Understanding your cost per lead (CPL) is absolutely fundamental to profitable growth. Too many Australian small and medium enterprises operate ‘in the dark’ on this metric, making it hard to justify marketing spend or accurately forecast returns. It’s not a ‘one size fits all’ number; CPL varies dramatically by industry, competition, and the lead generation tactics you employ.
We’ve analysed data across several key sectors to give you a realistic range for 2025. Keep in mind these are averages, and your results will depend on your specific business and targeting. We’re seeing continued increases in ad costs, so proactive optimisation is more important than ever.
- Professional Services (Accounting, Legal): Expect a CPL between $80 – $200. These industries are highly competitive online, and leads often require more nurturing. Content marketing and LinkedIn advertising tend to perform well, but are slower burn.
- Trades (Plumbing, Electrical): CPL typically falls between $40 – $100. Local search (Google My Business optimisation) and targeted Facebook advertising are effective. Competition is increasing, so strong online reviews are vital.
- Retail (Fashion, Homewares): CPL can range from $20 – $60, but this is heavily influenced by product margin and customer lifetime value. Social media advertising (Instagram, TikTok) and Google Shopping are key channels.
- Healthcare (Dentistry, Physiotherapy): CPL is generally $60 – $150. Compliance requirements add complexity. Google Ads and targeted Facebook campaigns focusing on specific treatments are common.
These figures represent *qualified* leads – people genuinely interested in your services, not just website visitors. A low CPL isn’t always good; a $20 lead that never converts is worthless. Focus on lead quality alongside cost. We’re also observing a trend towards longer sales cycles, meaning you need to factor in the cost of nurturing leads over time.
To truly understand your CPL, meticulously track your marketing spend and lead sources. Implement proper attribution modelling to see which channels deliver the best return. If your CPL is significantly higher than these benchmarks, it’s time to review your targeting, ad creative, and landing page optimisation. Don’t hesitate to seek expert advice to refine your strategy and maximise your marketing investment.
