Get to Know More in Cost Per Lead (CPL) Advertising
Get to Know More in Cost Per Lead (CPL) Advertising – Technological developments are happening now that makes a lot of things easy. One of them is in the field of information technology. The development of this technology has certainly made a lot of companies create websites on website creation services and start thinking again in looking for their marketing strategies. Online advertising in digital marketing is now starting to be in great demand.
Online advertising is now in great demand with so many internet users today, indeed in the past most of them used conventional advertising strategies, but easily accessing the internet in 2017 alone, there were 15% allocation through social media and 20% allocation of advertising spending through social media and even it is estimated that in 2020 there will be an increase of 89%.
However, for those of you who are still laypersons may still be confused by various terms of online advertising costs such as CPC, CPM, CPL and various other terms provided by Google advertising services in various other places. One that is currently in demand is CPL or Cost Per Lead. Then what is Cost Per Lead ?.
Definition of Cost Per Lead
Cost Per Lead (CPL) is a form of performance-based digital advertising costs. Compared to the Cost Per Mile (CPM) and Cost Per Click (CPC) payment methods that require you to pay for ads based on people who see and click. Using CPL, you are required to pay for advertisements if there are consumers who are interested in your offer and they are willing to enter and register. Often referred to as lead generation. CPL does not see how many clicked on the ad and saw the ad. However, the money you spend on advertising will give you guaranteed results. Typically, CPL is used for businesses that sell high quality and high value products or offer subscription services.
Reasons Why You Should Do Business Using CPL
Typically, businesses that run programs to get a lot of customers, are conducting gift programs or are building email lists using the CPL advertising pricing model.
Most who use CPL advertising are businesses that are connected with consumers who have high enthusiasm for the product, brand or have a problem. Usually consumers also have the potential to make repeat purchases, so of course the value is high. These consumers will also usually recommend your product that uses CPL advertising to others who have similar interests.
Your company certainly has complete control over your brand or product in all ongoing marketing. This is why CPL advertisements are often used as a choice for branding. This is a preventative measure if there are other channels where there are entities that misunderstand in interpreting messages issued by your company.
By using CPL, you will get consumers who are not just looking, but also have an interest in registering and a lead that is able to meet the requirements set by the company. Clearly, they have needs, desires and will show interest in what you have to offer, so usually, consumers will develop into regular customers because CPL is converting consumers.
How CPL Works
As for how it works itself, when someone clicks on an ad, they will immediately be directed to your website. After that, they will be directed to register or participate by registering marketing programs, be it discounts, mailing lists, coupons, limited time sales, and various marketing programs that you are running. After they agree to participate and register, you already get leads. Where you publish the ad will also get compensation according to the agreement that has been agreed before.
Benefits of CPL for Digital Marketing
1. Save Cost
Compared to using conventional advertising, as previously explained, CPL certainly has more benefits. You can save money compared to conventional advertising. Advertising in the conventional way has various additional costs such as taxes and various other things. In addition, CPL uses a digital platform so that it will certainly save time and is not as complicated as conventional methods.
2. Influencing Prospective Consumers
Digital Marketing CPL method can increase consumer awareness of the brand that you produce. It has been said before, CPL makes consumers have to register or register by signing up if they have an interest in the products contained on the website, such as advertisements for Android Application Development Services. Here you can see the demographics of potential customers. When registering consumers usually have to fill in age, gender and various other things that can increase sales of your product in the future.
How to Calculate Cost Per Lead
Then, how to calculate CPL ?. After you know clearly what is Cost Per Lead (CPL) and its various benefits, for those of you who intend to increase marketing with CPL then of course you have to know how to calculate it. Calculating the amount of CPL is called the CPL metric and the formula is not difficult. How to calculate it is the Total Cost of the Ad divided by the Number of Leads obtained. That’s where you will get the CPL value. Even now you can install Tracking Conversion on the website to make calculations easier.
For example, if you have a capital of Rp. 5 million to spend it on the digital marketing budget per month. Then you get 10 thousand views and 500 clicks from digital marketing through adwords campaigns, then there are 500 people who visit your website and there are 50 people who fill out your brand or product survey form, then the CPL calculation method is:
IDR 5 Million (Total Advertising Costs): 50 (Number of Leads you Get) = 100,000. So it’s clear the CPL amount is around Rp. 100,000 per lead.
Calculation of Cost Per Lead (CPL) above is of course very easy to do for strategies in your digital marketing and online business. But despite the many conveniences and benefits, of course it will be very useless if your website has inadequate and the access is not good. Therefore, if you have the intention to increase the marketing of your product or brand.
In essence, be it CPL, CPC, CPM or various other online advertising costs have their respective advantages and disadvantages. And in choosing this advertising fee, of course, it must be adjusted to the brand, product or service that you offer. Do not let you choose CPL and even loss because of your wrong strategy. For this reason, think carefully about which online advertising costs are good for increasing your marketing.