# Which Is Better: PPC or PPL Marketing? | Capterra > Get started with PPC and PPL advertising to jumpstart your B2B organization's lead generation. Both methods are great for getting new leads. Which is right for you? Source: https://www.capterra.com/resources/which-is-better-ppc-or-ppl-advertising --- # Which Is Better: PPC or PPL Marketing? By Kelsie Anderson Kelsie Anderson Kelsie is a former Capterra analyst. [See bio & all articles](https://www.capterra.com/resources/author/kanderson/) Published September 17, 2014 7 min read Table of Contents - [The ins and outs of PPC and PPL advertising](#the-ins-and-outs-of-ppc-and-ppl-advertising) - [PPC advertising](#ppc-advertising) - [PPL advertising](#ppl-advertising) - [Go get those leads](#go-get-those-leads) - [What's working for you?](#whats-working-for-you) For small businesses, significant spending needs to be justifiable. This holds true even for necessary expenditures, such as marketing and advertising. With thousands of dollars at stake in your marketing budget each year, you need to choose advertising strategies and channels that result in a positive ROI. One of the essential questions in modern advertising is whether to use pay-per-click (PPC) or pay-per-lead (PPL) advertising to generate new business. I'll make the decision easy for you: You can use both methods...at the same time! You're welcome, marketers! No more late night, nail-biting decisions over whether to drop one lead generation program in favor of the other. In fact, many software vendors who work with G2 Digital Markets (comprising [Capterra](https://www.capterra.com/), [GetApp](https://www.getapp.com/), and [Software Advice](https://www.softwareadvice.com/)) can—and do—participate in both PPL and PPC programs. And they often conduct multiple ongoing campaigns in each. However, there are aspects of both methods that software vendors need to be aware of before running full-fledged campaigns. In this piece, I'll discuss the basics of each advertising program, as well as a few prerequisites for getting started. ## The ins and outs of PPC and PPL advertising There are different requirements and benefits that accompany PPC and PPL advertising. Let's take a look at each so you can make sure you have everything you need before starting your campaigns. ## PPC advertising One of the biggest selling points for PPC is that a vendor can start a campaign and generate leads in just a few minutes. But, though the speed of lead acquisition is appealing, your website has to be able to convert that traffic at a similarly high rate. **If your site has no calls to action or online forms, don't bother starting PPC until you've implemented those two elements.** You should also make sure you have the following key elements set up to ensure that your PPC campaign is successful: - An optimized website and/or dedicated landing pages - Conversion and referral tracking tools - A clearly defined target market - A clearly defined sales process ### Creating optimized websites and landing pages If you don't know how to create an online form or don't have a web designer to help make the changes you need, there are tons of [tools](https://www.capterra.com/p/145639/Unbounce/) for website and [landing page optimization](https://www.capterra.com/resources/ppc-landing-page-mistakes/) to get you started. It's not difficult to develop a moderately optimized page, but it's an _absolute must_ before starting a PPC campaign. Otherwise, you're not giving your prospects a place to leave their information so your sales team can get back to them to pitch your product. ### Tracking your campaigns PPC tracking is relatively easy with the right tools. Unfortunately, many vendors aren't tracking paid traffic, so they don't know if the money they're pumping into campaigns is worth it. You can track your campaigns through a free tool, such as Google Analytics, or via any of the hundreds of [web analytics](https://www.capterra.com/web-analytics-software/) or [campaign tracking](https://www.capterra.com/campaign-management-software/) tools on the market. ### Understanding your target market When you start a new PPC campaign, it's important to know your market. Vendors often target keywords that are too expensive or broad for their target audience. PPC is a great tool for reaching niche markets, but only if you limit your campaign to reach those particular people. You should also refrain from reaching for expensive clicks outside your primary target market—or outside your budget. ### Creating a clearly defined sales process Accumulating leads is all well and good, but you have to sell to those leads to be successful. If you're conducting a PPC advertising campaign through the right channels, you could have hundreds of leads coming your way. But if you don't have a defined sales process—assigning leads to the right person or team, qualifying them, and contacting them immediately—then you're wasting your money. Equipping your team with [a CRM](https://www.capterra.com/customer-relationship-management-software/) or similar tool can go a long way toward organizing your pipeline and gathering the leads from your successful ad campaigns in one place. ## PPL advertising Pay per lead is a great choice for the vast majority of software companies. By operating through PPL channels, software companies subscribe to a service and, in one way or another, purchase individual leads. The