What is CPL?
However, for those of you who are new to MMO in general, the affiliate marketing model in particular will surely be a little surprised about the concept of CPL?
In essence, CPL is an acronym for Cost Per Lead – also known as cost per lead.
Lead here is understood as potential customers who are interested in the products/services of advertisers.
Specifically, advertisers (also known as Advertisers in Affiliate marketing) will call CPLs the KPIs for each specific advertising campaign.
Through that, it will direct customers to perform actions such as filling out an information form, helping Advertisers get Lead’s information such as: name, age, phone number, email….
This is a source of potential customers who are likely to buy and use the products/services that the business provides.
In order for them to perform those actions, businesses must go through many forms such as consulting, marketing, care, …
Note, CPL is the amount of money that advertisers and businesses spend to get that list of Leads.
It is not the cost of getting an order, getting a buyer, or using the product/service you sell.
This CPL index will depend on the campaign running ads on the platforms Adwords, Facebook … that the business is implementing.
Difference between CPL and CPA. advertising model
After understanding what is CPL? But in other affiliate marketing or MMO monetization model, many people confuse CPL and CPA.
However, these are two completely different metrics.
Specifically, in CPL campaigns, advertisers will have to spend some money to run ads to find potential customer information.
CPL campaigns will often be suitable for brand marketers, direct marketing partners who want to attract customers quickly through running ads on websites, social networks, or creating promotions. forever, exchange.
And CPA stands for Cost Per Action, which means the cost that advertisers will pay for each time a customer takes an action.
Specifically, when you bring an ad to reach many people, when they read and take actions such as purchase, fill out a form, register, etc., we will call it an action take.
CPA is the current thing, it will focus on motivating customers to make a specific purchase. If customers visit the website but do not buy anything, it is very difficult to advertise to them a second time.
CPL campaigns are always ad-centric. Advertisers will still be in control of their brands, choosing reliable partners and distribution in line with the offers they have.
On the other hand, CPA and affiliate marketing campaigns will be partner-centric. Ads will appear on partner websites. This will prevent advertisers from fully understanding a partner’s campaign.
In addition, CPL campaigns are often powerful but not always effective. Because campaigns put out mainly for customers to send contact information.
The CPA campaign will have a low impact but higher complexity, when customers have to provide more detailed information when deciding to buy.
So, when understanding what is CPL? When doing affiliate marketing, what are the advantages and disadvantages of this indicator?
What are the pros and cons of running CPL ads?
When deciding to do affiliate marketing based on CPL, there will be advantages and disadvantages such as:
The first reason many Affiliates choose to run CPL ads is the higher commission rate than CPM (Cost Per Mile) or CPC (Cost Per Click).
Specifically, the CPL index when running affiliate advertising campaigns will not depend on whether your page has more or less people to reach.
Instead, this CPL index will ask viewers and customers to provide information in accordance with the original purpose of the business.
Although this requirement is higher, in return it is not too complicated. Thereby, it will help the CPL commission rate to be higher than other forms.
In addition, what makes the CPL form simpler than other forms of advertising, is that the CPL does not require the order to be successful.
Because the success of CPL will be measured by customers viewing and filling in information. When a customer fills in the information, Publisher will receive a commission.
Compared to other advertising campaigns, it is necessary to have a conversion rate such as a purchase, then Publisher has a commission.
Really more attractive, right?
Besides the above advantages, when doing affiliate marketing under CPL, there will also be certain limitations.
For example, when the business lacks human resources or the new publisher is not qualified, it will be difficult for leads to convert into business customers.
Besides, CPL is quite a difficult destination for advertisers with limited budget and advertising accounts.
Even the business is at great risk if the Lead received is not of good quality, the customer provides the wrong information.
Not to mention, the non-standard Landing Page of the business also makes the CPL conversion rate even lower.
The importance of CPL for sellers in affiliate marketing
As the concept of CPL is explained above, how important is the CPL index when doing affiliate marketing?
The answer will depend on many factors such as: The quality of the leads obtained, the ability to convert sales in the business, the reputation of the publishers, etc.
It is easier to understand when the cost that the business spends is the CPL, which collects the amount of data and information about the Leads.
Getting potential customers to buy and use products/services will depend on the reputation and quality of Publishers who reach out to customers.
So, if the CPL index is not of good quality, it is easy to collect the Leads.
So does CPL make a profit for the business?
It should be affirmed that eliminating CPL costs can completely help businesses generate profits.
Even if done properly, it is also a “gold mine” to ensure that the business will dig forever.
Especially, high-value industries and products are often CPL objects. When acquiring potential leads, knowing how to take advantage of Publishers for advice and care will easily bring in a certain number of customers.
Thereby ensuring advertisers will get the maximum profit possible.
Although the Lead in the CPL is not a customer yet. However, the ability to convert it into a profit is very high if the Advertiser knows how to take advantage of it in affiliate marketing campaigns, targeting the audience.
In particular, with the amount of Lead that businesses get from CPL, they can take advantage of the long-term to build effective remarketing campaigns.
At this point, I firmly believe that building affiliate marketing campaigns under CPL will be much more effective.
See more: What is Publisher? Qualities required when doing affiliate marketing
The end has come, so everyone understands better what CPL is? Like the importance of CPL in Affiliate Marketing, right?
This is really an important indicator to help people build more effective advertising and marketing campaigns now and in the future.
With hundreds of thousands of experienced Publishers today, it is guaranteed to help businesses get the best quality Leads, with an unlimited budget.
Hopefully, with the knowledge about what CPL is, it will help everyone to build the most suitable campaigns for themselves.
Final. Thank you everyone for following Digital By Rick, if you feel this article brings many benefits to everyone, do not hesitate to share, as well as look forward to our upcoming latest Affiliate knowledge.