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4 Great Tips for Lowering Your Cost Per Lead

It’s no secret that the costs of running online ads are on a steady rise. There was a time when marketers were able to generate clicks for a couple of cents, but nowadays, those clicks cost dollars, in some cases hundreds of them. 

If current trends are anything to go by, then we can safely expect these costs to double or even triple in the coming years. Small businesses with limited ad budgets now find themselves between a rock and a hard place — continue to pay more for leads or simply do away with paid media ads altogether and explore other lead generation options?  

The good news is that there’s a third option, one that involves spending smarter, as opposed to spending more or saying goodbye to paid media ads altogether. This way, you’re essentially lowering your costs per lead and maximizing your ad spend. 

How exactly do you do that? That’s what we’ll cover in this post. But first: 

What is Cost Per Lead (CPL)?

CPL is simply how much you spend to acquire a new lead. It is one of the most important metrics to keep an eye on since it details the amount spent to get that lead into your sales funnel in relation to your overall ad budget. 

As a metric, it basically represents the ability of your marketing team (or lack thereof) to create and publish high-quality, targeted ads that deliver quality results. 

If your CPL is extremely high and you’re selling low-priced products or services, then you’re losing money. That’s why every marketer’s goal is to keep the CPL as low as possible so they can enjoy higher returns on their ad spend. 

What is Cost Per Lead | Tulumi Digital Marketing

How do I lower my CPL?

1. Do a thorough ad review

In most cases, it’s best to revisit best practices and see if your ad isn’t straying far. Conduct an ad performance report and examine everything — ad text, imaging, placement, and even the performance of the landing page. The goal is to identify potential issues that may be contributing to a higher CPL. 

For example, if you find that a landing page isn’t performing as expected, but then the message of the ad actually has a pretty good click-through rate (CTR), you could use that ad message on a landing page that’s performing better. This can help generate more clicks at a lower CPL. 

2. Drill down on your audience targeting 

One of the main reasons you’re struggling with really high costs per lead is because your ad is being shown to the wrong crowd. If you’ve run a few ad campaigns, check out the data and specifically focus on the parameters used to segment your audience. Find more important details that you can use to drill down on your audience and make sure your ad addresses them directly. 

Additionally, you can check out which demographics recorded the best performance for your ads and then double down your efforts on that particular audience. This way, you’re putting your ads in front of the people most likely to be interested in your business, which in turn, can decrease your CPL. 

3. Revamp the landing page

Just because someone clicks on your ad doesn’t automatically make them a lead. Remember we’re looking at the Cost Per Lead here, not the Cost Per Click. Once they click on the ad, it takes them to the landing page. Their interaction and engagement with the landing page (opt-in, subscribe, etc) are what will determine whether they are a lead or otherwise. 

The idea is to make the landing page as simple to interact with as possible. Be clear on the goal of the landing page and make sure every element on the page is working towards achieving it. Have a single call to action (CTA) so the reader isn’t confused about what they should do next. 

4. Practice A/B split testing

The simple reality is that your first set of ads may not always perform well. That’s why it’s important to employ split testing to identify what elements are working and which ones could use some tweaking. 

A/B split testing is all about comparing different versions of the ad and measuring performance in relation to various parameters, such as target audience, placement, ad format, delivery optimization, creative appeal, and so on. 

By testing out a few variations, you can narrow down on what may be pushing up your CPL and address them squarely. With regular testing and optimization, you should be able to bring the CPL down, even just a little bit. 

Turn to Tulumi for optimized paid media ads and maximized ROI today! 

Tulumi Digital Marketing is the expert to call when it comes to high-performing paid media ads. We work tirelessly to deliver tangible results while sticking to your ad budget and maximizing returns. Get in touch with us today for a FREE consultation by calling (800) 481-1720. 

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Deb Wallace


Deb Wallace brings a dynamic career in mobile and internet marketing. She remains on the industry’s cutting edge for technology and innovation driving new business through establishing strategic partnerships and relationships. She carries with her a vast knowledge in the e-commerce marketplace as well as extensive experience in the online payment processing industry.

Deb is exceptionally well organized with a track record that demonstrates creativity, tenacity, and initiative in achieving both personal and business goals. She is currently focused on providing multiple locations for the company.


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