CPL

CPL (Cost per Lead) – is a metric that evaluates the cost of attracting an individual lead. In other words, this is an indicator of the value of each potential customer who, for example, left their contact on the advertiser's website. This is one of the main parameters used in evaluating the effectiveness of ongoing advertising campaigns.

This metric is calculated by the formula:

For example, if you spent $700 on advertising, and in the end collected 220 leads, then the cost of each individual lead is 700/220, or $3.18.

The lower the cost per lead, the better. However, this figure may vary depending on the type of business. For example, it will be higher for car dealers than for a company providing various services.

Knowledge of CPL allows you to evaluate the effectiveness of ongoing advertising campaigns. So, if the cost of attracting new leads increases, then this means the need to turn off the campaign or make adjustments to the settings.

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