Digital Advertising Cost Per Lead Calculator
Find out how much the average digital advertising sourced lead is costing you with this easy to use calculator.
The Digital Advertising Cost Per Lead calculator from Seeking Perfection Marketing is designed to help you understand the average cost of acquiring one lead from your digital advertising campaigns. Along with our Return on Ad Spend (RoAS) Calculator and Return on Marketing Investment (RoMI) Calculator you will be able to get a very accurate picture of what your digital advertising budget is producing, allowing you to make informed decisions about future marketing investments.
Use the Calculator
Cost per Lead Calculator
Our calculators deliberately don’t use a currency symbol as we know that businesses from all over the world will potentially use them. If you are a business that operates in multiple currencies make sure the numbers you enter are all in the same currency otherwise you will get an inaccurate result.
The instructions for the Digital Advertising Cost per Lead Calculator are simple:
- Enter the budget spent on a given channel over a given time period into the relevant box (for instance, enter the amount spent on Google Ads into the ‘Ad Spend (Google Ads)’ box).
If you want to know the Cost per Lead for that channel only, or if you only incurred advertising costs on a single channel, you can skip ahead to step 2.
If you had ad spend on multiple channels and would like to know the blended Cost per Lead (i.e. the cost per lead for your total ad spend across all channels) go ahead and add spend to all the relevant boxes. Boxes have been included for Google Ads, Facebook Ads and LinkedIn Ads as these are the most popular platforms, however there is also a box for ‘Other’ if you have used channels not listed here.
- Enter the number of leads generated into the last box. If you are trying to understand the blended Cost per Lead enter the total of all leads created from all of your digital advertising channels. If you are just wanting to know the cost per lead for an individual channel simply enter the leads from that channel only.
3. Hit Calculate
The result is your Cost per Lead. This is what it has cost you, on average, to generate one lead. Of course, how you define a lead varies from business to business, but this will very quickly help you understand the cost of generating new leads from digital advertising activities. We have a blog post on Understanding Cost Per Lead if you want more information on that.
And that’s it! The next step for any business serious about understanding the impact of digital marketing on their bottom line would be to look at downstream lead metrics. By this we mean investigating how many leads typically result in further actions from the prospect and ultimately become customers. Once these conversion metrics are known you will fully understand how much digital advertising is contributing to sales. Furthermore, you can also start exploring the Average Order Value (AOV) of your digital advertising sourced customers and begin to understand the revenue that has been generated from these leads.
You can even go as far as looking at customer retention rates to establish a Life Time Value (LTV) for your digitals ads sourced customers and make strategic decisions about your level of investment in digital advertising. Our Return on Ad Spend Calculator allows you to do this. And if you are wanting to know the entire cost of running digital advertising campaigns for your business – including agency fees and other overheads – please check out our Return on Marketing Investment Calculator.