We know our industry can be guilty of using lots of jargon, which can be confusing when you’re starting out in the world of Affiliate Marketing. Following on from our guide to Affiliate Marketing for Beginners we’ve created our very own Jargon Buster which breaks down the key terms used across the Affiliate Marketing industry.
Advertiser (also known as a Merchant): A website that sells a product or service that an affiliate promotes in the digital space.
Affiliate (also known as a Publisher or Partner): A website that promotes an advertisers’ offering in the digital space and is paid on a performance basis for driving a predefined desired action, such as a sale or a lead.
Affiliate Link: A unique link that is provided to the affiliate by the advertiser. This link includes a unique tracking code so an advertiser can identify affiliates and the sales that they drive.
Affiliate Network: An affiliate network is a third party which provides services to affiliates and advertisers. This could include, programme management, tracking, reporting and processing payments.
Banner: A form of advertising used in the digital space.
CTR: Click Through Rate. The frequency of clicks through on a particular creative an affiliate is using.
Conversion Rate: The percentage of clicks that converted e.g. clicks that converted to sales or leads.
CPA: Cost per Action. The measurement of the advertiser’s overall conversion cost. This advertising model means affiliates are only paid for a predefined action that is a direct result of their marketing activities.
CPC: Cost per Click. The cost for the advertiser each time a consumer clicks on an ad, link or banner on an affiliates site.
CPS: Cost per Sale. A payment model where the affiliate is paid based on the number of sales that are directly generated by their marketing efforts.
CPL: Cost per Lead. How much it costs the advertiser for each qualified lead.
CPM: Cost per Mille (thousand). The amount of money an affiliate receives for the display of a banner advert per 1000 times.
Commission: The amount the advertiser pays an affiliate for generating a predefined desired outcome, such as a sale or lead.
Cookie: A cookie is a small piece of data that works with web browsers to store information including, user preference, login or registration information and shopping basket information. A Cookie is used to remember the link or advert that the consumer clicked on, to ensure the affiliate gets rewarded for the transactions and/or actions they drive.
Deeplink: A link used that connects to the page beyond the homepage of a website.
EPC: Earnings per Click. This metric, divides earnings by traffic delivered to calculate the profitability of affiliate activity.