Are you looking for a marketing model where you only pay when the customer signs up? Are you looking for a model where you get the contact information of each of your potential customers who are interested in your product? Do you want to learn more about CPL (Cost per lead) marketing?
Are you looking for the correct information on Cost per lead marketing? Are you looking to put your product onto the market and want to learn more about marketing strategies? Do you want to increase your knowledge regarding the knowledge of marketing through CPL (Cost Per Lead)?
Do you want to learn how to use CPL to increase or optimize your campaigns? Or are you researching different marketing models to learn more about the art of marketing?
If yes, you have come to the right place, marketing takes a strategy to follow and it depends on the type of product you have that you want to market, CPL is one of the most widely used models being used. As the name suggests CPL is a marketing model where the advertiser pays the publisher on each lead that is produced, CPL is discussed in further detail below,
CPL (Cost Per Lead)
CPL stands for Cost-per-lead, it is a digital marketing model which is mostly used by subscription selling businesses and businesses who sell high value products. In this model the advertiser pays for a signup by a user who is interested in the product of the seller, it is also known as online lead generation.
This model is contrary to that of CPC and CPM where the advertiser is charged for the number of impressions and the number of clicks that are made by the people who are interested in the product of the seller.
In CPL the advertiser only pays for the people who are most interested in the product, and they sign up for it, this means that the advertiser is not charged for how many clicks or impressions are made during that campaign. An advantage of using CPL is that it guarantees the price to performance that you are expecting, it ensures that the money that you’re giving is for the people who have already signed up, it gives a sense of reliability to the investors that they’re not giving money for views rather they’re giving money for people who are already interested, which means that CPL allows its advertisers to guarantee their results of the money that they are investing.
CPL provides its users the data that can eventually tell if they are getting new customers in a cost-efficient way,CPL is the amount required to acquire a new customer from a running marketing campaign, and these customers arise when they see an advertisement and they sign up for it because they’re interested.
How to calculate CPL:
The CPL or cost per lead formula is not difficult to use, you just have to find out some certain information that you can input in to the formula to generate required results, the information is,
The amount of money that has been spent on the marketing campaign.The number of leads that are generated through that campaign.
CPL= Total amount spent / total leads generated.
Why is CPL important:
Cost per lead is an easy to calculate model that can have many benefits and comes with its own perks, it can be used and applied to any advertising campaign and this can be done on any channel, it is also used as a great success metric for a campaign and especially when it is used in accordance to other marketing models or metrics as well.CPL has gained light and has grown in importance as many marketers have come to know its perks and benefits over time.
In the early days, leads could only be generated through online searches of the product or through online directories, which were then further sold to other online businesses at high and expensive costs, which made it difficult for both parties to do, the businesses that bought these leads couldn’t afford them as they didn’t do enough for the price, they were sold in, and so the businesses couldn’t justify their choice of buying the leads.
Businesses have been able to adapt latest technological uses, as online advertising has become much more complex than it used to be the businesses have managed to grow with time to adapt the use of technology and they used this knowledge to target their audience through their ads more effectively, which resulted in a higher quality, but low-priced CPL.
And with the rise of technology, social media has also become the face of the internet, which also provide utility to businesses connect and reach to potential buyers, which resulted in a further reduction of cost per lead, which was what they required from the beginning.
What is a CPL model:
CPL model, which was previously used by the affiliate marketers, CPL is a model where the contact information of each lead is derived which can then be further used for marketing of future products,There are two basic models of CPL ads, SOI which stands for single opt-in and DOI which stands for Double opt-in,
SOI (Single opt in) ads:
- In SOI the leads can be any user that inputs the required information on the form.
- In SOI there are mostly high conversion rates, but users often input false information about themselves which makes the lead go redundant.
DOI (Double opt-in) ads:
- Leads are the users that take two actions, the first action will be to provide the required information on the form, and the second one would be to confirm their identity by confirming their information through their SMS or email. These types of leads are of higher quality as they are the ones who are more likely to convert.
- High quality leads mean that they also generate more revenue.
