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Marketing glossary

A comprehensive guide to the words of marketing: every term, metric and acronym an owner-led business meets, explained in plain English, each with the answer first and a worked example in dollars.

119 terms. Last updated October 2026.

A

A/B testAn A/B test shows two versions of one thing, such as an ad, a landing page or an email subject line, to two randomly split groups at the same time, and compares how many in each group took the action you wanted.Read the entry Ad assetsAd assets, called ad extensions until 2022, are the extra pieces Google Ads can attach to a search ad, such as sitelinks, callouts, a phone number, a location, prices or images, making the ad larger and giving people more reasons to click.Read the entry Ad creative and creative fatigueAd creative is the ad people see, the image or video, the headline, the text and the button, as distinct from the audience it is shown to and the budget behind it, and creative fatigue is the drop in results that comes when the same people have seen the same creative too many times.Read the entry Ad RankAd Rank is the value Google Ads calculates for your ad in every auction, from your bid, the quality of your ad and landing page, the search's context and other factors, to decide whether it shows, where, and at what price.Read the entry AI agentAn AI agent is software built on a language model that works towards a goal you set by choosing its own steps, using tools such as a web browser, email or a payment account, and checking the results until it finishes or gets stuck.Read the entry AI CMOAn AI CMO is software that does a chief marketing officer's thinking for a business too small to employ one: it sets the goal, chooses the strategy, writes the plan and reviews the numbers each week, by talking with the owner, who still does the work.Read the entry AI constitutionAn AI constitution is a published document setting out the principles and priorities an AI system is meant to follow, such as honesty, safety and whose interests come first, used to guide how the AI is trained or how it behaves.Read the entry AI guardrailsAI guardrails are the rules and technical limits built into an AI product that control what it can see, say and do, such as blocking certain topics, checking answers before they are shown, or removing the ability to make changes at all.Read the entry AI hallucinationAn AI hallucination is an answer from an AI model that sounds confident and plausible but is false or invented, such as a made-up statistic, a quote nobody said, a source that does not exist or a setting the software does not have.Read the entry AI marketingAI marketing is using AI software to plan, write, run or measure marketing, and the phrase covers everything from a chatbot drafting a post to a system that reads your ad accounts and tells you what to change.Read the entry AI marketing teamAn AI marketing team is a set of marketing jobs (strategy, content, ads and measurement) done by AI specialists that all work towards one business goal, with the owner in charge and making every change.Read the entry AI modelAn AI model is the trained engine, stored as billions of learned numbers, that turns input into output, while an AI app is the product built around one or more models, adding instructions, memory, tools, data connections and a screen to use it on.Read the entry Answer engine optimisation (AEO)Answer engine optimisation (AEO) is writing and structuring your website so that ChatGPT, Perplexity and Google's AI answers quote it when someone asks a question; it is also called generative engine optimisation (GEO).Read the entry APIAn API, or application programming interface, is a set of rules that lets one piece of software request data or actions from another, such as an app reading your Google Ads campaigns, without anyone logging in and copying figures by hand.Read the entry Average order value (AOV)Average order value (AOV) is the revenue from a period divided by the number of orders in it, so $36,400 from 520 orders is an AOV of $70; for a service business the same figure is the average job or invoice.Read the entry

