Glossary

Terms used in performance based marketing:

AFFILIATE :
also known as associate, member, publisher, web portal or webmaster
Independent website that refers clicks, leads or sales to a merchant in exchange for commission.

AFFILIATE MARKETING :
also known as pay for performance, performance-based, referral-based or revenue-sharing marketing
Revenue sharing partnership between a merchant and one or multiple affiliates, where the affiliate is paid a commission for referring clicks, leads or sales to a merchant’s website.

AFFILIATE PROGRAM :
also known as associate, partner, referral, reseller or sponsor programs
Any type of revenue sharing program where an affiliate receives a portion of income for delivering sales, leads or traffic to a merchant’s website.

BANNER BURNOUT :
When a creative has been overexposed to a user to the point that response rates drop.

CALL TO ACTION :
Used in ad copy to generate user response. Examples include phrases such as “Click HERE!”, “Act NOW!”, “Join Today!” etc. Good calls to action can help boost CTR rates and increase the success of the campaign.

CLICK :
also known as click-through
The action a visitor takes when they click on a merchant’s link.

COOKIE :
A small file/code that a website places on a visitor’s hard drive for tracking the surfing habits, sales or other user-specific data. Affiliate marketing relies on cookie technology to track any leads or sales a visitor generates by clicking on a merchant’s link.

CPA :
also known as Cost Per Acquisition or Action
Advertiser pays each time a visitor clicks on an advertisement and takes some sort of action, whether it is a lead or a sale.

CPC :
also known as Cost Per Click
Advertiser pays each time a visitor clicks on an advertisement. Clicks can be generated through banners, other graphics, text links, pop ups, emails etc.

CPL :
also known as Cost Per Lead
Advertiser pays each time a visitor clicks on an advertisement and fills out a signup form, whether it is fee information, a free trial offer, free download etc. The purpose of this is to introduce users to the advertiser’s product or service, provide information, dialogue, and ultimately “Up-sell” the user to become a paying customer.

CPM :
also known as Cost per 1,000 Impressions
Advertiser pays for every 1,000 ads viewed. This includes banners and other size graphics. Additionally, this is how many emails and newsletters are sold (per 1,000 people the email is sent to).

CREATIVES :
also known as banners
The promotional tools an advertiser users to attract visitors to their site. Encompasses banners, text links, towers, buttons, badges, email copy, pop ups, etc. Creatives are essential for generating user interest and response.

CTR :
also known as Click-Through Rate
The percentage of people who click on an ad for every 1,000 views.

EMAIL DROP :
also known as email bursts, mailers
Running an advertisement to an email list.

EPC :
also known as average earnings per hundred clicks
A metric for measuring link effectiveness and number of clicks converted into sales. It is calculated as the ratio of earnings over a defined time period to total clicks, multiplied by 100.
NOTE: some affiliate service providers calculate EPC as earnings per single click, not hundred clicks. Therefore, EPC metrics cannot necessarily be compared across affiliate networks.

FREQUENCY CAP :
A method of limiting the number of times a user is exposed to viewing the same creative within a set period of time. This is a way to avoid banner burnout.

IMPRESSION :
also known as a hit
When a user views a banner, link or page on the Internet.

JAVASCRIPT :
An Internet scripting language used to create dynamic pages on the web that allow for user interaction. Internet advertising uses JavaScript to generate what is commonly known as pop-up or pop-under advertising.

LEAD :
A potential customer, who is usually defined by a sign up, download or form submission. For example, after clicking on a merchant’s banner a visitor is asked to sign up for a newsletter. Upon submitting information they become a lead.

LINK :
also known as a hyper-link
A piece of code containing the web address of the site, that when clicked leads a user from an affiliate’s website back to a merchant’s landing page and visa versa.
Links can take the form of a banner, text link, JavaScript or newsletter and are usually located on an affiliate’s website, email or newsletter.

MERCHANT :
also known as advertiser, client, e-commerce site, online retailer or partner
A business that sells goods or services online and pays its affiliates a commission in exchange for impressions, leads or sales.

RON :
also known as Run of Network
An offer which is available for all sites within the ad network to run.

STRATEGIC TEXT LINKS :
Text links which are placed within relevant content of a website.
CTR rates on text links can be many times higher than RON banners.

TARGETED ADVERTISING :
Working to place advertising campaigns on sites and content that match the demographic appeal of the advertisement.

UNIQUE VISITORS :
The number of unique individuals who visit a site during a given period of time.