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 revenue. While a ‘good’ CPL varies massively, we’ve analysed data across several key industries to give you a realistic benchmark for the current market.
It’s important to remember CPL isn’t just ad spend divided by leads. It *must* include all associated costs – agency fees, software subscriptions, internal staff time dedicated to campaign management, and even content creation. Failing to account for these hidden costs will give you a seriously skewed picture.
Here’s a breakdown of typical CPL ranges we’re seeing across different sectors:
- Financial Services (Mortgage Brokers, Financial Planners): $80 – $250. This sector is highly competitive and often relies on qualified leads, driving up costs.
- Trades (Plumbing, Electrical, HVAC): $40 – $120. Local service ads and targeted Facebook campaigns perform well, keeping CPL relatively manageable.
- Retail (Online & Brick-and-Mortar): $20 – $80. Dependent on product margin and competition. Expect higher CPLs for luxury goods.
- Healthcare (Dentists, Physiotherapists): $60 – $180. Compliance requirements and a focus on building trust contribute to higher costs.
- Business Services (Marketing, IT Support): $50 – $150. Often requires longer sales cycles and more nurturing, impacting CPL.
These figures are averages, of course. A highly optimised Google Ads campaign targeting a niche keyword will always deliver a lower CPL than a broad Facebook campaign. We’re also seeing a trend towards increased CPLs as competition intensifies and privacy regulations evolve, making targeted advertising more challenging. Looking ahead to 2026, expect continued upward pressure on CPLs unless you invest in sophisticated attribution modelling and first-party data strategies.
The key takeaway? Don’t just focus on generating leads; focus on generating *profitable* leads. Calculate your true CPL, track your conversion rates at each stage of the funnel, and continually refine your campaigns to maximise your return on investment. If you’re unsure where to start, a comprehensive marketing audit is a great first step to identify areas for improvement and unlock hidden growth potential.
