Glossary of terms


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Affiliate Marketing
A revenue sharing arrangement between online merchants and publishers (affiliates) in which the affiliate earns a commission for producing a sale, lead or click for the merchants site.

Affiliate Network
Intermediary between the merchants and publishers, including tracking technology, reporting tools, and payment processing.

Affiliate
A publisher that promotes a merchant's products and/or services and that earns a commission for referring clicks, leads, or sales.

Advertiser (Merchant)
Business owner who works with affiliates to generate business for their site or product.

Affiliate Agreement
The terms that govern the relationship between a merchant and an affiliate.

CPA (Cost-Per-Action)
The cost amount for a conversion such as a sale or lead.

CPC (Cost-Per-Click)
Cost of an individual click when paying on a per-click basis.

CPM (Cost-Per-Thousand)
The cost of 1000 banner impressions.

Targeted Marketing
Offering the right offer to the right customer at the right time.

Conversion
When one of your visitors makes a purchase on the merchants site... That is, converts from a visitor to a buyer.

Cloaking
Hiding of page content or affiliate linking code.

Click-Through
When a user clicks on a link and arrives at the next page.

Click-Through Ratio (CTR)
Percentage of visitors who click-through to a website.

Creative
The promotional tools advertisers use to draw in users. Examples are: text links, towers, buttons, badges, email copy, pop-ups, display banners etc.

Banner Ad
Advertising in the form of a graphic image via display marketing.

Contextual Link
Placement of affiliate links within related text.

Opt-In
The term opt-in means a user has given consent to be attached to your list by entering their email.

Demograph
Data used to separate human populations such as age, race and gender.

Email Link
An affiliate link to a merchant site contained in an email newsletter or signature file.

Impression
An advertising metric that indicates how many times an advertising link or banner is displayed.

Search Engine Optimization (SEO)
The process of appearing higher in the rankings on search engines.

Text Link
A link not accompanied by a graphical image.

Tracking URL
A URL with your special affiliate code attached to it. Visitors arriving at the site are tracked back to you through your special code, or ID.

Unique User
A unique visitor to your website – probably, the best indicator of site traffic.

ROI
Return on Investment (How to calculate ROI: ROI = (Revenue - Cost) divided by the Cost).

PPC
Pay Per Click.

PPV
Pay Per View.

PPD
Pay Per Download.

EPC
Earning Per Click.

Charge Back
An invalid sale that results in the affiliate's commission being forfeited.

Niche
Specific and targeted section of a particular market.

Affiliate Manager
The person responsible for running the merchant’s affiliate program.

Affiliate Tracking
The process of tracking a link uniquely by affiliate using an Affiliate Link.

EMD
Exact Match Domain.
 

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