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AGENCY INDEX

Buyer's guide

Digital marketing glossary

22 terms you will hear when comparing marketing agencies, from SEO and PPC to GEO, retainers and ROAS, each defined in a sentence or two.

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Terms

SEO (search engine optimization)
Work that helps a website appear higher in unpaid search results, through technical fixes, useful content, local listings and links from other sites.
Local SEO
SEO focused on map and near-me results: your Google Business Profile, reviews, location pages and consistent business details across directories.
PPC (pay-per-click)
Advertising where you pay each time someone clicks your ad, most often on Google Ads or Microsoft Ads. Often used interchangeably with paid search or SEM.
SEM (search engine marketing)
Marketing on search engines. Usually means paid search ads, sometimes used to cover both paid search and SEO.
GEO (generative engine optimization)
Work aimed at getting a brand named and cited in answers from AI assistants such as ChatGPT, Perplexity, Gemini and Google AI Overviews. Also called AI search optimization or AEO (answer engine optimization).
AI Overview
The AI-written summary Google shows above some search results, with links to the sources it drew on. Google AI Mode is a separate, conversational search experience.
AI visibility
How often an AI assistant names a brand when asked a relevant question. MN Agency Index measures it as the share of recorded buyer questions where an agency is named.
Content marketing
Creating articles, guides, video and other material that attracts and informs buyers, often supporting SEO and email.
Retainer
A recurring monthly fee for an agreed scope of ongoing work, common for SEO, paid media management and content.
Project fee
A one-time price for a defined deliverable, such as a website build, an audit or a brand identity.
Minimum project size
The smallest engagement an agency will take on, often shown on directory listings (for example $5,000+). It is a floor, not a typical price.
Hourly rate
The price per hour of agency time, used for consulting, small tasks or work billed against a bank of hours.
Percentage of ad spend
A paid media management fee calculated as a share of the ad budget, sometimes with a monthly minimum.
Statement of work (SOW)
The document that sets out deliverables, timelines, responsibilities and fees for an engagement. Compare agencies on their SOWs, not their pitch decks.
Notice period
How far in advance either side must give notice to end a contract. Check it before signing a retainer.
KPI (key performance indicator)
The metric used to judge whether the work is succeeding, ideally tied to a business outcome such as qualified leads or revenue.
CPC, CPL and CPA
Cost per click, cost per lead and cost per acquisition: what you pay on average for each click, lead or customer.
ROAS (return on ad spend)
Revenue from ads divided by what the ads cost. A ROAS of 4 means four dollars of revenue for every dollar of spend.
Conversion rate
The share of visitors who complete a goal, such as filling in a form, calling or buying.
Google Partner
A Google Ads program badge for agencies that meet spend, certification and performance requirements.
Case study
An agency's write-up of work for a client. The useful ones state the starting point, what changed and a measurable result over a stated time.
Schema markup (structured data)
Code on a web page that labels its content (an organization, a product, an FAQ) so search engines and AI systems can read it reliably.

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