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C

call to action (CTA)A call to action, or CTA, is the instruction in an ad, web page, email or post that tells the reader exactly what to do next, such as Book now, Get a quote or Call us, usually as a button or a short line.Read the entry Chatbot, copilot, agent or teamA chatbot answers what you type, a copilot works beside you on a task, an agent acts on its own, and an AI marketing team is specialists sharing one plan; the difference that matters to an owner is who sees the screen, who decides, and who clicks.Read the entry Churn rateChurn rate is the share of the customers you had at the start of a period who stopped buying or cancelled during it, so losing 6 of 120 monthly customers in July is a churn rate of 5 percent for that month.Read the entry Click-through rate (CTR)Click-through rate (CTR) is the share of people who saw your ad or search listing and clicked it, worked out as clicks divided by impressions: 30 clicks from 1,000 views is a CTR of 3 percent.Read the entry Close rateClose rate, also called the quote-to-job rate, is the share of quotes you send that turn into paid work, so 8 kitchens won from 40 quotes is a close rate of 20 percent; some businesses measure it from first enquiry instead.Read the entry Computer use AIComputer use AI is an AI that operates a computer the way a person does, moving the mouse, typing and clicking through software to finish a task on its own, which is a different thing from an AI that sees your screen and tells you what to do.Read the entry Consent mode and cookiesConsent mode is the Google setting that tells its tags whether a visitor agreed to cookies, so the tags measure what they are allowed to and Google models the rest; it is one of several reasons the conversions an ad platform reports are now fewer than the sales a business makes.Read the entry content marketingContent marketing is publishing useful material, such as articles, videos, guides or emails, that answers the questions your customers have, so that they find you, trust you and come back when they are ready to buy.Read the entry context windowA context window is the maximum amount of text, counted in tokens, that an AI model can take in and consider in a single request, including its instructions, the conversation so far, any attached documents and the reply it is writing.Read the entry Contribution marginContribution margin is the price of a sale minus every cost that rises with that one sale, such as stock, commissions, card fees and packaging, which leaves the amount each extra sale adds towards rent, wages and profit.Read the entry ConversionA conversion is an action that you have told an ad account or analytics tool to count as a success, such as a purchase, a booking, a form or a call, so it counts only what was set up and nothing else.Read the entry Conversion rateConversion rate is the share of visitors (or clicks) that did the thing you wanted, such as booking, buying, calling or filling in the form: 20 bookings from 400 clicks is 5 percent.Read the entry Conversion rates (the family)The conversion rates are a family of percentages, each dividing the people who took one step by the people at the step before, such as clicks that became leads or quotes that became jobs, so each one tests a different part of the business.Read the entry Conversion trackingConversion tracking is the set-up that records when someone who clicked your ad does something you value, such as sending a form, calling or buying, and reports it back to Google Ads so you can see which ads and keywords produce customers.Read the entry Core Web VitalsCore Web Vitals are three measurements Google uses to judge how a web page feels to real visitors: Largest Contentful Paint for loading, Interaction to Next Paint for responsiveness, and Cumulative Layout Shift for visual stability.Read the entry Cost per acquisition (CPA)Cost per acquisition (CPA) is the ad spend on a campaign divided by the conversions that ad account recorded, so it measures what Google or Meta charged for each action you told it to count, such as a booking, a form or a purchase.Read the entry Cost per click (CPC)Cost per click (CPC) is the price you paid, on average, each time someone clicked your ad, worked out as ad spend divided by clicks; in Google Ads you set the most you will pay and usually pay less.Read the entry Cost per lead (CPL)Cost per lead (CPL) is what a campaign spent divided by the number of enquiries it produced, such as forms, calls and messages, so $2,100 that brings in 35 enquiries is a cost per lead of $60.Read the entry CPM (cost per thousand impressions)CPM, cost per thousand impressions, is what you paid for every 1,000 times your ad was shown, worked out as spend divided by impressions and multiplied by 1,000; the M is the Roman numeral for a thousand.Read the entry Crawling and indexingCrawling is Google's software visiting and downloading the pages of your website, and indexing is Google analysing those pages and storing them in its index; only an indexed page can appear in Google's search results.Read the entry Custom audienceA custom audience is a group of people an ad platform builds from something you already have, such as a customer list, your website visitors or the people who engaged with your page, so you can show them ads, exclude them from ads, or use them as the source for a lookalike.Read the entry Customer acquisition cost (CAC)Customer acquisition cost (CAC) is the total you spent to win new customers in a period, including ads, agency fees, sales time and printing, divided by the number of new customers you won in that period.Read the entry Customer lifetime value (LTV)Customer lifetime value is what one customer is worth to you over the whole time they keep buying from you, not only their first sale: the number that tells you how much you can afford to spend to win one.Read the entry

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Email deliverabilityEmail deliverability is whether the emails you send reach the inbox rather than the spam folder or nowhere, and it rests on three records that prove you are who you say you are (SPF, DKIM and DMARC), a low complaint rate, and a list of people who asked to hear from you.Read the entry Email flow (automation)An email flow, called an automation or a customer journey in some tools, is a sequence of emails that sends itself when a trigger happens, such as a sign-up, a first purchase or a cart left behind, so the right message reaches each person at the right moment without anyone pressing send.Read the entry Email open rate and click rateEmail open rate is the share of delivered emails that were opened and click rate is the share that had a link clicked; since Apple Mail began pre-loading emails in 2021 the open rate counts opens that never happened, so the click rate is the one to trust.Read the entry Email segmentationEmail segmentation is dividing your list into groups by something you know about the people in them, such as what they bought, when they last bought or whether they have clicked recently, and sending each group an email written for it instead of one email to everyone.Read the entry embeddingsAn embedding is a long list of numbers that an AI model produces to represent the meaning of a word, sentence or document, arranged so that texts with similar meanings get similar numbers and can be found by comparing them.Read the entry Engagement rate (GA4)Engagement rate in Google Analytics 4 is the share of sessions that were engaged, meaning they lasted longer than 10 seconds, included a key event or viewed at least two pages, and GA4's bounce rate is the share that were not.Read the entry

