Cost per lead, also known as CPL, is an online advertising pricing model, where advertisers pay a predetermined price for each lead they generate from marketing campaigns. Sometimes, it is called “online lead generation.”
In ecommerce, CPL is often leveraged by businesses that sell subscription services or high-value products. In contrast to cost per click (CPC) and cost per mille (CPM) pricing models, — where marketers are charged for clicks and impressions, respectively — CPL advertisers only pay for qualified leads (regardless of how many clicks or impressions their ad receives). With a cost-per-lead approach, marketing agencies can better guarantee a return on their online advertising investments to companies that work with them.