Pay per lead (PPL) is a pricing model used in online advertising, where advertisers pay for each qualified lead or customer inquiry generated through their ads. Advertisers only pay when a potential customer takes a specific action, such as filling out a form, requesting more information, or subscribing to a service.
Significance and Usage Pay per lead
Pay per lead offers advertisers a cost-effective way to acquire leads and potential customers, as they only pay for tangible results. This model is commonly used in lead generation campaigns, allowing advertisers to track and measure the effectiveness of their advertising efforts based on the number of leads generated.
Example for Pay per lead
For instance, an insurance company may run a pay per lead campaign where they pay a predetermined amount for each user who fills out an online form to receive a free quote. The company can track the number of leads generated through their ads and evaluate the campaign’s performance based on the cost per lead.