Lead Generation is an online advertising pricing model, where the advertiser pays for an explicit sign-up from a consumer interested in the advertiser’s offer. Leads can be created for purposes such as list building, e-newsletter list acquisition or for sales leads.
In a Cost Per Lead (CPL) or Pay Per Lead (PPL) agreement, the advertiser only pays for leads generated at their destination site. No payment is made for visitors who don’t sign up. A lead is generally a signup involving contact information and perhaps some demographic information; it is typically a non-cash conversion event.
Importance of Lead Generation for Advertisers
The buying process has changed, and marketers need to find new ways to reach buyers and get heard through the noise. Instead of finding customers with mass advertising and email blasts, marketers must now focus on being found and learn to build continuous relationships with buyers.
How Cost Per Lead (CPL) Model Works?
The main difference with a CPA and a CPL model, is that in CPL, the sign-up consists of a “lead”, which can be just a user’s contact detail, such as an email address. This info is later used by the advertiser to try to sell his/her products to the consumer either through newsletters, email campaigns or phone calls.
How do Media Buyers Make Money with CPL?
- Email traffic: Email the CPL campaigns either to your own databases or to databases that you can buy. You can create your own email templates to convince the customers that they want or need a particular product before being directed to the offer.
- Desktop traffic: Use mainly pops to open your own custom pre-lander or the advertiser’s.
- Mobile WiFi traffic : CPL offers are a great way to convert your WiFi traffic, that can’t be monetized through carrier billing products.
CPL advertisement or cost per lead advertising is almost similar to CPA advertisement, but, in this, user generally sign up for newsletter or fill up a survey form. The payout is much better then CPC advertisement in this program. CPL advertisement will depend on your niche or the kind of subscribers you have.