What is Cost Per Lead (CPL)? Where is it used?

Cost Per Lead (CPL) is an abbreviation for Cost Per Customer, and in advertising, this refers to the cost per lead. When used as a pricing model in online marketing, advertisers pay for the potential sale, not for the actual sale or click.

It is a method where advertisers pay the publisher of the advertisement for each of the referrals to the e-commerce site where the advertisement is advertised. As it is known in the world and in our country, internet usage continues to increase day by day. We can say that transactions conducted over the internet have also reached significant levels.

Among the transactions that users make on the internet, advertisements are the most striking and most used. CPL is the name given to the payment made after the ads are published. With the development and increase in internet advertising, different advertising methods are emerging. You can see that developments are continuing in terms of payment methods for advertisements. CPL refers to a payment method used for e-commerce sites and the advertising side. In this article, how is Cost Per Lead (CPL) calculated? We tried to answer the question and explained what this payment method is. Apart from the CPL, similar payment methods can be mentioned. You can also come across payment methods similar to these payment methods. You can find information about them on our website.

How is Cost Per Lead (CPL) Calculated?

You can easily apply the following formula to calculate the cost per lead.

Total Ad Spend for All Leads / Total Number of Leads = CPL in TL

Example:

The cost of generating 100 potential leads is 2,500 TL.
2,500 TL / 100 = 25 TL = CPL
Therefore, in this example, the cost per lead is 25 TL.

What is Demand?

Cost per lead (CPL) To fully explain the term, it’s necessary to define the term “Lead” or “talep.” In marketing, it refers to the contact details of a prospect or, in a few cases, the demographic details of a person interested in the advertiser’s service or product. Thus, the customer can be thought of as a customer, user or potential buyer, where the customer “leads” the product offered. A lead can be someone who subscribes to a newsletter or fills out a contact form.

Functionality

Cost Per Lead (CPL) campaigns are a widely used model for Google Ads and Facebook Ads. With compelling advertising and video content, it will be easier for you to reach your potential customers and direct them to your website.

If you want to avoid using CPL campaigns with Facebook Ads, you can ask the customer to fill out a form before leaving the page and keep the lead or audience on that page. This way, by registering them in your database through Facebook, you can easily access this data from your ad panel.

This advertising campaign is a very effective channel in digital marketing processes. Businesses that want to get potential customers can easily choose. Complex and time-consuming forms can negatively affect conversions, so instead just ads. email etc. It will be sufficient and convenient to get contact information.

Cost Per Lead Application Areas

It would not be reasonable to expect direct sales and purchases from your potential leads from the moment you advertise. Other models such as CPO or CPA can be used as an alternative to the per customer pricing model. The focus of the CPL method is therefore on obtaining customer data. As a result of the evaluations, this method can be used for target-oriented acquisitions.

Cost Per Lead (CPL) methods are suitable for email marketing as well as for computer software downloads. Contact forms integrated into other websites can be paid by this method. If leads are combined with applicable tracking methods, CPL can also be used as part of affiliate marketing.

Based on a person’s self-assessment, a company’s marketing team can determine advertising expenditure using the cost-per-ad method, for example, to get customers to fill out a contact form.

Benefits of Online Marketing

Cost per customer has the advantage that advertising campaigns are more scalable. This way, the company only pays for the successful purchase of leads and does not have to pay for other advertising media. Another advantage of the method is to increase the number of customers that can come from clicks and get more sales on the field.