PPL

Stands for "Pay Per Lead." PPL is similar to CPL, but measures the cost per lead from the advertiser's perspective. For example, if an advertiser pays $500 for 1,000 leads, the advertiser's average PPL is $0.50 ($500 ? 1000). Leads can be anything from basic page views to product purchases or new service signups. Leads that generate more revenue generally have a higher PPL.

Advertisers often monitor PPL to measure the effectiveness of certain ads. By comparing the average revenue per lead to the PPL cost, the advertiser can determine if the ads are increasing or decreasing profit. For example, if a the average return on a lead is $0.80 and the PPL is $0.50, there is an average profit of $0.30 per ad. However, if the average return is less than $0.50, the ads should be modified or stopped since the leads cost more than the revenue they are generating.

"PPL" is also used in online chat as an abbreviation for "people."

Updated: October 16, 2007

Tech Factor: 7/10

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