Marketing Dictionary
Cost Per Lead (CPL)
Definition
An online advertising pricing model, where the advertiser pays for an explicit sign-up from a consumer interested in the advertiser's offer.
Deep Dive
Cost Per Lead (CPL) is an online advertising pricing model where the advertiser pays for an explicit sign-up or contact from a consumer who has expressed interest in their offer. This means payment is triggered only when a user completes a specific action, such as filling out a form, subscribing to a newsletter, downloading a whitepaper, or requesting a demo. CPL is particularly effective for businesses with longer sales cycles, like B2B companies, service providers, or those offering complex products, as it focuses on capturing qualified contact information for future nurturing.
Examples & Use Cases
- 1A financial advisory firm running a Facebook lead ad campaign, paying $25 for each user who fills out a form requesting a free financial consultation.
- 2A software company promoting a webinar, paying $15 for every attendee who registers by providing their email and job title.
Related Terms
Lead GenerationConversion RateSales Funnel