WTF is a CPL Anyway?
Written By: Jules Flesner
ROI, CTR, CAC, GEO… OMG
Traditional marketing jargon has spun a little out of control. But speaking this “alphabet soup” does help us figure out how to stretch your dollars further, outsmart your competitors, and sharpen your growth strategy.
IT, compliance, finance, and marketing departments may sound worlds apart, but your success actually depends on them speaking the same language. The acronyms list below connects the dots:
If your CRM isn’t tracking “How did you hear about us?” correctly, you can’t calculate your CPL (cost per lead).
If your SEO performance isn’t measured effectively, you won’t know when organic traffic is carrying the load, and miss the chance to scale back on paid ads during seasonal surges.
If your CTA (call to action) isn’t compelling, no one is clicking through to email/call/chat with your business and you’re losing income.
If your CRM isn’t integrating correctly across your website, paid ads and other online listings, your advertising may not be compliant with new legislation or meeting the expectations of your prospective customers/renters.
These traditional acronyms aren’t going anywhere. What is quickly changing is the search visibility landscape, adding brand new acronyms like “AEO” to the list.
Suddenly, people aren’t doing traditional Google searches and then clicking through page after page of links. They’re using AI search engines like ChatGPT to ask questions, and they expect quick, direct answers.
As of today, answer engines like ChatGPT and Claude don’t run paid ads; they rely on subscriptions and premium upgrades.
(Pssst: if you haven’t stopped to audit your traditional SEO, CRM, and advertising spend effectiveness , you’re already behind!)
Small and mid-size firms hire Vermillion Design + Co. to audit their systems and traditional marketing programs to help prep for the AI + transparency era. We’re known for spotting things like inefficiencies or even features already included in their contracts that were never set up correctly (frustrating, but, better late than never to fix it). We also see frontline sales teams undertrained on the very software/tools they rely on, which wrecks your reporting accuracy and ROI calculations.
The acronyms below come up in every audit. We don’t expect you to become an expert! But getting familiar with the basics will help you keep up when we walk through your results and recommend next steps.
PPC: Pay-Per-Click
A type of online ad where you pay only when someone clicks your ad.
Examples: Google Search Ads, LinkedIn ads, Facebook campaigns.
GEO: Geotargeting / Geofencing Ads
Geotargeting = A type of paid online ad that targets people based on their physical location. Started in early 2000s with search engine ads.
Geofencing = A type of paid digital ad that became popular in early 2010s as smartphones and mobile apps with GPS became common. Businesses can draw "fence” or virtual boundary around a physical location like a neighborhood or store, so their ads are shown only to devices within that zone.
Examples: A coffee shop could run geotargeted ads to people within two blocks at 8 a.m., or an apartment owner could geofence a competing apartment community to show ads to prospects visiting that property.
CPC: Cost Per Click
How much you pay each time someone clicks your ad.
Example: You spend $100 on Google Ads and get 50 clicks.
CPC = $2 per click.
CTR: Click-Through Rate
The percentage of people who saw your ad (impressions) and actually clicked.
Example: Your Instagram ad shows up 10,000 times (impressions) and gets 200 clicks.
CTR = (200 ÷ 10,000) × 100 = 2%.
CPL: Cost Per Lead
The average cost to generate one lead.
Example: $1,000 spent on LinkedIn Ads generating 50 leads
CPL = $20
CAC: Customer Acquisition Cost
The total cost to acquire one new paying customer (sales + marketing combined).
Example: Over a month, you spend $10,000 on Meta ads, email campaigns, and sales staff and acquire 100 new customers.
CAC = $10,000 ÷ 100 = $100 per customer.
ROA: Return on Ad Spend
How much money your ads bring in before considering any other business costs. Measures just the efficiency of ad spend.
Formula: Revenue from ads ÷ Ad spend.
Example: You run a TikTok Ads campaign, spend $1,000, and generate $5,000 in sales.
ROA = $5,000 ÷ $1,000 = 5 (or 500%).
ROI: Return on Investment
Measures overall profitability, considering all costs. ROI gives you the true profit picture by factoring in costs beyond just ad spend (like labor, tools, product fulfillment).
Formula: (Revenue – Total costs) ÷ Total costs.
Example: You spend $1,000 on TikTok Ads, but you also have $500 in product costs. Revenue = $5,000.
Profit = $5,000 – ($1,000 + $500) = $3,500.
ROI = $3,500 ÷ $1,500 = 233%
CRM: Customer Relationship Management
Software to manage customer data, leads, and interactions.
Examples: Salesforce, Yardi CRM IQ, EliseAI, Juniper Square.
KPI: Key Performance Indicator
A measurable metric used to track progress toward profit goals.
Examples: website traffic, CTR on Meta ads, monthly sales targets (retail), physical vs. economic occupancy (multifamily)
CTA: Call to Action
A prompt that drives user action.
Examples: “Make a Payment” button in a resident/customer portal, “Book an Appointment” link on a Chiropractor’s home page.
AI: Artificial Intelligence
The ability of machines or software to perform tasks that normally require “human” intelligence, like learning, problem-solving, or decision-making.
First coined in the 1950s, remained mostly experimental for decades.
AI took off in the late 2010s thanks to breakthroughs in machine learning, big data, and computing power.
Applications: chatbots like ChatGPT, recommendation systems on Netflix, or self-driving car software.
SEO: Search Engine Optimization
Improving visibility on search engines through content, structure, and backlinks.
First established in the late 1990s as a set of tactics that emerged after early internet search engines became public.
Examples: A local salon writing blogs so they appear in searches like “how to fix dry hair”, An apartment’s website shows up on the first page of search results when someone types “2-bedroom apartments in Denver” into a Google or Bing search.
AEO: Answer Engine Optimization
Optimizing content to appear in AI-driven search/answer engines.
While AEO is the leading term, alternatives used so far include AIO (Artificial Intelligence Optimization), GEO (Generative Engine Optimization), and Next-Gen SEO.
Examples: content tailored for ChatGPT, Perplexity, or Google SGE responses.
And finally… VIP: Vermillion Insightful Posts
The VIP Lounge is the official name for the Vermillion Design + Co. blog you’re currently reading, but it’s also our service philosophy (treating our partners & colleagues with Very Important Person-level care!).
And there you have it… acronym alphabet soup, served Vermillion-red hot. We hope you find these posts equal parts useful and entertaining as you evolve through today’s fast-shifting business landscape, what we’re calling Survival of the Wittest℠. Whenever you’re ready to audit your traditional marketing program and step into the AI + transparency era, we’ll be here, delivering VIP treatment starting with your first intro call.
Vermillion Design + Co. provides both consulting and hands-on help in one agency. Curious how we can help your business?