Calculate Cost Per Lead for Marketing Strategies
The development of information technology has made companies and brands start to rethink their marketing strategies. Previously, marketing was more focused on conventional approaches, now online advertising in digital marketing is increasingly in demand. In 2017 alone, for example there were around 20% of ad spending allocations through digital platforms and 15% allocated through social media. Even the number of online advertising as reported by Katadata is estimated to increase 89% in the next 2022.
For those of you who have already explored and entered into the world of marketing are already familiar with advertising costs. Especially in digital marketing, there are many terms that need to be known for those who are just working on it. One of them is Cost Per Lead (CPL), in essence this CPL is the cost of online advertising that must be spent by a brand and how to calculate the future prospects of a company or brand through digital marketing strategies.
CPL has become the most important part in digital marketing and online advertising. CPL in other words can be called the calculation of advertising payments based on the number of visitors to a website and they do Sign-up / Registration. In signing up the website visitors usually include their name, e-mail and other identities. Then, what are the benefits and how to calculate this CPL? His comments are in the points below.
The benefits for digital marketing
When compared to conventional advertising using CPL clearly has many more benefits. First, you can save in terms of costs considering that if you advertise in the conventional way, of course it has additional costs such as taxes and so on. In addition, you can also save time because using a digital platform will be faster and not as complicated as conventional.
Second, in terms of awareness of a brand, CPL digital marketing is able to influence potential customers. If they are interested in the brand or product offered through the website, they will register or sign up. From this sign-up, the demographics of potential potential customers can be determined later. For example in terms of age, gender, and so on so that it can increase sales in the future.
How to calculate it
Now that you know what Cost Per Lead (CPL) is and its benefits in the world of digital marketing, now is the time for you to know how to calculate it. In calculating the amount, it is known as CPL metric. The formula is actually not too complicated, you can calculate it with the formula that is the total cost of advertising: Number of leads obtained = CPL. To make it easier, you can also install tracking conversions on your website.
An example is when you spend an advertising budget for digital marketing of IDR 5 million per month. From digital marketing through this adwords campaign for example you get 10 thousand views and 500 clicks. While in terms of visitors, there are about 500 who visit your website and there are about 50 people filling out the brand survey form. So from this example we can calculate the CPL, which is:
$ 5 million (total advertising costs): 50 (number of leads earned) = 100,000. So, for the amount of CPL there is around $ 100 thousand.
How, is it not easy enough to calculate Cost Per Lead (CPL) for online businesses and strategies in your digital marketing? Even so, in digital marketing also needs to be supported with adequate website access. For that you can use the best hosting service provider to support your business. Hope it is useful for you!