What is the average cost per lead for B2B industries?

We often receive inquiries from prospects and clients about the average cost per lead for B2B industries. Unfortunately, there’s no simple answer to this question. The cost per lead, as well as the number of leads generated, relies on several important factors:

1. Marketing channels
2. Target markets
3. Target industry
4. Target audience
5. Business propositions

Let’s delve into each of these factors further.

1. Marketing Channels

When it comes to digital marketing, there are several channels to generate leads for your business, and the cost per lead varies by each channel:

• Content marketing
• Digital advertising
• Email marketing

Content marketing is likened to a marathon; it requires ongoing SEO efforts to create content, whether it be website articles or video content, that is valuable for your prospects.

Digital advertising, in contrast, is like a sprint, offering quick results that any business can utilise immediately. This is the primary focus of this article.

Email marketing, on the other hand, is more effective for nurturing leads after they have been captured, as some prospects might not be ready to purchase after the initial contact.

Google Advertising

The average cost per lead (CPL) for Google ads typically ranges from $20 to $200, depending on the industry and keyword competition. Highly competitive sectors like finance and legal services can experience CPLs that exceed $100 per lead.

Bear in mind that Google ads are not just limited to search ads; Demand Gen (display advertising) and Performance Max (a combination of search and display advertising) can also be employed.

Social Media Advertising

The average CPL for Facebook ads is around $22, with differences across industries. For example, real estate might have a lower CPL around $15, while legal services can reach up to $200.

Aside from Facebook, other social media platforms like Instagram (typically part of Meta advertising), LinkedIn and TikTok can be used depending on the target markets.

2. Target Markets

The average cost per lead (CPL) in B2B digital marketing, especially for Google and social media ads, can differ greatly by country. The CPL estimates mentioned earlier, such as $20 to $200 for Google ads and about $22 for Facebook ads, are generally reflective of trends in developed markets like the United States and Western Europe.

In places like Australia and the UK, CPLs can be higher, especially in competitive fields like finance and technology. Meanwhile, countries in South America and parts of Asia often have lower CPLs due to less competition and cheaper advertising costs overall.

While the average CPL figures provide a basic idea, they are shaped by local market conditions. Countries with strong economies and high competition often see higher costs per lead. On the other hand, emerging markets tend to have lower CPLs.

B2B Avg. Cost per Lead in Malaysia

As B2B digital marketing is part of our services over the past 10 years, we have run many lead generation campaigns for our B2B clients.

Therefore, we have sampled the average CPL by ad platform across all the B2B lead generation campaigns we managed in the last 12 months (Nov 2023 to Oct 2024).

• Google: RM30 CPL
• Facebook: RM15 CPL
• LinkedIn: RM100+ CPL
• TikTok: RM50 CPL

Again, these are just average benchmarks targeting Malaysia’s market. We will have a clearer idea of your target cost per lead once we start running the lead generation campaign for your business.

3. Target Industry

The cost per lead (CPL) for Google and social media ads can vary a lot between industries. Below is a summary of average CPLs for well-known industries using these advertising methods.

* While real estate and education are not typical B2B businesses, we have included them in the table above because these industries also focus on generating consumer leads.

These figures illustrate that social media platforms like Facebook can provide more affordable CPLs, whereas Google ads tend to be costlier due to greater competition, though they typically yield higher quality leads.

4. Target Audience

The target audience plays a crucial role in determining the cost per lead (CPL) in several ways. Here’s how audience characteristics affect CPL.

Size of Target Audience

Larger Audiences: When you target a broad audience, the CPL is generally lower. This happens because there are more potential leads available, allowing for efficient lead generation efforts. For example, sectors with widespread appeal often have lower CPLs.

Smaller Audiences: On the other hand, focusing on a very specific or niche target audience can lead to higher CPLs. This is because it is more challenging to reach these potential leads and there’s more competition for their attention. For instance, aiming at top clients in specialized fields like finance or legal services can raise costs due to limited options.

Quality of Target Audience

High-Quality Leads: A well-defined and quality target audience — where leads are more likely to convert — can result in a higher CPL. Although the initial cost might be higher, these leads often provide better returns on investment (ROI) because they are more likely to convert. For example, marketing campaigns targeting decision-makers in large businesses usually have higher CPLs but also greater conversion potential.

Low-Quality Leads: In contrast, targeting a wider or less relevant audience might lead to lower CPLs, but these leads often have lower conversion rates. This can result in unnecessary spending if those leads do not turn into customers.

5. Business Propositions

Businesses often overlook certain areas and rely solely on agencies to optimize their ad campaigns. Instead, they should focus on improving the following aspects before running lead generation campaigns.

Refine Value Proposition

Clear Messaging: Make sure the value proposition is easy to understand. It should quickly communicate how the product or service addresses a specific need or problem for the audience.

Unique Selling Points (USPs): Highlight what sets the business apart from competitors, like better quality, competitive pricing, excellent customer service, or unique features.

Optimize Offerings

Tailored Offers: Develop special offers for different audience segments, like limited-time discounts or package deals, to attract leads.

VIP Programs: Implement loyalty programs or special offers for returning customers to encourage them to stay and refer others.

Enhance Landing Pages

Alignment with Ads: Make sure landing pages match the messaging and visuals used in ads. Consistency helps build trust and improve conversion rates.

Strong Call-to-Action (CTA): Use clear and direct CTAs that prompt users to take the desired action, such as signing up for a newsletter, downloading a resource, or requesting a quote.

Streamlined Forms: Keep lead capture forms prominent and ask only for essential information to make them easy to complete.