CPL Gains Traction For Marketing Leads

by Jack Loechner, Sep 10, 2009, 8:15 AM

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According to the Cost per Lead Advertising Data Report from Pontiflex, marketers are turning to pay for performance pricing models, wherein media is purchased based on a defined success metric or specific action - instead of impressions. As a result, Cost-per-Lead (CPL) advertising has gained significant traction across verticals.

Pontiflex posits that a marketing lead, as opposed to a "sales" lead, is the contact information of a consumer who has explicitly signed up to receive communication from a specific brand. Advertisers commonly engage marketing leads through social networking groups and community sites. According to the study, direct response marketers use marketing leads to build e-newsletter lists and direct mail lists to drive revenue.

"Marketing Lead" Engagement by Advertisers (August 2008-July 2009, % of Respondents)
Source of Lead	% Advertisers Using
Brand or community site	51%
E-Newsletter with "deals"	31%
Free trial offer	9%
Advocacy	5%
Catalog or DVD	2%
Other	2%
Source: Pontiflex Internal Research, September 2009

The emergence of marketing leads has changed the online lead generation landscape. In a marketing leads CPL campaign, advertisers gain exclusive marketing rights to individuals who want to hear from them, and pay only for valid sign ups. As a result, marketers from all major industry categories have adopted CPL advertising,

Cost-per-lead pricing varies by industry, and also by the amount of data consumers are willing to provide about themselves. Basic fields include first name, last name, email address and postal address fields. Premium Fields offer more detailed information, including telephone numbers, Twitter usernames, custom questions, and geo-targeted information.

On average, the cost per lead for basic info was $0.60 in North America between August 2008 and July 2009; the average premium cost per lead was nearly four times as high, at $2.27. Advertisers in the travel and nonprofit industries saw the highest average costs per lead for basic fields, at $1.40 and $1.33, respectively. But the highest costs for premium fields were in the technology, health and entertainment industries, each paying at least $3.00 per lead.

Average Cost Per Lead by Industry (August 2008-July 2009)
Industry	Cost for Basic Fields($)	Cost for Premium Fields($)
Consumer packaged goods	$0.87	$1.13
Travel	1.40	2.50
Non-Profit	1.33	1.85
Health	0.60	3.36
Entertainment	0.80	3.00
Online retail & catalog	0.59	-
Technology	0.43	3.75
Average (overall)	$0.60	$2.27
Source: Pontiflex Internal Research, September 2009

 According to the report, CPL advertising best practices recommend capturing basic information during the first contact with the end consumer, and capturing additional information over time as the brand builds a relationship with the consumer.

For additional information, please review the Pontiflex whitepaper here.

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