What's the difference between demand generation and lead generation? If you don't know, you're not alone.
Here's what matters: demand generation creates market interest at the top of the funnel. Lead generation captures buyer information at the mid and bottom of the funnel. Think of demand gen as creating the want. Lead gen converts that want into contacts.
Demand generation and lead generation are both B2B marketing techniques that use similar language and tactics, and target similar buyers. However, they're distinct practices that aren't interchangeable.
As a B2B marketer, you're off to a great start if you can recognize the value of both and are ready to incorporate them into your campaigns. To see results, it's important to understand the distinctions between the two and how to use them together for maximum impact.
What is Demand Generation vs. Lead Generation?
Demand generation creates market awareness and interest at the top of the funnel. Lead generation captures buyer contact information at the mid and bottom of the funnel. Both are essential B2B marketing strategies that work together across different funnel stages to drive revenue.
What is Demand Generation?
Demand generation is about creating market awareness and interest before buyers are ready to purchase. It's the work that happens when your audience doesn't yet know they have a problem or that your solution exists.
Key characteristics of demand generation include:
Brand awareness: Educates the market on problems worth solving
Ungated content: Creates category demand through thought leadership without friction
Problem-focused: Emphasizes problem/solution fit rather than immediate conversion
Broad reach: Targets a wide audience to expand total addressable market
What is Lead Generation?
Lead generation is about capturing contact information from buyers showing purchase intent. It's deployed to capture essential prospect information, which is then used to qualify leads and serve them engaging, personalized experiences.
Lead generation nurtures leads with value-adding gated content. The goal is to move qualified prospects toward a sales conversation.
Key characteristics of lead generation include:
Gated content: Captures contact information through forms and premium resources
Qualification: Filters prospects based on fit and buying signals
Intent-based: Delivers targeted content to buyers showing clear purchase intent
Sales-ready: Focuses on conversion and handoff to sales teams
Content is a cornerstone in both marketing strategies. We'll talk about the different types of content you can use for both in a later section.
Demand Generation vs. Lead Generation: Key Differences
Here's how demand generation and lead generation compare across key dimensions:
Dimension | Demand Generation | Lead Generation |
|---|---|---|
Goal | Creates widespread awareness and educates the market | Converts interested prospects into sales-ready contacts |
Content strategy | Ungated, freely accessible content like blog posts, podcasts, and social media | Gated content like whitepapers, webinars, and product demos |
Funnel stage | Top of funnel where buyers are learning about their problems | Mid and bottom of funnel where buyers are evaluating solutions |
Timeline | Long-term investment in brand building and market education | Drives immediate results and near-term pipeline |
Metrics | Reach, engagement, and brand awareness indicators | Conversion rates, cost per lead, and pipeline contribution |
How Do Demand Generation and Lead Generation Work Together?
Lead generation is often considered a subset in a larger demand generation strategy. Demand generation attracts potential leads at various funnel stages to expand your audience, then lead generation converts the best of that audience into qualified leads. Neither strategy is more important than the other.
Here's how they connect in practice:
Audience building: Demand gen builds the audience that feeds your lead gen programs
Feedback loop: Lead gen data shows you which messages and topics resonate, informing your demand gen content
Warm-up effect: Demand gen warms up cold prospects, making lead gen conversion rates higher
Proof creation: Lead gen creates customer stories and proof points that fuel demand gen campaigns
Related Reading: How to Optimize Your B2B Marketing Funnel: 3 Friction-Fighting Tips
When Should You Focus on Demand Generation vs. Lead Generation?
The right mix depends on where you are and what you need to fix.
Prioritize demand generation when:
You're entering a new market or creating a new category where buyers don't know the problem exists
Your brand awareness is low and prospects don't recognize your company in their consideration set
Inbound volume is weak and your pipeline lacks top-of-funnel coverage
Sales cycles are long and you need to educate buyers over time before they're ready to engage
Prioritize lead generation when:
Your pipeline is empty and you need qualified leads now
You have strong brand awareness but weak conversion from interest to action
Your product fits an established category where buyers are actively searching for solutions
You need to prove ROI quickly with measurable pipeline contribution
Most B2B marketing teams need both running in parallel. Demand generation keeps the top of the funnel full. Lead generation converts that interest into revenue opportunity.
Metrics for Measuring Success in Demand Gen vs. Lead Gen
Track these KPIs based on your strategy focus and business priorities:
Demand generation KPIs:
Overall sales pipeline growth
Cost per acquisition (CPA)
Customer acquisition cost (CAC), per channel
Website traffic numbers
Social engagement rate
Content performance metrics
Lead generation KPIs:
Number of qualified leads
Lead value
Conversion rate
CAC
Click-through rate (CTR)
Average lead response time
Ratio of marketing qualified leads (MQLs) to sales qualified leads (SQLs)
Demand Gen and Lead Gen Campaigns in Action
How do demand and lead generation campaigns play out in practice?
Demand Gen Examples
Demand generation campaigns focus on brand awareness and positioning. Start by sharing content via easily accessible, free channels that are ungated.
Social Media
B2B buyers regularly use social media when researching purchase decisions. Social media posts offer a free way to share your content and engage with potential buyers.
Extend your social media marketing reach beyond your followers with relevant industry keywords that make it easier for interested parties to find you.
Free Educational Content
B2B buyers are continual learners researching solutions to real problems. Demonstrate your expertise and build trust by providing free educational content that addresses their challenges.
Email Marketing
Email marketing is a fast, simple, and cost-effective way to connect with a large audience across channels. The return on investment for email is an impressive $36 for every dollar spent.
Email newsletters may fall between demand gen and lead gen. They require some existing awareness, as an interested party has to sign up for your emails before they can receive them.
Shareable and highly informative emails are a great top-of-funnel resource for generating interest. Email marketing can also be a useful nurturing channel for lead generation.
Lead Gen Examples
Lead generation campaigns nurture leads with relevant content and experiences. Lead gen is most often "gated," meaning an information-collecting form stands between prospects and the resource they want to access.
Gated, High-Value Content
Content marketing is a core element of lead generation. When you visit a landing page and fill out a form before accessing content, that information helps the marketing team determine if you are a lead worth pursuing. Gated content keeps less-qualified leads out of the funnel.
Gated lead generation content includes whitepapers, eBooks, how-to guides, surveys, exclusive interviews, and original research.
Free Trials
Offering free trials can increase lead conversions or turn a prospect directly into a paying customer. The longer someone uses a trial, the higher the probability they'll continue using it after the trial period ends.
Highly Specific Webinars
General, ungated webinars are an option for demand gen, but have lower ROI. A focused, expert-driven webinar is something prospects will give their contact information to attend.
Key Takeaways on Demand Generation vs. Lead Generation
Both strategies are essential for B2B success. Demand generation creates the market. Lead generation captures the value.
Here's what to remember:
Complementary strategies: Demand gen and lead gen work together across the funnel, not against each other
Demand gen role: Builds long-term brand awareness and educates buyers on problems worth solving
Lead gen role: Converts interest into pipeline by capturing contact information from buyers showing intent
Balance matters: Your mix depends on market maturity, pipeline health, and business priorities
Data foundation: Success requires quality data about buyers, accounts, and buying signals to execute both strategies effectively
Nothing is more important to demand gen and lead gen than accurate, actionable data about potential customers. ZoomInfo provides the buyer intelligence and contact data that powers both strategies. Our platform encompasses 100 million company profiles, 500 million contact profiles, and 1 billion buying signals processed monthly.
Start your free trial and see how quality data fuels your funnel with highly qualified leads.