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The CPL, or Cost Per Lead, refers to the amount that an advertiser pays for each lead or prospect generated through an advertising campaign.

A lead is a user who has shown interest in a product or service, usually by providing contact information or completing a specific action. This model is especially valuable for companies that have a longer or more complex sales process, where the initial objective is to capture information from the potential customer to then nurture and guide them towards conversion.

The CPL is a key indicator (KPI) in evaluating the performance of an advertising campaign, since it provides information on the cost associated with lead generation and allows calculating the return on investment (ROI) of the advertising strategy.

CPL = Total advertising expenditure / Leads generated