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We built a spreadsheet based cost per lead (CPL) calculator that we feel is: - Easier to understand - More flexible to customize - Easier for saving multiple scenarios …than other CPL calculators we’ve seen to date. Below are the details but let’s first start with the cost per lead formula and the difference between cost per lead and cost per acquisition.

  • JF

    Javier Feldman

    6 months ago #

    I appreciate the free spreadsheet a lot in this post.
    A newbie question though, why is knowing the blended CPL important if you already have the paid ad CPL and inbound CPL numbers? Wouldn't those individual numbers help guide future actions?
    So I guess I'm not clear on what next steps the blended number helps guide.

    • DK

      Devesh Khanal

      6 months ago #

      Hi Javier, I helped develop the spreadsheet. I don't think it's that important except for internal reporting purposes (i.e. management wants to know the marketing department's overall cost per lead). Blended actually obscures or hides information. Whereas paid and inbound CPLs are things you can actually more easily affect. "Ok, we changed our bidding strategy last week and now our paid CPL on these campaigns changed to $x..."

      • GR

        George Revutsky

        6 months ago #

        respectfully disagree - see my comment to the OP, above. You are right that on a day to day basis, the work of the ppc manager is not as imacted by blended cac. But the head of growth should be monitoring blended cac all the time. I know I do, and its been invaluable in making sometimes counter-intuitive decisions that pay off handsomely. .

    • GR

      George Revutsky

      6 months ago #

      Blended CPL is actually super-important, and not just a vanity number. Because channels actually work together, its sometimes very short sighted to cut, say, Facebook acquisition costs, because your CPL or CPA there is $100 while it's only, say, $50 on adwords. Some of the reasons might be facebook drives cold traffic and middle of funnel, then users convert via adword, and organic and direct traffic. So measuring your blended CPL or CPA as you play with the optimal mix of spend across channels is actually vital if you are tasked with growing revenue month over month. This is not, btw, in conflict with optimizing a specific channel - but you can't do so in a vacuum. So net-net - I respectfully disagree with @devesh khanal, below.

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