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May 30, 2022

What is Cost Per Lead ( CPL ) & How to Calculate it?

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Advertising and marketing campaigns are important for attracting customers to your business, but how can you know whether they’re working Right or not? If you’re attracting new customers but spending more on advertising than they’re worth, your company may face an unstable future.

Fortunately, determining how cost-effective your campaigns are is simple. CPL (cost per lead) is a measurable metric that indicates whether your efforts and ad expense are paying off.

We’ll go over everything there is to know about CPL in this article, from what it is to how to lower it. You can design more effective marketing campaigns and get more leads for less money once you start measuring CPL. Also Read: CPA Marketing: How Can You Make Money With It?

cost per lead

What is Cost Per Lead (CPL)?

The cost per lead (CPL) is the expense of acquiring a new potential customer for your sales team as a result of a current marketing effort. These potential consumers — or leads — have seen an ad, clicked on it, and then provided some contact information in exchange for a white paper or additional information about your product.  

CPL shows marketing teams if they’re spending enough money on various methods of generating new leads, such as Google Ads or Facebook Ads. The marketing campaign will be less effective if the CPL is higher than other businesses in your industry. A lower CPL is, of course, preferred.

How to Calculate Cost Per Lead?

The process of calculating CPL is quite simple. Simply divide the amount of money spent on a campaign over a given time period by the number of leads generated during that time period.

CPL = Total Ad Spend/ Total leads generated

For example, if a Google Ads campaign cost $1,000 and generated 100 leads, the CPL for such a campaign would be $10.

Don’t forget to compute CPL data for each campaign platform separately. Calculating the CPL for your entire marketing campaign, including email, social media, and search engines, would be useless on its own. You wouldn’t know which platform’s campaign needed to be adjusted if the CPL was higher than the industry average.

What is a good Cost Per Lead?

The ideal consumer, market, competition, and specific business and industry all play a role in determining a successful CPL.

A higher CPL may indicate a higher quality lead and a lower overall customer acquisition cost if you want quality. Even if the leads aren’t as qualified, you could want to lower CPL if you’re striving for quantity.


If this is your first digital marketing campaign or you’re launching a new service, put up analytics and a dashboard to track activity for 60-90 days in order to establish performance standards. Adjust your expenditure, messaging, or techniques depending on KPIs to determine a Cost Per Lead that corresponds with your marketing objectives once you have good data.


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