Cost Per Lead (CPL)

Last Updated: May 2, 2013

Definition - What does Cost Per Lead (CPL) mean?

Cost per lead (CPL) is an online advertising pricing model that indicates the exact revenue earned by a publisher for creating a lead for an advertiser. CPL advertising is the means of generating guaranteed returns for advertisers on their online advertisements. As a result, the CPL advertising has experienced significant growth and is considered one of the fastest-growing sections of online advertising. CPL advertising is also referred to as online lead generation.

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Techopedia explains Cost Per Lead (CPL)

The CPL pricing model is one of the top types of online advertising based on its return on investment for the advertiser. Unlike 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 details or in few cases, the demographic details of an individual who is interested in the service or product of the advertiser. In online lead generation market, advertisers can look for two types of leads: sales leads and marketing leads. Sales leads are generated on the basis of the audience's demographic criteria such as credit score, income and age. These leads are then resold to a number of advertisers. Sales leads are common in mortgage insurance and finance 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 try to keep customers engaged through various activities such as newsletters, community websites, reward programs or member acquisition programs.