Get to know more about what is cost per lead and how it works

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Get to know more about what is cost per lead and how it works

Get to know more about what is cost per lead and how it works 1

Cost per lead (CPL) is a form of performance-based digital advertising. You only need to pay for advertising when a customer is interested in your offer and they are willing to register. This is also often referred to as lead generation. CPL advertising is typically used by businesses that offer subscription services or that sell high-value products.

Unlike the cost per mille (CPM) and cost per click (CPC) advertising payment methods which require you to pay for impressions (views) and clicks, in CPL ads, you only need to pay when a consumer registers himself, no matter what the number of impressions. or click it. With CPL advertising, the money you have spent will give you more guaranteed results.

How and Why Businesses Use CPL

  • The CPL advertising pricing model is generally used by businesses that are building email lists, running customer acquisition programs, or running rewards programs.
  • Some businesses rely on CPL advertising to connect with consumers who are excited about a brand, product, or are experiencing a problem. These consumers are usually of high value because of the potential for making repeat purchases. They are also more likely to be more active in recommending your products to other people with similar interests.
  • CPL advertising is also more often the choice in branding, because your company has full control over your brand throughout the marketing process. This is done as a precaution if there are other entities on other channels that are misinterpreting your company’s message.
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Consumers show interest by registering, and not just by looking. They are qualified leads, or in other words, they are people who have shown an interest, need, or desire for what you have to offer. CPLs are more likely to generate conversions, and can even develop into repeat customers.

How the CPL Works

When your audience clicks on your ad, they’ll be sent to your landing page. There, the audience is directed to participate or register in the marketing program that you are running, be it a discount, a mailing list with the lure of a coupon, a sale that is available for a limited time, and so on. If the audience decides to sign up, this means that you have acquired a lead, and the publisher (where you placed the ad) will be compensated according to the cost per lead according to the previous agreement.

How to Calculate CPL

The CPL is the first formula in a series of marketing metrics that can help you gauge your marketing effectiveness and budget.

You can calculate your CPL by dividing the total marketing costs incurred by the leads generated. The total marketing costs include advertising expenses, expenses for third parties, or other related expenses.

Case study

You spend IDR 5 million in advertising budget for inbound marketing in one month. From here you get 10 thousand page views and 500 clicks from Adwords. Meanwhile, from the number of visitors, there are about 500 people who visit your website, and 50 people who subscribe to the newsletter. From this example, the CPL can be calculated as follows:

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$ 5 million (total advertising cost): 50 (number of leads) = $ 100,000. Thus, the CPL is $ 100,000.

That is the discussion about cost per lead and how it works. So that your business grows, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products, so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and provides you with multiple options for marketing your product.