Glossary
Cost Per Lead (CPL)
Cost per lead, or CPL, is how much you spend on ads to get one lead.
Formula
CPL = ad spend ÷ leads
Example
Spending $900 to get 45 leads means a CPL of $20.
How to read it
The best CPL is the one that produces customers at a profit, not the lowest number.
Why it matters
CPL is easy to measure but only part of the story. A cheap lead that never books costs more than an expensive lead that buys.
Common mistakes
- Optimizing for the lowest CPL and getting low-quality leads.
- Comparing CPL across very different offers.
- Stopping at CPL instead of tracking cost per booking and per sale.
How to improve CPL
- Improve the offer and the hook.
- Refresh creative before ad fatigue sets in.
- Tighten targeting to people who can buy.
- Track cost per booking and per sale alongside CPL.
Related: Ad budget calculator
Related terms
Cost Per Acquisition (CPA)Cost per acquisition, or CPA, is how much you spend on ads to get one conversion, such as a booking or a sale.Lead GenerationLead generation is the process of attracting people who are interested in what you sell and capturing their contact details so you can follow up.ROAS (Return on Ad Spend)ROAS, or return on ad spend, is the revenue your ads bring in for every dollar you spend on them.