Lead generation glossary

Agencies love jargon. We do not. Here are plain-English definitions of the terms you will meet when you buy Google Ads, Meta Ads and lead generation, from cost per lead to Consent Mode.

34 terms · Updated

Leads and funnels

Lead

A person or business that has shown interest in your service by sharing contact details, calling or sending a message. A lead is an opportunity, not yet a customer.

Qualified lead

A lead that meets criteria agreed in advance, typically the right service, inside your service area, a realistic timeframe and a reachable decision-maker. The definition decides what campaigns are optimized for.

Lead generation

The process of attracting potential customers and turning their interest into enquiries a sales team can follow up. For service businesses it usually combines paid ads, landing pages, lead capture and tracking.

Lead generation system

The connected parts that turn a stranger into an enquiry: traffic source, landing page, capture method, qualification step, tracking and lead routing. A weak part limits the whole system.

Lead generation funnel

The sequence of stages between first contact and a paying customer. For a service business running ads: ad, landing page, lead capture, qualification, sales follow-up and customer.

Landing page

A web page built for one audience and one action, usually to receive paid traffic. Unlike a homepage, it focuses on a single service and makes the next step obvious.

Speed to lead

The time between an enquiry arriving and your team’s first response. For urgent services and considered purchases alike, slow responses lose leads to competitors who call first.

Metrics

Conversion

A completed action you have defined as valuable, such as a form submission, a tracked phone call or a booking. Conversions are what ad platforms optimize toward, so they must reflect real enquiries.

Conversion rate

The share of visitors or clicks that become conversions. For a landing page: leads divided by landing page visits.

Cost per click (CPC)

The amount paid for one ad click. In Google Ads you set a maximum bid, and Google says you will often pay less than that maximum.

Cost per lead (CPL)

Ad spend divided by the number of leads it produced. Useful for day-to-day management, but misleading on its own because it treats every lead as equal.

Customer acquisition cost (CAC)

The total cost of marketing, including fees and tools, divided by the number of new customers it produced. Also called cost per customer.

Return on ad spend (ROAS)

Revenue attributed to advertising divided by the ad spend that produced it. For service businesses, gross profit gives a more honest picture than revenue.

Customer lifetime value (LTV)

The gross profit you can expect from a customer over the whole relationship, including repeat work and maintenance plans. It sets how much you can afford to pay to win a customer.

Booked opportunity

A lead that has turned into a scheduled quote, estimate, inspection or consultation. It sits between a qualified lead and a closed job.

Meta Ads

Instant form

A Meta lead form that opens inside Facebook or Instagram, often pre-filled with the person’s details. It lowers friction, so qualifying questions matter more.

Special Ad Category

A Meta classification required for certain ads, such as those about credit or financial products, employment or housing. It limits targeting options, so campaigns must be planned around it.

Meta Pixel

A piece of code on your website that sends browser events, such as page views and leads, to Meta so ads can be measured and optimized.

Conversions API

A server-side connection that sends events, such as qualified leads, directly to Meta. It complements the Meta Pixel and helps Meta learn which leads matter.

Tracking and data

Call tracking

Measuring phone calls by the ad, keyword or page that produced them, usually with tracking numbers or Google forwarding numbers. Essential for trades where most enquiries are calls.

UTM parameters

Tags added to a link, such as utm_source and utm_campaign, that tell analytics tools where a visit came from.

GCLID

The Google Click Identifier, a parameter Google Ads adds to your landing page URLs when auto-tagging is on. Storing it with each lead lets you send outcomes back to Google Ads later.

Offline conversion import

Sending results that happen after the click, such as qualified leads or closed jobs, back to an ad platform so bidding can optimize for real business outcomes.

Working with an agency

Monthly retainer

A fixed monthly fee for an agreed scope of work, such as strategy, campaign management, landing pages and reporting. Ad spend is typically paid to the ad platform, not included in the fee.

Performance-based pricing

An arrangement where part of an agency’s fee depends on results, such as qualified leads. It only works with reliable tracking and a clear, agreed definition of a qualified lead.

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