How to reduce CPL:
Most of the marketers and publishers want CPL to go as down as possible without effecting the quality of leads that they are generating, and many marketers have stated that generating high quality leads can be challenging and difficult to do, organizations are trying to look at more and more lead generating processes and methods to reduce their CPL as much as possible to lower the investment rate while generating almost the same or better result than before,
There are several ways and methods that can reduce their CPLs so that they can get the most out of their investments:
Monitor the performance through network:
By monitoring the segments through networks an organization can check the campaign’s success on an individual level. If there is a problem and the network partner is not performing, then the advertisers can make the choice of opting out and make network partners that will generate low CPLs.
Monitor performance through Device:
CPL is a model in which not all devices are equal with each other. The reason is that they monitor what device is generating the greatest number of leads and then they choose to publish advertisements on the device that is performing the best for their ad campaign in generation of leads.
Do an ad review:
One of the most important ways for an organization to reduce their CPL is to do an ad review, they can monitor if an ad is receiving a large number of clicks and if those users are converting or not, if that is the case then the advertiser can change or modify the page where a potential lead lands to increase the chances of gaining more leads and more conversions and then lower the CPL.
Advantages of using CPL
There are many advantages of using this marketing model and they increase when CPL is used in accordance with other metrics, we have discussed some of the advantages below:
1. Easier Sales:
The advertiser only pays the publisher when a lead is created, which has caught the eye of many advertisers, this means that advertisers are more attracted towards this model, and this makes it easier to appeal to the advertisers.
2. Increases the ability to target:
CPL campaigns are more targeted than the other ad models to be effective, which means that the advertisers are more inclined towards getting to know more about the publishers of their niche by forming relations.
3. Higher chances of quality engagement:
The campaigns that are formed based on CPL are said to be of more quality because of the reason that the leads that are formed are more valuable than the clicks or impressions that are used in other marketing models.
Disadvantages of using CPL
1. Unpredictable revenue generation:
The CPL model can be unpredictable which makes it difficult or challenging for the publishers to accurately predict the revenue.
2. Campaign length:
It can also be challenging to predict when a campaign reaches its climax.
Differences between CPL and CPA:
As we have already discussed, CPL is a great marketing model that focuses more on collecting the contact information of a potential customer or a lead. While CPA which stands for Cost per action is the marketing model where the advertisers pays the publisher only when the customer buys the product, CPA is more driven towards making the user buy this product and it is more product centered, it is more about the timing, it drives the customer to buy the product right at the exact moment which makes it more difficult as if a customer visits the website and leaves without buying a product then it makes it more difficult than before to reach the same customer twice while interesting them into buying a product,
There are also other terms that differentiate between both models,
CPL campaigns are more controlled by the advertiser which makes CPL advertiser centric. On the other hand, CPA campaigns are more publisher centric. Advertisers don’t have much control over where their brand will appear and reach out to their audience, while publishers browse offers and choose which one to run on their websites, advertisers do not mostly know where their offer is running, and they mostly care about the engagement and not where it comes from.
CPL campaigns are lighter weighted which means that they don’t add any external pressure to their potential customers or leads. They usually collect only basic contact information, which can be as simple as their emails or mobile numbers. Whereas CPA campaigns are more complex where their customer must input important information about their credit card and other detailed information.
CPL marketing is used for the long term where the advertisers get the same customers for other future engagement for their products, which is also known as re marketing, to gain consumers through reward programs, loyalty programs, news and sites etc.
CPL average benchmark:
Regardless of CPL’s ability to variety of industry, channels etc. there are industry average benchmarks that were set for a reason, they can be used to determine whether the campaigns being run are cost effective regarding the market.
In general, CPL has a great potential of delivering the required results of growth of audience and engagement that is required. Online businesses use CPL campaigns for advertising and the reason for this is that the advertisers use the information that is put into the form to further develop into repeated customers.
And with this knowledge, businesses can reduce the number of campaigns that are being run to optimize the return result of the investment that is being made and make the ROI better.
Conclusion
We have discussed in detail the CPL marketing model, its purpose, and how it’s used by which people. As with most marketing metrics CPL is the one that possesses the potential for most variety, it can be across industries, channels and can be either organic or paid ad campaigns. We have done our job of providing complete details about CPL marketing and we hope that this brings you the information that you’re looking for, we wish you the best of luck for your future.