Cost per Lead or commonly known as CPL, is actually an online advertising module, where the advertisers have to pay for each sign-up from the interested customer in the displayed advertisement. This online advertising module is quite interesting and profitable for the advertisers. Often CPL module is compared with the CPM (Cost per thousand) or CPC (Cost per Click). Although there are some disadvantages of this module but still you can count some really great advantages. In CPM, advertisers are bound to pay for wasted impressions, whereas in CPC, also the advertisers have to pay based on each click on his advertisement. But Cost per Lead is completely different, if you are the advertisers you have to pay only and only when a qualified sign up comes in. it is indeed good news for the online advertisers that in CPL you get guaranteed returns. In the recent times this technology has shown fats growth. You can also call it Online lead generation.
It is to keep in mind that leads in online advertisement is basically of two broad types- sales lead and Marketing leads. Sales leads are generated on the basis of demographic details which could be age, income, gender and many more. Whereas marketing leads are normally brand specific generations of leads for a very unique offer or advertisement. With the wide usage of Cost per Lead strategy it has become really easy for the advertisers to generate lead in very short time and at very affordable rates.
Often people get confused between Cost per lead and Cost per Action. But both are completely different. The differences are-
In CPL campaigns advertisers pays for a lead who is interested for the advertisement of the advertiser. It could be the interested person’s contact number or any worthy information. CPL campaigns are most suitable for brand marketers and direct response marketers who are looking to engage consumers at different touch points – be it by building a newsletter list or member acquisition program. But in CPA campaigns advertisers are compelled to pay for any action on the advertisement.
Cost per Lead campaigns are very much advertisement centric. The advertisers can manage to stay within the boundary of the selected publishers to run his product or offers. But Cost per Action and affiliate marketing are essentially publisher centric. Advertisers have no control over the brand or the offer as it depends on the publishers. Publishers only choose which offer to display in the website. Advertisers often do not know what exactly the offer is displaying in his website.
Cost per Lead campaigns are high volume and light weight. In this type of online advertisement module the customers can just submit their basic contact information which h could be a telephone number or may be just the email id. But Cost per Action is typically complex and of really low profile. Customers might feel hassled while you are using CPA as it requires the detailed information of the customers.
So when we actually sit and discuss about the online advertisement modules, we can easily conclude that it is better that you as advertisers opt for CPL.