What is cost per lead (CPL)?
Cost-per-lead (CPL) is an online advertising pricing model that shows the exact amount of revenue a publisher made from creating a lead for an advertiser. CPL advertising is the means to generate guaranteed returns for advertisers in their online advertisements. As a result, CPL advertising has seen significant growth and is considered one of the fastest growing areas of online advertising. CPL advertising is also known as online lead generation.
The CPL pricing model is one of the best types of online advertising based on the return on investment for the advertiser. In contrast to the cost-per-click model, in CPL campaigns the publisher hosting the advertisement is only paid when leads are generated. A lead refers to the contact information or, in a few cases, the demographic details of a person interested in the advertiser's service or product.
In the online lead generation market, advertisers can search for two types of leads: leads and marketing leads. Sales leads are generated based on the audience's demographic criteria such as creditworthiness, income, and age. These leads are then resold to multiple advertisers. Sales leads are common in mortgage insurance and financial markets. Marketing leads are generated for a unique advertiser offer and are usually brand specific.
CPL campaigns are best suited for brand marketers and direct response marketers who are trying to retain customers through various activities such as newsletters, community websites, rewards programs, or membership acquisition programs.