Cost per lead is a symptom. It rises for a handful of specific reasons, and cutting the budget, which is the usual first move, addresses none of them.
The account counts pageviews, or every form submission including spam. The algorithm then gets very good at producing the wrong thing.
No negative keyword work for months. You are buying clicks from people who were never going to buy.
The click cost is fine; the page converts at half what it should. Ad platforms cannot fix this and will happily keep charging you.
Budget split across everything rather than concentrated where the margin is. Common in accounts built once and left.
Smart bidding running without enough conversion data to learn from, which produces expensive confident nonsense.
Sometimes the market genuinely got more expensive. Worth knowing, because then the answer is margin and conversion rate, not bidding.
We work through the causes in order of what they cost you, and we start with measurement because everything downstream depends on it.
What the account calls a conversion, and whether that matches a real enquiry. This is wrong more often than not.
Search terms, negatives, placements and audiences, so you stop paying for clicks that were never going to convert.
Cost per lead is click cost divided by conversion rate. Half the equation lives on your site, not in the account.
Spend moved toward what produces qualified leads at a cost your margin can carry, and away from what does not.
Rarely the answer. Cutting spend usually raises cost per lead rather than lowering it, because the account loses the volume it needs to optimise.
It depends entirely on which cause you have. Fixing conversion tracking can change the number dramatically; auction pressure barely moves. We will tell you which after looking.
Tracking and negative keyword fixes show within weeks. Landing page and structural work takes six to eight weeks to read properly.
Then the account is optimising toward a low-value event, and the fix is to feed lead quality back from your CRM so it learns what a good one looks like.
Still deciding? Send us the question and we will answer it straight, no pitch attached.
Ask Us AnythingWe will review the account and tell you which of these is costing you the most.
Performance marketing that answers for revenue. Serving clients across the UK and UAE.