What is CPL?
CPL Means Cost Per Lead
What is it Cost Per Lead ( CPL)
The Cost Per Lead The cost of generating a new lead for your sales team as a result of your existing marketing campaigns,These potential customers saw your ad, clicked on it, and provided contact information to obtain additional information about your product.
The cost of a potential customer results from a calculation that I will explain with an example to make it clearer.
If the company carries out advertising campaigns in:
- Advertising through content writing.
- Advertising through social media.
- Sponsored advertising on famous advertising sites such as Google AdSense
The company then counts the number of customers who have come from these three campaigns To calculate the cost of each customer.
The advertising costs in the three campaigns are divided by the number of customers , The result is how much each client cost off company from these advertising campaigns.
CPL = Total Ad Spend / Total leads generated
For example, if the company decides to distribute advertising costs as follows:
- Advertising through content writing = $10000 / year
- Advertising through social media = $5000 / year
- Sponsored advertising on famous advertising sites = $8000 / year
Total cost = $23000
New leads ( customers ) = 1000
CPL = 23000 / 1000 = $23
A higher cost per lead may indicate a higher quality lead and a lower overall customer acquisition cost if you want quality , If your goal is quantity, you must strive to reduce CPL.
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