(Cost Per Lead)


Some advertisers use their website primarily to generate leads that can then be pursued by their internal sales staff or by their dealers. The most common abbreviation for this type of advertising is CPL, or "cost per lead".

CPL pricing is really just a subset of CPA (cost per action) pricing. As with CPA pricing, an ad can be shown many times and even generate many clicks, but a charge will be incurred only when the user provides sufficient identifying information to become a qualified lead. CPL pricing is desirable for advertisers who feel that they can make their ad spend fully accountable because they are paying only for actual sales leads.

Advertisers using CPL pricing don't have to worry about paying for wasted impressions (as they might with CPM advertising), nor do they have to worry about click fraud as they might with CPC / PPC ads.

Publishers are often wary of CPL arrangements, since the publisher is relying on the advertiser to create an ad that generates clicks, and also to convert a reasonable number of those clicks into leads. This leaves the publisher at the mercy of the advertiser, since factors like site ease of user and complexity of the form will influence the number of clicks that become leads.

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