As we move further into 2024, the digital landscape across Australia and New Zealand is evolving quickly. Businesses are finding new ways to connect with customers, but when it comes to buying leads, it might be time for a rethink. Fixed pricing has worked well for years—no doubt about that. But with rising competition and fluctuating ad costs, you might start wondering: Is there a more flexible option?

This is where Dynamic Cost Per Lead (dCPL) comes in. Instead of locking in one price, dCPL adjusts lead prices based on real-time advertising costs. If the cost of ads drops, so do your lead prices. And when competition for ad space spikes—say during Black Friday or Cyber Monday—dCPL keeps you in the game by adjusting prices accordingly while still securing the volume you need.

Table of Contents:

1. What is Dynamic Cost Per Lead (dCPL)?
2. Digital Ad Spend: Australia and New Zealand on the Rise
3. Rising Customer Acquisition Costs: Pressure’s Building
4. What dCPL Is (and What It Isn’t)
5. A Real-World Example: How dCPL Helps Mortgage Brokers
6. Is dCPL Right for You?
7. Key Questions to Ask
8. Conclusion: Is It Time to Consider dCPL?

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What is Dynamic Cost Per Lead (dCPL)?

Dynamic Cost Per Lead (dCPL) is a flexible pricing model that adjusts the cost of leads in real-time, based on current advertising costs. Rather than paying a fixed price for leads, businesses using dCPL can take advantage of lower costs when ad prices drop and still maintain lead flow during competitive times when prices rise.

dCPL offers flexibility, helping businesses like yours keep up with shifting market conditions while staying competitive during peak demand periods.

Digital Ad Spend: Australia and New Zealand on the Rise

Australia’s digital ad spend continues to grow. In 2023, it reached AU$14.7 billion, a 3.7% increase driven by industries like retail, finance, and technology. Mobile and video advertising led the charge (source). By 2024, projections suggest digital ad spend will climb to AU$16 billion, with sectors like automotive joining the fray.

New Zealand’s digital ad market is also on a strong upward trajectory, with growth projected to hit NZ$2.3 billion in 2024—a 7.5% year-on-year rise. Platforms like Google and Meta continue to see significant investment as businesses shift towards digital-first strategies (source).

With these numbers rising, competition for leads is growing. This makes you think—is a fixed lead price enough to stay competitive?

Rising Customer Acquisition Costs: Pressure’s Building

Customer Acquisition Costs (CAC) are rising, particularly in sectors like finance. In Australia’s financial services industry, CAC is forecast to rise to AU$720 per customer by the end of 2024, up from AU$644 in 2023 (source). For businesses in high-demand areas like mortgages or insurance, rising costs make lead acquisition more challenging.

This is where dCPL can help. When ad costs spike during busy periods like Black Friday/Cyber Monday (or BFCM), dCPL adjusts the price of leads, ensuring a steady supply. When the market cools and ad costs drop, you pay less for leads, helping keep your lead flow consistent without breaking the bank.

What dCPL Is (and What It Isn’t)

dCPL isn’t about replacing fixed pricing—it’s about adding flexibility. When ad costs rise, lead prices adjust accordingly. But when ad costs fall, you benefit by paying less.

How dCPL Works:

1. Lead prices reflect advertising costs: When ad space is cheap, you get discounted leads. When demand rises, prices increase, but you still get the volume you need.
2. Continuous adjustments: Lead prices change to match the real-time cost of advertising, ensuring you’re never overpaying.
3. Alignment with your goals: Both you and your lead generation partner work towards the same goal—maintaining a steady lead flow while adapting to market conditions.

A Real-World Example: How dCPL Helps Mortgage Brokers

During Black Friday or Cyber Monday, competition for ad space is fierce, whether you're selling mortgage products or other high-demand items. Fixed pricing might leave you overspending or missing out on leads. With dCPL, prices rise to reflect the increased cost of advertising, helping you secure leads during peak times.

After the rush, when ad costs decrease, dCPL lowers lead prices, so you’re not stuck paying premium rates during off-peak times. This flexibility ensures a steady lead flow throughout the year without constant budget adjustments.

Is dCPL Right for You?

At Leadify, we’ve seen how dCPL benefits both parties. It’s not about saying fixed pricing is outdated—it works for many businesses. But if your ad costs fluctuate, dCPL provides the flexibility to align your spending with market conditions. It helps you stay competitive when it matters most and saves money when conditions are less intense.

However, dCPL isn’t for everyone. If predictability in costs rather than volume and consistent budgeting are your top priorities, sticking with fixed pricing might be better. But if you’re ready to adjust your strategy based on real-time data, dCPL offers a level of flexibility that could give you an edge.

Key Questions to Ask:

1. Do ad costs impact your lead volume?

If fluctuating ad costs are affecting your lead generator’s ability to maintain lead volume, Dynamic Cost Per Lead (dCPL) can help. With dCPL, lead prices adjust in real-time, ensuring you get a steady flow of leads, even when ad costs rise. This flexibility helps keep your pipeline full without breaking your budget.

2. Can your strategy adjust quickly?

With dCPL, your lead supply remains consistent, even as ad costs shift. If you need continuous leads for your sales team, dCPL ensures you can adapt quickly, maintaining revenue and lead volume without requiring constant budget changes.

3. Need steady leads during peak times?

During peak demand, ad costs often rise. dCPL allows you to continue receiving the leads you need, without overspending. By dynamically adjusting pricing based on ad costs, you maintain consistent lead flow and hit your sales targets, even during high-competition periods.

Is It Time to Consider dCPL?

Digital advertising is not slowing down, and neither is the competition for leads. Dynamic lead pricing (dCPL) adds flexibility, helping you adjust to shifting market conditions. While fixed pricing offers predictability, dCPL allows you to scale with ad costs without sacrificing lead flow.

Whether you stick with fixed pricing, embrace dCPL, or opt for a hybrid approach, the key is to ensure your lead-buying strategy remains flexible in 2024. Want to explore how dCPL could benefit your business or discuss lead generation strategies? Reach out to us at Leadify, where we’ve helped hundreds of businesses across Australia grow and thrive.

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