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What is cost per lead?

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆
Want to know about cost per lead in adwords search and display campaigns. Is it same as cpa? If yes, how to calculate cost per lead.. Kindly help citing an example.

Thanks
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Accepted by topic author Jack N
September 2015

Re: What is cost per lead?

Participant ✭ ✭ ☆
# 4
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I forgot that you had also asked for an example..

Let's say I am tracking forma as conversions and campaign A spent $60 and generated 2 forms. The CPL would be $60/2= $30. The CPL is $30.

Now let's say campaign B spent $100 and generated 10 forms. $100/10= $10 so the CPL is $10.

If these were the only two campaigns in my account, then I have spent $160 for 12 conversions, which makes my overall CPL $13.33

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Re: What is cost per lead?

Top Contributor
# 2
Top Contributor

Hi Jack,

 

Cost per lead basically refers to how much cost you are willing to pay per lead. In AdWords, you have Cost per Acquisition or CPA bidding which means that how much an advertiser is willing to pay for a conversion action which could be filling up  some contact form, some sign up form etc...

 

You can read more on CPA bidding in this reference: https://support.google.com/adwords/answer/2472713?hl=en

 

Let us know if that helps!

Pankaj

Re: What is cost per lead?

Participant ✭ ✭ ☆
# 3
Participant ✭ ✭ ☆
Hi Jack,

To add to Pankaj's already awesome response, CPA and CPL are used interchangeably. It is a measure of what you pay per conversion, whatever your conversion may be.

Many people track form fills and calls as leads. However; if your conversion point was something different like a video play or a download, it would still work the same way. You will see the count of conversions in the conversion column for whatever you are tracking.

To calculate CPL, take your cost divided by your conversions and you will get your cost per lead.
Marked as Best Answer.
Solution
Accepted by topic author Jack N
September 2015

Re: What is cost per lead?

Participant ✭ ✭ ☆
# 4
Participant ✭ ✭ ☆
I forgot that you had also asked for an example..

Let's say I am tracking forma as conversions and campaign A spent $60 and generated 2 forms. The CPL would be $60/2= $30. The CPL is $30.

Now let's say campaign B spent $100 and generated 10 forms. $100/10= $10 so the CPL is $10.

If these were the only two campaigns in my account, then I have spent $160 for 12 conversions, which makes my overall CPL $13.33

Re: What is cost per lead?

Follower ✭ ✭ ☆
# 5
Follower ✭ ✭ ☆
Thanks a lot , Amy..that example helped me... wow...

Re: What is cost per lead?

Follower ✭ ✭ ☆
# 6
Follower ✭ ✭ ☆
Thanks a lot..that was insightful Smiley Happy thanks

Re: What is cost per lead?

Rising Star
# 7
Rising Star
Hi Jack,

Here is another thread on the same topic that may be helpful to you. https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/How-to-Calculate-CPA/td-p/423123

Cheers!

Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
Did you find any helpful responses or answers to your query? If yes, please hit "Like" or "Accept as Solution"

Re: What is cost per lead?

Participant ✭ ✭ ☆
# 8
Participant ✭ ✭ ☆
Happy to help!

What is cost per lead?

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

If i have spent $50 for one day and did not get any sale (which is lead to me) what will be CPL for me for that day ?

 

What is cost per lead?

Rising Star
# 10
Rising Star

Hi,

 

Welcome to the community!

 

CPL by definition is calculated only when you record a lead. So till you record a lead against your spends, your CPL metric will not be calculated and is null and void for that amount of time.

 

Does that make sense?

Cheers,
Shashank Singh, AdWords Rising Star |
Did you find any helpful responses or answers to your query? If yes, please hit "Like" or "Accept as Solution"