Advertising
What is Cost Per Lead?
Also called: CPL
Cost per lead is your ad spend divided by the number of leads it brought in. It tells you what a new inquiry really costs your business.
Cost per lead, or CPL, is the total you spent on a campaign divided by the number of leads it produced. A lead is a person who raises their hand, such as by calling, filling out a form or booking a visit.
It is more useful than clicks or impressions because it measures something your business can act on. If you know a lead costs a certain amount and a certain share of leads become customers, you can work out what a customer costs and whether the ads make sense.
CPL depends on the quality of traffic and the quality of your page. Cheaper leads are not always better, since low-quality inquiries waste your team's time. We track cost per lead alongside lead quality so you invest in the campaigns that bring buyers.
Example
You spend an even amount on ads in a month, receive twenty inquiries, and divide the spend by twenty to get your cost per lead.
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