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Jargon buster

Marketing jargon, in plain English

Every industry hides behind acronyms. Here are the marketing ones that matter, explained the way we'd explain them to a friend. Search for the term you're stuck on.

CAC

Customer acquisition cost

What it costs, all in, to win one new customer. Spend divided by customers gained.

LTV

Lifetime value

The total profit you expect from a customer over the whole relationship. Healthy marketing keeps LTV well above CAC.

CTR

Click-through rate

The share of people who saw something and clicked it. Clicks divided by impressions.

CPC

Cost per click

How much you pay each time someone clicks your ad.

CPM

Cost per mille

The cost per 1,000 times your ad is shown. A measure of awareness, not clicks.

CPA / CPL

Cost per acquisition / lead

What you pay for one conversion, a sale (CPA) or an enquiry (CPL).

ROAS

Return on ad spend

Revenue earned for every pound spent on ads. 4:1 means £4 back for every £1 in.

Funnel

TOFU / MOFU / BOFU

The journey from stranger to customer: top (awareness), middle (consideration), bottom (decision).

Conversion rate

The percentage of visitors who do the thing you want, buy, enquire or sign up.

Bounce rate

The share of visitors who leave without interacting. High isn't always bad, context matters.

Impressions vs reach

Impressions count every time content is shown; reach counts the unique people who saw it.

Organic vs paid

Organic is traffic you earn for free through content and SEO; paid is traffic you buy through ads.

Retargeting

Remarketing

Showing ads to people who already visited you, nudging warm prospects back.

A/B test

Split test

Running two versions to see which performs better, then keeping the winner.

USP

Unique selling proposition

The honest reason a customer should choose you over the alternative.

Positioning

The space you own in a customer's mind, who you're for and what you stand for.

Lead magnet

Something useful you give away (a guide, tool or template) in exchange for contact details.

Nurture

Lead nurturing

Building trust with a prospect over time, usually by email, until they're ready to buy.

Attribution

Working out which marketing touchpoints deserve credit for a sale.

KPI

Key performance indicator

The handful of numbers that actually tell you if marketing is working.

Further reading

Trusted sources

Want to go deeper than the definitions? These are the references we rate.

Prefer to talk it through? Explore what we do or browse our free resources.

When you're ready

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