Cost Per Lead is an online advertising pricing model, where the advertiser pays for a set price for each customer that fills out a sign-up or lead form.
In Cost Per Lead (CPL) campaigns, advertisers pay for the contact information (usually an email address) of a targeted consumer interested in their product or service.
Cost per lead campaigns are often used by brand marketers and direct response marketers looking to build a newsletter list, reward program or customer acquisition program. Many companies use Cost per lead advertising to connect with consumers that are passionate about their brands/causes. Since the customer voluntarily fills out the sign-up form, they are typically a more qualified lead and more valuable to the company. If the visitor fails to successfully fill out the sign-up form, the advertiser is not charged.
For example, a publisher may place a banner ad for another site on their blog. If a user clicks on the advertisement link, they directed to the advertiser’s website where they will be prompted to sign up for a special offer. If the visitor chooses to sign up, the publisher is paid a certain amount based on the agreed Cost Per Lead.
Cost Per Lead campaigns are advertiser-centric, meaning the advertiser remains in control of their brand; they select the publishers that will run their offers and where the ads will run.