volume of leads you'll receive will be lower—and their price will be higher—than a PPC campaign because each lead has been pre-qualified by a third party, knocking out some of the legwork for your sales team. As with PPC, there are a few things you should have in place before starting your PPL campaign: - The price you're willing to pay (on average) for a lead - A functional sales team ### What your organization should pay per lead While it's exciting to think of all the information you'll acquire from your PPL leads, you're still operating on a marketing or advertising budget. That means you have to figure out which leads make financial sense for you. One general rule of thumb to determine your average cost per lead is to consider the amount you'd be willing to spend to acquire a customer. As a model, imagine that the lifetime value of your customer is around $10,000. To gain another $10,000 customer, you might be willing to spend around 10% of the total lifetime value ($1,000). That $1,000 is the cost per acquisition (CPA). The next part of this formula is dependent on your sales team. If they typically close 10% of all incoming leads (close rate), multiply that by your CPA (10% x $1,000). The resulting $100 is an average cost per lead (CPL) estimate. _Multiply your acceptable CPA by your close rate to find your estimated average cost per lead_ When evaluating the effectiveness of PPL programs for your company, keep these numbers in mind to decide whether you're spending too much on your leads. And remember that these metrics all fluctuate over time. Monitor your leads to see if your average CPL is holding true and your close rates are within the norm. If the leads seem too expensive, work with your sales team to increase your close rates, review your pricing structure, or drop the PPL source. ### Set your sales team up for success The logic behind a sales team for PPL is the same as the logic behind PPC: If no one is following up with your leads, they're worthless to your company. While the volume of leads from PPL will be more manageable for a smaller sales team than the leads coming in from PPC campaigns, your sales team still needs to be on top of their [follow-up game](https://www.capterra.com/resources/b2b-lead-follow-up-process/). And equipping your team with [a CRM](https://www.capterra.com/customer-relationship-management-software/) is never a bad idea. ## Go get those leads Whether PPC or PPL advertising is better is totally up to your company, product, and sales team. Both ad models have unique benefits and requirements. As you saw above, the best part is that you don't _have_ to choose between the two. Running both types of campaigns is completely doable. And it's pretty much the norm with many of our customers at G2 Digital Markets. If you're a software vendor looking to get more leads, there are many viable channels out there, including ours. You can set up [PPC](https://www.capterra.com/vendors/) and [PPL](https://www.softwareadvice.com/vendors/) advertising campaigns with us if you're ready to get started. ## What's working for you? What types of advertising campaigns have worked out well for your B2B company? What strategies have you used to make your PPC or PPL campaigns more successful? Let us know in the comments below, or give me a shout on Twitter [@CapterraKelsie](https://twitter.com/CapterraKelsie?lang=en). **More resources:** - Common mistakes to avoid with your PPC campaign - Some suggestions for tech tools to improve your sales process - Suggestions for [calculating your bid](https://www.capterra.com/resources/bid-optimization-for-international-ppc/) to run a campaign with a positive ROI * * * Looking for Lead Management software?Check out Capterra's list of the [best Lead Management software](https://www.capterra.com/lead-management-software/) solutions. ### Was this article helpful? * * * ## About the Author [### Kelsie Anderson](https://www.capterra.com/resources/author/kanderson/) Kelsie is a former Capterra analyst. ### RELATED READING - [AI in Talent Management Software: The Bridge Between Recruiting and Retention](https://www.capterra.com/resources/ai-talent-management-software/) - [Switching Accounting Software: Common Risks to Avoid in 2026](https://www.capterra.com/resources/switching-accounting-software-problems-risks/) - [Why Projects Fail, and What Actually Helps Teams Fix Them](https://www.capterra.com/resources/4-steps-to-completely-recover-from-project-failure/) - [Checklist for SMBs: How to Choose the Right Customer Service Help Desk Software for Your Business Size](https://www.capterra.com/resources/choosing-customer-support-help-desk-software/) - [E‑Filing Taxes as a Small Business: Where Software Adds Value and When It’s Necessary](https://www.capterra.com/resources/efile-tax-software-small-business-guidelines/) - [How To Choose a Manufacturing Software With Confidence: Insights From Real Buyers](https://www.capterra.com/resources/manufacturing-software-buyer-insights-report/) - [What is CRM Software and What Does a CRM System Do?](https://www.capterra.com/resources/what-is-crm-software/) - [Payroll Software vs. HR Software: What’s the Difference](https://www.capterra.com/resources/payroll-vs-hr-software-difference/) - [How AI Scheduling Software Helps Restaurants Reduce Overtime and Boost Staff Satisfaction](https://www.capterra.com/resources/ai-employee-scheduling-software-for-restaurants/)