlap here, as you may want to proactively qualify them during the nurture process. Although nurturing is a demand gen activity, qualifying them is lead gen. For practical purposes, the distinction is meaningless here.

One way to think about the distinction that does make a difference is to consider the content used for each. The goal of lead gen content is to get someone to give up their contact information (convert) and download it. The focus is on the content piece itself – it’s what the prospect wants. It needs to be attractive and interesting, but doesn’t need to lead back to the company. All we know is that we’ve offered something of value in exchange for the opportunity to talk to you in the future.

Demand gen content, on the other hand, is all about spreading awareness of the problem the product solves and the solution. It must be focused on the solution, but it should be spread as far and wide as possible. Demand gen content is less likely to be gated – the goal is getting the word out, not getting leads.