What is Cost Per Lead (CPL)?
What is cost per lead?
Cost Per Lead (CPL) is a marketing metric that calculates the cost incurred by a company to acquire a single lead.
A lead is typically defined as a potential customer who has shown interest in a brand's product or service by completing an action, such as signing up for a newsletter, filling out a form, or registering for an account.
CPL is commonly used in performance marketing campaigns to measure the efficiency of advertising spend.
How does cost per lead work?
CPL is calculated by dividing the total cost of a marketing campaign by the number of leads generated through that campaign.
For example, if an iGaming brand spends $1,000 on an advertising campaign and acquires 100 leads, the CPL would be $10.
This metric helps brands understand how much they are paying for each potential customer and allows them to evaluate the return on investment (ROI) of specific campaigns or channels.
Why is cost per lead used?
CPL is used to measure the effectiveness of lead-generation campaigns and optimize marketing budgets. For iGaming brands, it is particularly useful in understanding which marketing channelsāsuch as social media, paid search, or affiliate partnershipsāare delivering the best results in terms of generating interest from potential players. By focusing on reducing CPL without compromising lead quality, brands can achieve better ROI and allocate their budgets more effectively.
Examples of cost per lead usage.
- Affiliate Marketing Campaigns: An iGaming brand works with affiliates who drive traffic to its website. The brand calculates CPL to determine how much it costs to acquire leads through these partnerships.
- Paid Search Campaigns: A brand runs ads on search engines targeting keywords like "best online casinos." CPL helps evaluate the cost-effectiveness of these campaigns compared to other channels.
- Social Media Advertising: If an operator promotes a free demo or bonus offer via social media ads, CPL can measure how much it costs to attract users who sign up via those ads.
Advantages of cost per lead.
- Budget control: Provides transparency for advertisers to manage and optimize their spending.
- Channel performance evaluation: Helps brands identify which platforms are most effective at generating quality leads.
- Predictable costs: Offers insights into how much investment is needed to meet lead-generation goals.
Tips for using cost per lead
Tips for iGaming brands:
- Focus on lead quality: While lowering CPL is desirable, ensure that the leads generated are relevant and likely to convert into players. Use data analytics to assess lead quality alongside CPL.
- A/B test campaigns: Experiment with different ad creatives, targeting options, and call-to-action (CTA) strategies to identify the most cost-effective methods for acquiring leads.
- Leverage retargeting: Use retargeting campaigns to re-engage users who showed interest but didnāt complete the desired action. This can often improve lead conversion rates at a lower CPL.
- Optimize landing pages: Ensure that landing pages are designed for high conversions with clear CTAs, fast loading times, and user-friendly layouts.