CPL is an abbreviated form for ‘Cost Per Lead.’ It is the term that refers to the online payment model in which the payment is actually based on the total number of generated leads. It is also a metric that measures how effective your social media campaigns are performing.
The CPL lets marketers know if they are spending the right amount on various platforms for acquiring new leads, such as Google ads, Facebook ads, and many others. The lower CPL is considered ideal. The higher the CPL, the less effective is your marketing campaign. It is calculated by dividing the cost of total market spends divided by the number of leads generated.
Example
For instance, if your company is spending $1000 on the PPC campaign and 10 users are converted into the lead, then your CPL is $100.
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