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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