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Performance

CPL (Cost Per Lead)

Also known as: cost per lead

Definition

CPL is advertising spend divided by the number of leads generated. It measures top-of-funnel efficiency but says nothing about whether those leads are qualified or ever convert.

CPL is easy to improve and easy to game — loosening a form, broadening targeting or offering an unrelated incentive will all drive it down while making the pipeline worse. Optimising for CPL in isolation reliably produces cheaper, worse leads.

The useful version is cost per qualified lead, defined jointly with sales and measured after qualification rather than at form submission. In UAE real estate, for example, a AED 80 CPL with a 10% qualification rate is far worse than a AED 240 CPL qualifying at 40%.

Formula

CPL = Ad spend ÷ Leads generated

More in Performance

Attribution window

An attribution window is the period after an ad interaction during which a resulting conversion is credited to that ad — commonly 1, 7 or 28 days for clicks and 1 day for views.

CAC (Customer Acquisition Cost)

CAC is the total sales and marketing cost required to acquire one new paying customer over a given period, including media spend, agency fees, tooling and salaries.

Cohort analysis

Cohort analysis groups customers by a shared starting characteristic — usually acquisition month — and tracks their behaviour over time, revealing retention and value patterns that blended averages hide.

Consent mode

Consent mode is a mechanism that adjusts how analytics and advertising tags behave based on a user's consent choices, allowing modelled measurement when tracking consent is withheld.

Contribution margin

Contribution margin is revenue minus all variable costs — cost of goods, shipping, payment fees, returns and marketing — showing what each sale actually contributes toward fixed costs and profit.

Conversion rate

Conversion rate is the percentage of visitors or sessions that complete a defined action — a purchase, form submission or booking — within a measurement period.

All 87 terms
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