Through Cost Per Lead (CPL) advertising, marketers only pay when an interested visitor signs up for their offers.
CPL advertising is the most cost-effective way of getting leads to grow your customer database, newsletter list or community site. You may be in wonder, the fact is, that with 71% year-to-year growth, online lead generation is the fastest growing segment in internet advertising.
Pay per lead scheme is a marketing program when an advertiser pays only for a lead (a user’s signup), who leaves any kind of contact information behind. This could be an email address, phone number or just a name.
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How to calculate your cost per lead
It’s actually a very straightforward formula. Simply divide what you spend on a campaign or channel by the number of leads that came in from that channel.
For example: consider your company spent AED 7,500 on a pay-per-click (PPC) campaign and 50 users converted to leads: Cost per lead = AEd 7,500/50 = AED 150 per lead.
The cost per lead will be different depending on your industry, channel or the quality of a lead. If you want quality, a higher cost per lead might mean a higher quality lead, and a lower overall customer acquisition cost. If you want quantity, you might want to lower cost per lead, even if the leads aren’t as qualified.
The cost per lead will be different for every kind of business, depending on your industry, channel or the quality of a lead.
Pay per lead Marketing's 5 main advantages
Greater quality of Traffic generating
Using such payment scheme as CPL ( cost per lead ) advertisers can be aware of building a quality user base. Since the CPL ( cost per lead ) model implies pricing for a lead generated or for a consumer that is interested in the product, there is a great opportunity for mobile app promotion. The number of owners of various mobile devices increases constantly. Any app developer or a marketer wants to get as much traffic as possible.
PPC ( pay per click ) vs PPL (pay per lead ) in Budget savings
CPL ad model proves to be more cost-effective. Even if an advertisement works poorly, a merchant is not charged. He pays only for a lead. Cost per lead or Pay per lead involves the interest that a potential customer has shown to a mobile app by signing up to a newsletter or performing some other action.
CPA advertising or cost per acquisition pattern has similar characteristics, but it suggests charging for finished sales, in case a user/a subscriber installs an app/becomes a customer.
Cost per Click pattern in mobile advertising also aims to pile up sales. However, paying for clicks may result in the waste of money. Clicks do not imply guaranteed app installs. People may be just curious or click accidentally, whereas lead generation means better chances for gaining a quality audience.
Better targeting opportunities
Lead generation serves to more accurate targeting. Those visitors who are ready to perform an action, e.g. fill in the form, write necessary information about themselves, are more likely to become customers. This provides an app owner with better chances of building a solid user base.
Setting an ad campaign with a fixed price for a lead makes easier the ROI estimation. This term means return on investment (a measure of the effectiveness of your ad investment).
CPL advertising is intended for prolonged placement of an ad on a publisher’s resource. More impressions come together with the longer visibility. Thus it gives an advertiser more opportunities for brand awareness.
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