- March 15, 2023
- 8 minute read
The advantage of the Cost Per Lead (CPL) model is that you will only pay for each Lead actually generated.
To achieve your business objectives, it is essential to monitor the indicators that support you in making adjustments to your Digital Marketing strategies. One such indicator is Cost Per Lead (CPL).
The CPL metric measures the cost-effectiveness of your Marketing campaigns when it comes to generating new Leads for your business. This metric provides companies with essential data to determine if they are sustainably acquiring new customers or not, taking into account the return on investment (ROI).
Cost Per Lead is an online advertising pricing model that indicates the exact revenue earned by an ad publisher when creating a Lead for an advertiser.
The Cost Per Lead (CPL) model implies that the advertiser pays a pre-established price for each Lead generated (a consumer who expresses interest in the advertiser’s offer). You can and should implement a strategic campaign to capture Leads in order to increase your sales. Its advantages are as follows:
These are some of the activity sectors where the Cost Per Lead model can be applied:
The average cost per Lead varies, depending on the industry, market and channel where Lead capture is applied. The segmentation of the projected average cost for this year, by Lead, according to the business sector (USA) is as follows:
| Industry | Low | High | Average |
|---|---|---|---|
| Financial Industry | $44 | $272 | $160 |
| IT Industry | $39 | $370 | $208 |
| Education | $37 | $66 | $55 |
| Healthcare | $36 | $286 | $162 |
| Industrial and Manufacturing | $33 | $235 | $136 |
| Travel & Tourism | $29 | $182 | $106 |
| Retail | $25 | $41 | $34 |
| Consumer Products | $24 | $182 | $105 |
| Telecom | $24 | $64 | $45 |
| Marketing Agency | $22 | $173 | $99 |
| Media and Publishing | $21 | $191 | $108 |
| Non-profit | $16 | $43 | $31 |
| Business Services | $39 | $225 | $132 |
This analysis will help you understand which type of advertising is most effective for your campaign.
| Marketing Channels | Low | High | Average |
|---|---|---|---|
| Events & Trade Shows | $180 | $1,442 | $811 |
| Public Relations / Earned Media | $108 | $480 | $294 |
| Referrals | $54 | $92 | $73 |
| Video Marketing | $59 | $288 | $174 |
| LinkedIn Adverts | $51 | $99 | $75 |
| Webinars | $45 | $98 | $72 |
| Display Advertising (Premium) | $43 | $82 | $63 |
| Content Marketing | $43 | $140 | $92 |
| Display Advertising (Online) | $34 | $42 | $38 |
| Traditional Advertising (TV, Radio, Press) | $38 | $1,200 | $619 |
| Search Engine Advertising | $38 | $181 | $110 |
| Social Media Advertising Channel | $34 | $82 | $58 |
| Email Marketing | $33 | $72 | $53 |
| Retargeting online | $22 | $39 | $31 |
| Paid Social Media Advertising | $21 | $73 | $47 |
| Search Engine Optimization | $14 | $47 | $31 |
The next step is to activate and monitor your Lead Generation campaign. Do not neglect it after activation, as this is the only way you will understand whether the results correspond to your expectations, in view of the initial objectives. This monitoring will also allow the detection of errors and correct actions in a timely manner.
During your campaign, Leads must be qualified and integrated into your business’ sales funnel to convert them into active customers and, consequently, increase your turnover.
Capturing qualified leads is crucial for your company’s growth. However, it is not enough to receive Leads to be immediately successful. It is necessary to qualify them and integrate them into the sales funnel of your business, so that the sales strategy is successful.
To choose the most effective type of advertising for your Lead Capture campaign, you must analyze and understand industries, markets and channels to make a data-driven decision that is most convenient for you. Opt for the Cost Per Lead model and pay only for each Lead acquired.