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G

generative AIGenerative AI is artificial intelligence that creates new content, such as text, images, audio, video or code, in response to a request, by producing output that follows the patterns of the material it was trained on.Read the entry Google Business ProfileA Google Business Profile is the free listing, formerly called Google My Business, that shows your business on Google Search and Google Maps with its name, category, hours, phone number, website, photos and reviews, and that you claim and manage yourself.Read the entry Google reviewsGoogle reviews are the star ratings and written comments customers leave on a Google Business Profile; Google says their number and rating feed into local ranking, and for the person comparing three businesses they are often the deciding detail.Read the entry Google Shopping ads and Merchant CenterGoogle Shopping ads are ads that show a product's photo, price and shop name in Google results, built from product data you upload to Google Merchant Center, the free Google account that holds your product catalogue and checks it against Google's rules.Read the entry Google Tag ManagerGoogle Tag Manager is a free Google tool that holds all the tracking code on your website, such as the Google tag, the Meta Pixel and conversion tags, in one container, so a tag can be added or changed in Tag Manager without anyone editing the website itself.Read the entry Gross marginGross margin is the share of revenue left after paying the direct cost of what you sold, such as stock, materials and the labour that does the job, written as a percentage: $60 left from a $100 sale is a 60 percent gross margin.Read the entry

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L

Landing pageA landing page is the web page a person arrives on after clicking an ad, email, post or search result; for an ad, the best one is built around the single thing the ad promised, with the next step on the first screen.Read the entry large language model (LLM)A large language model, or LLM, is an AI program trained on an enormous amount of written text to predict the next word in a passage, which is the ability behind ChatGPT, Gemini, Claude and most AI writing tools.Read the entry Last-click attributionLast-click attribution is a rule that gives 100 percent of the credit for a sale or lead to the last ad or link the customer clicked before converting, and none to anything they clicked or saw earlier.Read the entry latencyLatency is the delay between an action and its response; in a voice conversation with an AI, it is the time from the moment you stop speaking to the moment you hear the reply begin, usually measured in milliseconds.Read the entry LeadA lead is a person you can contact who has shown interest in buying what you sell, such as by filling in a form, calling or messaging, and who has not yet become a paying customer.Read the entry lead magnetA lead magnet is something useful a business offers free, such as a guide, checklist, calculator or sample, in return for a person's contact details and permission to follow up, so it can stay in touch with people not yet ready to buy.Read the entry Lead valueA lead is worth your average sale multiplied by the share of leads you close: a $650 job won from one enquiry in three makes each enquiry worth about $217 in revenue, and the margin version of that number is the most you can pay for a lead.Read the entry Local pack (map pack)The local pack, or map pack, is the block of a map and usually three business listings that Google shows near the top of the results for searches with local intent, such as "hairdresser near me", drawn from Google Business Profiles.Read the entry Lookalike audienceA lookalike audience is a group of people the ad platform chooses because they resemble a group you gave it, such as your customers or your website visitors, so your ads reach strangers who look, in the data, like the people who already buy from you.Read the entry LTV to CAC ratioThe LTV to CAC ratio is customer lifetime value divided by customer acquisition cost: a customer worth $1,080 in gross profit over their time with you, won for $360, gives a ratio of 3 to 1.Read the entry

