Date First Published: 26th September 2022
Topic: Web Design & Development
Subtopic: Web Advertising
Article Type: Computer Terms & Definitions
Difficulty: MediumDifficulty Level: 6/10
Learn more about what PPL is in this article.
Stands for Pay Per Lead. PPL is a paid online advertising method where advertisers are charged for each potential customer. PPL is similar to PPC (pay per click), but advertisers are not charged for each click. They are only charged for each lead. For example, if a visitor clicks on an ad, is directed to the advertiser’s website and chooses to sign up, a lead would be generated and the advertiser will have to pay the publisher a small amount of money for that lead.
Affiliate marketing is an example of PPL advertising as the advertiser only has to pay a small commission if a visitor clicks on the ad displayed on another website and makes a purchase, generating a lead and 'leading' to a sale. The advertiser does not have to pay the publisher any money if a visitor clicks on the ad and does nothing on their website.
Similar to PPC advertising, advertisers can place a bid for the maximum amount of money they are willing to pay per click on an ad. Their costs will vary depending on what they are advertising and the keywords they are using. They can set it to manual, where they choose the maximum bid for their ads or enhanced, which enables the bid to be automatically adjusted based on their goals, clicks, and conversions.
A disadvantage of PPL is that it can promote dishonesty. For example, publishers can engage in deceptive methods of finding and reporting leads so that they are paid for weak or fake leads.
PPL (pay per lead) and CPL (cost per lead) are not the same things. PPL is a paid advertising method and a pricing model where advertisers pay a certain amount of money for each lead, whilst CPL is a financial metric that gives a measure of the cost of each lead for the advertising campaign. CPL measures the overall cost of PPL ads, whilst PPL is simply a paid online advertising method.
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