What is cost per lead (CPL)?
Cost Per Lead (CPL) is a key advertising metric that measures the cost of acquiring a new lead, such as an email subscriber, sign-up, or inquiry.
Factors that may influence CPL:
- Ad targeting: Poor audience selection increases CPL by attracting low-quality leads.
- Lead magnet quality: Weak incentives (e.g., generic discounts) reduce conversions.
- Landing page experience: Slow load times and complex forms lead to higher CPL.
- Ad creatives & messaging: Unclear CTAs or unengaging visuals result in lower lead generation.
- Bidding strategy: Overly aggressive bids can drive up costs unnecessarily.
How do you calculate cost per lead?
Formula
CPL = Total Ad Spend Total Leads Generated
💡 A lower CPL means your campaign is acquiring leads efficiently, while a higher CPL may signal targeting issues or ineffective ad creatives.
What’s a good or bad CPL?
For e-commerce, a CPL of $5 to $15 may be something to aim for. However, e-commerce CPL can also range from $20 to $70. (Source: klipfolio, taglab)
Please note that there’s no exact number that we have to say, so take this for reference. It depends much on your audience targeting and campaign personalization.
CPL vs. CPA
While CPL focuses on lead generation, Cost Per Acquisition (CPA) measures the actual cost of acquiring a paying customer.
| Metric | Definition | Best for | Key difference |
| CPL | Cost to generate a lead (email signup, inquiry). | Lead generation campaigns (newsletters, webinars, free trials). | Leads may or may not convert into customers. |
| CPA | Cost to acquire a paying customer. | Sales & conversions-focused campaigns. | Focuses on completed sales, not just leads. |
💡 If your goal is brand awareness and nurturing leads, focus on CPL. But if it’s direct sales, pay more attention to CPA.
