As of March 2024 we have renamed Apexchat to Blazeo. We are excited to share the next part of our journey with our customers and partners.

Why the name change?

The name ApexChat implies that we are primarily a chat company, which is no longer true. Now we have many offerings, such as call center services, AI, Appointment setting, SMS Enablement, Market Automation, and Sales acceleration (Q2 2024), that go beyond chat. The new name will not only allow us to convey the breadth of our offering but will also better convey our company’s mission and values.

Why Blazeo?

Blazeo, which is derived from the word Blaze, evokes a sense of passion, speed, and energy. A “Blaze” is captivating, illuminates, and represents explosive growth. Blazeo encapsulates our mission to ignite such growth for our customers and partners by delivering innovation with passion, speed, and energy.

SmartHub is live: centralize leads, automate follow-ups, and convert faster with Conversion Intelligence. Learn more →

Cost Per Acquisition vs. Cost Per Lead: Key Differences Explained

Jason Levy June 10, 2025 4 minute read
Cost per Acquisition vs Cost per Lead

(Updated 6/27/2025)

When running marketing campaigns, understanding the differences between Cost Per Acquisition (CPA) vs. Cost Per Lead (CPL) is crucial for optimizing your budget and improving return on investment (ROI). While both metrics play significant roles in tracking campaign success, they serve distinct purposes and impact your marketing strategies differently.

In this comprehensive guide, we will break down CPA and CPL, explain their differences, provide real-world examples, discuss industry benchmarks, and help you determine which metric is more suitable for your business goals.

What is Cost Per Lead (CPL)?

Cost Per Lead (CPL) is a marketing metric that measures how much it costs to generate a single lead. A lead refers to a potential customer who has shown interest in your product or service, usually by filling out a contact form, signing up for a newsletter, or engaging with gated content.

How to Calculate CPL

The formula for calculating CPL is:

CPL = Total Marketing Spend / Number of Leads Generated

For example, if you spend $5,000 on an ad campaign and generate 500 leads, your CPL would be $10.

Pro Tip: To calculate cost per acquisition, flip this to CPA = Total Marketing Spend ÷ Number of Acquisitions.

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Why CPL Matters

  • Measures Lead Generation Efficiency: Helps businesses assess the effectiveness of their marketing campaigns.
  • Budget Allocation: Provides insights into how much budget should be allocated for acquiring new leads.
  • Quality Assessment: Helps evaluate the quality of leads generated from different channels.

Industries That Benefit from CPL

CPL is particularly relevant for industries where the sales process involves nurturing leads over time, such as:

  • SaaS: Software companies depend heavily on lead generation.
  • Real Estate: Agents collect leads for potential buyers.
  • Financial Services: Insurance, loans, and investment firms gather leads.
  • Higher Education: Universities seek leads for admissions and program inquiries.

A lower CPL might indicate cost-effective lead generation, but always ensure the leads are high quality and have conversion potential.

Real-World Example of CPL

If a real estate agency spends $2,000 on ads and receives 100 inquiries:

$2,000 / 100 = $20 per lead

Discover more insights on digital growth at ROI by Blazeo.

What is Cost Per Acquisition (CPA)?

Cost Per Acquisition (CPA) measures the cost of acquiring a paying customer. Unlike CPL, which tracks leads, CPA focuses on converting leads into customers.

How to Calculate CPA

The formula is:

CPA = Total Marketing Spend / Number of Acquisitions (Paying Customers)

For instance, if you spend $5,000 and acquire 50 customers:

$5,000 / 50 = $100 per acquisition

Why CPA Matters

  • Evaluates Conversion Effectiveness: Tracks how well leads convert into customers.
  • Profitability Analysis: Helps determine if acquisition costs align with revenue.
  • Strategic Decision-Making: Guides decisions on scaling campaigns.

Industries That Focus on CPA

  • E-commerce: Ensures acquisition costs don’t cut into profit margins.
  • Subscription Services: Balances cost against lifetime value.
  • Travel & Hospitality: Monitors the cost relative to bookings.

Real-World Example of CPA

A fitness subscription service spends $10,000 and gains 200 subscribers:

$10,000 / 200 = $50 per acquisition

Key Differences Between CPL and CPA

Aspect Cost per Acquisition (CPA) Cost per Lead (CPL)
Definition Cost to acquire a paying customer Cost to generate a potential customer’s contact info
Focus Conversion and actual sales Lead generation & initial interest
Measurement Point Final stage of the funnel Early stage of the funnel
Use Cases Immediate sales campaigns Building lead pipelines
Risk Level Higher Lower

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When to Use CPL vs. CPA?

Use CPL When:

  • Your business needs to nurture leads over time.
  • You have a long sales cycle (e.g., B2B).
  • You focus on email lists, retargeting, or content marketing.

Use CPA When:

  • Your goal is to generate direct revenue.
  • You rely on immediate purchases or sign-ups.
  • You need to measure profitability of ad spend.

For hybrid strategies, use both CPL and CPA to measure performance across the entire funnel.

How to Optimize CPA and CPL

1. Improve Landing Page Conversions

  • Use a clear and compelling CTA.
  • Optimize for mobile.
  • Run A/B tests.

2. Use Retargeting Campaigns

  • Retarget CPL leads to push them toward conversion.
  • Use personalized ads for returning visitors.

3. Optimize Ad Campaigns

  • Use relevant keywords in ads.
  • Adjust bidding strategies regularly.

4. Enhance Lead Nurturing

  • Use email automation.
  • Offer value-driven content.

5. Focus on High-Intent Keywords

  • Target "buy now," "sign up," etc.
  • Optimize SEO around conversion-focused keywords.

6. Reduce Customer Acquisition Costs (CAC)

  • Identify your highest ROI channels.
  • Refine audience targeting.

Final Thoughts

Choosing between CPA and CPL depends on your business goals.

  • If you prioritize long-term relationships → choose CPL.
  • If your goal is immediate revenue → focus on CPA.

Ideally, both metrics work together to maximize efficiency and revenue.

Next Steps

Monitoring both CPL and CPA helps you optimize marketing budgets, improve conversions, and increase profitability. Combining social media, content marketing, and CPA tracking maximizes your ROAS.

Want to improve your CPL and CPA? Contact Blazeo for expert strategies that deliver results!

LET'S CONNECT We'd love to hear from you! The sooner we chat, the sooner we can help your business grow.