Cost Per Lead (CPL) - Definition
Digital advertising is the land of acronyms and technical terms. Our glossary can help you make sense of it all with definitions of the most common terminology.
What is Cost Per Lead (CPL)?
The price a marketer pays for each lead generated is known as cost-per-lead (CPL). This metric indicates how much an advertiser spends to acquire a potential customer, typically identified through actions such as filling out a form to provide contact information. These forms can capture details like a name, email address, phone number, or other relevant information, which indicates interest in the product or service. CPL is calculated by dividing the total cost of the advertising campaign by the number of leads generated. Cost-per-lead is an important metric for evaluating the effectiveness of lead generation efforts, as it helps marketers determine how efficiently they are attracting qualified prospects to their sales funnel.