Glossary
Performance marketing terms, in plain English.
Short definitions of the words you will hear from agencies and in Ads Manager: CPL, ROAS, CAPI, SQL and more.
This glossary defines the Meta Ads, Google Ads and lead-generation terms business owners meet most: cost per lead, ROAS, break-even ROAS, CPM, the Conversions API, SQL and more. Each definition is short, starts with the answer and links to a guide or case study where we show the number in a real account.
A/B test
A controlled comparison of two versions of an ad, page or audience, changing one thing at a time, to see which gets the better result. It only works if both versions get similar budget and time, and enough results to tell luck from a real difference.
Ad fatigue
The decline in an ad’s performance after the same people have seen it many times. Signs are rising frequency, falling click-through rate and rising cost per result. The fix is fresh creative, which is why we test new ads in batches.
Attribution window
The period after someone sees or clicks an ad during which a platform credits a conversion to that ad. Meta commonly reports on a 7-day click window. A longer window credits more conversions to ads, so the same sale can look different on two platforms.
Blended ROAS (MER)
Total revenue divided by total marketing spend across all channels, also called marketing efficiency ratio. It uses your store’s revenue instead of a platform’s attribution, so it is harder to flatter and better for business decisions.
Break-even ROAS
The return on ad spend at which ads earn exactly what they cost. It equals 1 divided by your contribution margin: a 40% margin gives a break-even ROAS of 2.5. Any campaign below it loses money before overheads.
CAC (customer acquisition cost)
The total cost of winning one new customer, including ad spend and often fees, creative and tools. It is the number to compare with a customer’s lifetime value to decide how much you can spend on ads.
Conversion
An action you count as a result, such as a form submission, a call, a purchase or a WhatsApp chat. In Google Ads a conversion is whatever the account is set to count, so always check the definition before you compare conversion rates.
Conversions API (CAPI)
Meta’s way of sending events such as Lead or Purchase from your server to Meta, alongside the browser Pixel. It recovers events lost to ad blockers and browser limits. Browser and server events share an event ID so Meta counts each once.
Cost per lead (CPL)
Ad spend divided by the number of leads. A low CPL is not always good: a cheap lead that never answers costs more than a dearer one that buys. Track cost per qualified lead as well.
Cost per qualified lead
Ad spend divided by the number of leads your team marked as worth following up. It is a better measure of lead generation than raw cost per lead because it removes enquiries that never had a chance of buying.
CPC (cost per click)
Ad spend divided by clicks. On Google Search it is the main price signal; on Meta it is a by-product of CPM and click-through rate. A low CPC does not mean a low cost per lead if the clicks do not convert.
CPM (cost per mille)
The cost of 1,000 impressions. Meta mainly charges by impressions, so CPM shows how expensive it is to reach your audience. In two travel accounts we manage, lifetime CPM was about ₹31 to ₹34.
CRM
Customer relationship management software or a lead sheet that records each lead, who called, what happened and the outcome. It lets you report cost per customer and feed outcomes back to ad platforms.
CTR (click-through rate)
Clicks divided by impressions. A higher CTR usually means the ad is relevant to the audience. A 15% CTR on a narrow Google Search campaign is possible; on Meta feeds a few percent is typical for link clicks.
Custom audience
A Meta audience built from your own data, such as website visitors, video viewers, people who chatted with you or an uploaded customer list. It is used for retargeting and as a seed for lookalike audiences.
Demand Gen
A Google Ads campaign type that shows visual ads across YouTube, Discover and Gmail to people who may be interested but are not actively searching. It sits between Search (intent) and Display (reach).
Event ID
A unique identifier sent with a browser event and the matching server event so Meta can recognise they are the same action and count it once. Without it, a Lead can be counted twice.
Frequency
The average number of times a person saw your ad. Low frequency (around 1 to 2) means broad reach; rising frequency with rising cost per result signals fatigue. Travel Junction’s lifetime frequency was 1.52.
Instant form (lead form)
A Meta ad format that opens a form inside Facebook or Instagram, pre-filled with the person’s details. It lowers friction and can add qualifying questions, but lead quality varies, so follow-up speed matters.
Landing page
The page a visitor reaches after clicking an ad. A good one has one message that matches the ad, one clear action, fast loading on a phone and tracking installed. It decides how much of the paid click turns into an enquiry.
Lookalike audience
A Meta audience of people who resemble your existing customers or leads, built from a source list. It helps find new buyers but depends on the quality and size of the source data.
Messaging conversation started
The result Meta counts when someone taps a click-to-WhatsApp or Messenger ad and sends a first message. It is an enquiry, not a sale, and it is the main result in the travel accounts on this site.
Performance Max
A Google Ads campaign type that uses Google’s automation to show your ads across Search, YouTube, Display, Gmail and Maps from one set of assets. It reaches widely but gives less control, so it needs trustworthy conversion tracking.
Pixel (Meta Pixel)
A snippet of code on your website that sends visitor actions such as page views and leads to Meta. It powers tracking, retargeting and optimisation. It is now usually paired with the Conversions API.
Retargeting
Showing ads to people who already interacted with you, such as visitors, video viewers or people who started a chat. It tends to cost less per result than prospecting but reaches a limited audience.
ROAS (return on ad spend)
Revenue attributed to ads divided by ad spend. A ROAS of 4 means ₹4 of sales credited for every ₹1 spent. It is not profit; compare it with break-even ROAS, which comes from your margin.
RTO (return to origin)
An order shipped but returned to the seller undelivered, common with cash-on-delivery in India. RTO costs shipping and ad spend with no revenue, so it can turn a good-looking ROAS into a loss.
SQL (sales-qualified lead)
A lead your sales team has judged ready for a real sales conversation. The share of enquiries that become SQLs is a better quality signal than the enquiry count. Define it in writing before you report it.
UGC (user-generated content)
Content that looks like it was made by a customer, such as a person talking to a phone, a real trip or an unboxing. In ads it tends to feel more trustworthy than polished adverts.
UTM parameters
Tags added to a link (utm_source, utm_medium, utm_campaign, utm_content, utm_term) that tell analytics where a visitor came from. A consistent UTM standard lets you tie each lead to the exact campaign and ad.
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