M

machine learningMachine learning is a branch of AI in which software learns to make predictions or decisions from examples and data, rather than following rules a programmer wrote, and gets better at the task as it sees more examples.Read the entry Marketing agencyA marketing agency is a company you pay a monthly retainer to run some or all of your marketing for you, and the retainer usually buys hours of their staff rather than results.Read the entry Marketing attributionMarketing attribution is the set of rules that decides which ad, channel or campaign gets the credit for a sale or lead when the customer met the business more than once, through different ads and channels, before buying.Read the entry marketing automationMarketing automation is software that sends messages or takes marketing steps by itself when a set trigger happens, such as a welcome email after a sign-up or a reminder after an abandoned cart, so follow-up happens without anyone remembering to do it.Read the entry Marketing efficiency ratio (MER)Marketing efficiency ratio (MER), also called blended ROAS, is the total revenue of the business in a period divided by the total spent on marketing in that period, across every channel, regardless of which channel says it made the sale.Read the entry Marketing funnelA marketing funnel is the series of steps between someone first noticing your business and becoming a customer, with a count of the people at each step, so you can see where most of them drop away.Read the entry Marketing goalA marketing goal is one dated number, such as $40,000 a month in revenue by June, that every strategy and tactic in the plan has to answer to.Read the entry Marketing planA marketing plan is a written document that names the one result you are chasing, the two or three strategies that will get you there, and the tactics you will do each week, with dates and numbers; a list of marketing activity is not a plan.Read the entry Marketing ROIMarketing ROI, or return on investment, is the gross profit your marketing brought in minus what the marketing cost, divided by what it cost, so $3 of gross profit from $1 of marketing is an ROI of 200 percent.Read the entry Marketing strategyA marketing strategy is the route you choose to reach your marketing goal, such as winning more repeat orders from existing customers, and the tactics are the steps you take along that route.Read the entry Marketing tacticA marketing tactic is one thing you do, with a cost in dollars and in your own hours, that moves one number inside a strategy; a tactic without a strategy above it is activity.Read the entry Meta campaign structure (campaigns, ad sets and ads)In Meta Ads Manager a campaign holds the objective (what you want: sales, leads, traffic), each ad set inside it holds an audience, its placements, budget and schedule, and each ad inside an ad set holds one creative, so a change at one level applies to everything beneath it.Read the entry Meta Pixel and the Conversions APIThe Meta Pixel is a piece of code on your website that reports what visitors do after clicking a Facebook or Instagram ad, and the Conversions API sends the same events from your website server, so Meta still sees a purchase when a browser blocks the Pixel.Read the entry Multimodal modelA multimodal model is an AI model that takes in more than one kind of input, such as text, images and sound, and reasons across them, which is what lets an AI look at a screen and talk about what it sees.Read the entry

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R

Reach and frequency (Meta Ads)Reach is how many people saw your ad at least once, and frequency is how many times each of them saw it on average, which is impressions divided by reach; Meta reports all three, and reading impressions as people is the common mistake.Read the entry Repeat purchase rateRepeat purchase rate is the share of customers in a period who bought from you more than once in it, so 378 repeat buyers out of 1,400 customers over 12 months is a repeat purchase rate of 27 percent.Read the entry Responsive search adA responsive search ad is the standard Google search text ad, made from up to 15 headlines and 4 descriptions that you write, which Google combines differently for each search, testing the combinations to find the ones that get clicked.Read the entry Retargeting (remarketing)Retargeting, which Google calls remarketing, is showing ads to people who have already been to your website, used your app or bought from you, by keeping them in an audience the ad platform can recognise; it is cheap per sale because those people were already interested.Read the entry retrieval-augmented generation (RAG)Retrieval-augmented generation, or RAG, is a way of building AI tools in which the system first searches a set of documents for passages relevant to a question, then hands those passages to a language model to answer from.Read the entry ROAS (return on ad spend)ROAS, return on ad spend, is the revenue your ads produced divided by what the ads cost: a ROAS of 3 means $3 of sales came back for every $1 spent, before the cost of the product or anything else in the business.Read the entry

S

Schema markup (structured data)Schema markup, or structured data, is code added to a web page that labels its facts in a standard vocabulary from schema.org, such as a business's hours, a product's price or an event's date, so search engines can read them without guessing.Read the entry Search intentSearch intent is the goal behind a search, what the person wants to happen next, such as learning something, buying something, reaching a particular website or visiting a place; matching the page or ad to that goal decides whether a click becomes a customer.Read the entry Search terms reportThe search terms report in Google Ads lists the actual searches that triggered your ads and what each one cost, which can differ from the keywords you chose; it is where wasted spend shows up and where negative keywords come from.Read the entry Sessions and users (GA4)In Google Analytics 4, a session is a single visit to your site that ends after 30 minutes without activity, and a user is the browser or device that made the visit, so one person can count as several users and many sessions.Read the entry Smart BiddingSmart Bidding is the group of Google Ads bid strategies, Maximise conversions, Maximise conversion value, Target CPA and Target ROAS, that set a separate bid in every auction based on how likely that search is to lead to a conversion.Read the entry SMS marketingSMS marketing is sending marketing messages by text to customers and enquirers who have agreed to receive them, and in Australia the Spam Act 2003 requires consent, a sender who identifies the business, and a way to unsubscribe in every message.Read the entry Statistical significanceA test result is statistically significant when the difference between the versions is large enough, for the number of conversions counted, that it would rarely appear by chance if the versions performed the same; the usual bar is fewer than 1 time in 20.Read the entry

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