Where is it used?

CPL is primarily used in influencer marketing campaigns where the objective is to collect leads or build a database of potential customers for future marketing efforts. It is a common metric for brands looking to nurture relationships with potential customers and guide them through the sales funnel.

When to use it?

This metric is particularly relevant when a brand's goal is to build an email list, offer a downloadable resource in exchange for contact information, or encourage sign-ups for a service. It helps in evaluating the cost-efficiency of using influencers to acquire potential customers.

How to use it?

To track CPL in influencer marketing, brands typically provide influencers with unique trackable links that lead to a landing page with a lead capture form. Analytics tools are used to monitor the number of leads generated from this traffic. The CPL is then calculated by dividing the total cost of the influencer campaign (or the cost associated with a specific influencer) by the number of qualified leads obtained as a direct result of their promotion.

Why do we need it?

Monitoring CPL allows brands to understand the cost-effectiveness of their influencer marketing spend in terms of acquiring potential customers who have expressed an interest in their offerings. It helps in assessing the value of different influencers and campaign strategies in generating leads and optimizing marketing investments for better returns.