Google Ads explained · CPC · CPL

Google Ads: from click to enquiry, with clear definitions

Google Ads lets businesses show ads in search and across other Google and network placements. The useful question is which customer need an ad can address and how much it costs to create a valid business opportunity.

ClickA visit from an advertisement
EnquiryA measurable contact
CustomerA confirmed sale

Quick answer

What is contextual advertising?

It is advertising connected to context, such as a person's search or the content they view. Google Ads offers search campaigns and other formats with different selection and payment models. A click is not an enquiry, and an enquiry is not yet a sale.

Three different outcomes

CPC

The cost of a visit

CPC means cost per click. It measures traffic cost rather than the cost of winning a customer. Compare relevant visits and avoid judging a campaign solely by its entry price.

CPL

The cost of an enquiry

CPL is advertising spend divided by counted leads. Define what counts before comparing, remove duplicates and distinguish valid enquiries from actions without commercial intent.

Acquisition

The cost of winning a customer

Acquisition cost requires sales data and a definition of included expenses. If you include fees or production, apply the same rule across periods. Contribution margin helps assess whether that cost is sustainable.

Interactive plan

Which result do you want to measure?

Choose a goal to connect its metric with the business decision.

Measure relevant traffic

Review searches, landing pages and behaviour. More clicks may increase your sample, but they do not yet prove a business benefit.

Interactive plan

Estimate your first test budget

Editable example. Enter your own inputs: this is not a market forecast or a campaign result.

Estimated clicks1 333
Estimated enquiries67
Cost per enquiry30 €

Clicks = budget ÷ CPC. Enquiries = clicks × conversion rate. CPL = CPC ÷ conversion rate. Excludes fees, taxes and differences between channels.

Before launch

Before comparing cost per lead

Items checked0 / 6

Our approach

How to interpret an initial budget

1

Define

Choose an offer and a useful action. Separate traffic metrics from business outcomes.

2

Calculate

Use observed CPC and conversion rates when available. Try several assumptions and record the source of each input.

3

Compare

Compare estimates with actual campaign data. Review lead quality and sales before increasing spend.

Frequently asked questions

Frequently asked questions

Is there a standard price for a lead?

No. It changes with the service, competition, landing page and definition of an enquiry. The calculator uses your inputs; it does not provide a market price.

How is CPL calculated?

Divide advertising spend by leads. You can also estimate it by dividing CPC by conversion rate as a decimal. A €2 CPC and 5% conversion give an example CPL of €40.

Does a higher bid guarantee the top position?

No. Eligibility and position depend on Ad Rank and several auction factors, including bid, quality and context.

Does Google Ads directly improve organic rankings?

Ads and organic results are separate. Buying advertising does not buy an organic position. Both can lead to a useful page, but need separate evaluation.

Prepared by Contextera · Reviewed on 10 October 2026

Official documentation

Explore further

Turn your metrics into a useful decision

Share your offer and available data. We will review the enquiry that matters and how to check whether advertising creates real opportunities.