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.
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.
CX: Customer Experience Design
How a customer experiences a brand across every interaction, from first impression and sales to support and long-term loyalty.
In startup businesses, CX is usually owned by the founder and/or shared across a small team. Everyone touches the customer, and decisions move fast. In larger enterprises, CX is typically co-owned by executives across departments like marketing, product, operations, and customer support.
CX differs from User Experience (UX) Design, or how a person uses and interacts with a specific product, website, or app.
UX = using the product
CX = the full journey with a company/brand
ROA or ROAS: 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 that stores and manages customer data, leads, and interactions.
Examples: Salesforce, Yardi CRM IQ, EliseAI, Juniper Square
Many CRMs are built as two-sided systems. One side is an internal admin dashboard used only by staff. The other side is a client portal, where customers can log in to update details like their email, mailing address, and communication preferences (staff can see those updates in real time on their end).
CMS: Content Management System
Software that lets you create, edit, and manage your website content (without having to manually code HTML). It is the publishing tool and “control panel” of your website, where you log in to manage what the public sees.
Examples: WordPress, Squarespace, Yardi RentCafe.
CMS integration examples: EliseAI, MailChimp, Google Analytics, Zillow.
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.
Even though IT, compliance, finance, and marketing often speak different “languages,” a company’s success depends on how well they communicate and collaborate. So let’s do a quick memory check. How many of these acronyms can you understand now?
If your CRM isn’t tracking “How did you hear about us?” correctly, you can’t calculate your CPL.
If your SEO performance isn’t measured effectively, you may miss the chance to scale back on PPC during seasonal surges.
If your CTA isn’t compelling, no one is clicking through to email/call/AI chat with your business and you’re losing income.
If your CX is poorly integrated, you increase regulatory risk in advertising and undermine sales performance against KPIs.
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℠.
This list of classic, corporate business acronyms aren’t going anywhere. What is quickly changing is the search visibility landscape, and it’s adding a whole new set of acronyms to the list. 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?