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Glossary of Affiliate Marketing Terms

Online Marketing Terms

In this guide you will find a glossary of affiliate marketing terms to help anyone understand words and phrases specific to affiliate marketing. Keep in mind that this affiliate marketing glossary will be updated as new terms and phrases as they emerge.  Internet business has a language all its own and to be successful at affiliate marketing is important to learn the lingo.  Below you will find a list of the most frequent affiliate marketing terms to help you learn the lingo.

Advertisers:  An affiliate marketing advertiser is identified as an online retailer, merchant or service provider whose products are being promoted by affiliate marketing.

Affiliate Manager:  An affiliate manager oversees workers in an affiliate program, which includes finding new affiliates and develop marketing strategies.

Affiliate Agreement: Terms that govern the relationship between a merchant and an affiliate.

Affiliate Link:  Affiliate marketing is a type of performance based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliates own marketing efforts.

Affiliate Program: Affiliate program is where a web advertiser or merchant recruits webmasters to sales their products in return for a commission.

Affiliate Software:  Software that provides tracking and reporting of commission triggering actions from affiliate links.

AOV:   is short for Average Order Value.  AOV is calculated by dividing sales revenue by numbers of orders. 

B2B: is short for Business to business, is normally used in business to describe business transactions between businesses.  This type of communication between the employees of two or more companies is called B2B communication.

B2C:  is an abbreviation that stands for business to consumers.  A transaction that occurs between a company and a consumer, as opposed to a transaction between companies.

Banner Ad:  A web banner or banner ad is a form of advertising on the Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page.

Bounce Rate:  The percentage of visitors to a particular website who navigate away from the site after viewing only one page.

CPA: is an abbreviation for cost per action.  CPA means advertisers pay published per lead.

CPC:  is an abbreviation for cost per click. Cost per click refers to the actual price you pay for each click in your pay per click.

CPL:  Cost per lead is an online advertising pricing model, where the advertiser pays for an explicit sign-up from an interested consumer interested in the advertiser offer.

CPM: Cost per thousand is an online advertisement where you buy to have 1000 advertisement impressions on one webpage.

CPO :  Cost per order, also called cost per purchase, is the cost of internet advertising divided by the number of orders.

CPS : Cost per sale is the amount an advertiser pays for each sale generated by an advertisement.

CR: The conversion rate is the proportion of visits to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators.

CTR : Click Through Rate  is the number of ad clicks divided by the number of impressions, page views, or queries you received.

Customer Acquisition Cost:  Customer acquisition cost is the resource a business needs to allocate in order to acquire an additional customer.

Charge Back:  Is the return of funds to a consumer.

Commission: Income an affiliate makes after selling a product or service.

Cookies:  Enable web browsers to help keep track of all the websites they have visited.

EPC: is an abbreviation for earning for click is a mathematical formula used to determine the commissions earned per click in online advertising.

EPM:  is an abbreviation for earning per 1,000 impressions.

Landing Page:  A landing page is any page on a website where traffic is send specifically to prompt a certain action or result.

Pay Per Lead:  The advertiser pays the publisher for every visitor who signs up as a lead.

Pay Per Call:  An advertiser pays the publisher every time a user “placers a call’ by clicking on the ad link.

Pay Per Impression:  This payment option is used for Internet marketing campaigns and is typically based on a “cost per 1000 impressions.”

Pay Per Time:  An advertiser pays the publisher or hosting service based on how much time is spends on the site.

SEO:  is an abbreviation for Search Engine Optimization. Is the process of affecting the visibility of a website or a web page in a search engines “natural” or un-paid “organic” search.

SEM:  Search engine marketing is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results.

SERP:  A search engine results page is the listing of results returned by a search engine in response to a keyword query.

SPAM:  Irrelevant or inappropriate messages sent on the Internet to large number of recipients.

Terms of Service:  Terms of service are rules which one must agree to abide by in order to use a service.

Unique Visitor:  Unique visitors refer to the number of distinct requesting pages from the website during a given period, regardless of how often they visit. 

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