Cost per lead, often abbreviated as CPL, is an
online advertising
Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...
pricing model, where the advertiser pays for an explicit sign-up from a
consumer
A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...
interested in the advertiser's offer. It is also commonly called ''online lead generation''.
Contrary to
cost per mille
Cost per mille (CPM), also called cost per thousand (CPT) (in Latin, French and Italian, ''mille'' means ''one thousand''), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of ...
(CPM) and
cost per click
Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked.
Pay-per-click is usuall ...
(CPC) pricing models, where advertisers are charged for impressions (a.k.a. "views") and clicks, respectively, in a CPL pricing model advertisers pay only for a qualified sign-up regardless of how many impressions or clicks their advertisement receives. CPL advertising enables advertisers to generate guaranteed
returns
Return may refer to:
In business, economics, and finance
* Return on investment (ROI), the financial gain after an expense.
* Rate of return, the financial term for the profit or loss derived from an investment
* Tax return, a blank document or t ...
on their online advertising money.
Difference between CPL and CPA advertising
In CPL campaigns, advertisers pay for an interested lead – i.e. the contact information of a person interested in the advertiser's product or service. CPL campaigns are suitable for brand marketers and direct response marketers looking to engage consumers at multiple
touchpoint
A touchpoint can be defined as any way consumers can interact with a business organization, whether it be person-to-person, through a website, an app or any form of communication (“Touchpoint Glossary”, n.d.). When consumers come in contact ...
s – by building a newsletter list, community site, reward program or member acquisition program.
In
Cost per action
Cost per action (CPA), also sometimes misconstrued in marketing environments as cost per acquisition, is an online advertising measurement and pricing model referring to a specified action, for example, a sale, click, or form submit (e.g., conta ...
campaigns (CPA), the advertiser typically pays for a completed sale involving a credit card transaction. CPA is all about 'now' – it focuses on driving consumers to buy at that exact moment. If a visitor to the website does not buy anything, there is no easy way to remarket to them.
There are other important differentiators:
* CPL campaigns are advertiser-centric. The advertiser remains in control of their brand, selecting trusted and contextually relevant publishers to run their offers. On the other hand, CPA and
affiliate marketing
Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of ...
campaigns are publisher-centric. Advertisers cede control over where their brand will appear, as publishers browse offers and pick which to run on their websites. Advertisers generally do not know where their offer is running.
* CPL campaigns are usually high volume and light-weight. In CPL campaigns, consumers submit only basic contact information. The transaction can be as simple as an email address. On the other hand, CPA campaigns are usually low volume and complex. Typically, consumer has to submit credit card and other detailed information.
CPL advertising is more appropriate for advertisers looking to deploy acquisition campaigns by re-marketing to end consumers through e-newsletters, community sites, reward programs,
loyalty programs
A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. Today, such programs cover most types of commerce, each having varying features an ...
and other engagement vehicles.
References
*''The B2B Refinery'' by J. David Green & Michael C. Saylor ()
*''Lead Generation for the Complex Sale'' by Brian J. Carroll ()
*''Marketing Management'' by Philip Kotler ()
*''Database Marketing'' by Edward Nash ()
*''Marketing for Dummies'' ({{ISBN, 0-7645-5600-2)
Pricing
Online advertising