Share
Understanding the specialized terms and acronyms used in the affiliate marketing world is a key to success. Whether you’re an affiliate, advertiser, or just curious about the industry, we compiled the most commonly used terms to ensure you’re well-prepared to speak the language of affiliate marketing.
Action
A term that can refer to any desired user activity, such as a sale, lead, or any other predetermined activity.
Advertiser
The company that creates and pays for advertisements. In affiliate marketing, this is often the merchant or brand owner.
Affiliate
An individual or company that promotes a merchant’s products or services in exchange for a commission on sales or leads generated.
Affiliate Network
A platform that connects affiliates with advertisers. The network facilitates the tracking, reporting, and payment processes.
Average Order Value (AOV)
The average amount spent each time a customer places an order.
Brand
The identity and image of a company or product that differentiates it from competitors. Strong branding can drive customer loyalty and recognition.
Clicks
The number of times users click on a link or advertisement. It’s a basic metric to gauge the level of engagement.
Conversion Rate (CR)
The percentage of visitors to a website who take a desired action, such as making a purchase or signing up for a newsletter.
Cookie
A small piece of data stored on a user’s computer by their web browser. Cookies are used in affiliate marketing to track user activity and attribute sales or leads to the correct affiliate.
Cost Per Action (CPA)
A pricing model where the advertiser pays for a specific action taken by a user, such as a sale, lead, or form submission.
Cost Per Click (CPC)
A pricing model where the advertiser pays each time a user clicks on their ad.
Cost Per Lead (CPL)
A pricing model where the advertiser pays for each lead generated, such as a completed contact form or email sign-up.
Key Performance Indicators (KPI)
Metrics used to evaluate the success of a marketing campaign or business activity. Common KPIs in affiliate marketing include CR, AOV, and ROI.
Pixel
A small piece of code placed on a website to track user behavior and conversions. Pixels are often used to measure the effectiveness of advertising campaigns.
Publisher
Another term for an affiliate. It refers to the entity that publishes content and promotes products to drive sales or leads.
Return on Ad Spend (ROAS)
Similar to ROI, but specifically focused on advertising spend. It measures the revenue generated for every dollar spent on advertising.
Return on Investment (ROI)
A measure of the profitability of an investment. In affiliate marketing, it’s often used to evaluate the effectiveness of marketing campaigns.
Revenue
The total income generated from sales or other business activities. In affiliate marketing, it’s the money earned from referred sales.
Trademark (TM+) Bidding
A practice where affiliates bid on keywords that include a brand’s trademark. It’s often used in paid search advertising to capture traffic from users searching for specific brands.
Vertical
A specific niche or industry within the market, such as health and wellness, financial services, or consumer goods. Affiliates often specialize in particular verticals to better target their audience.
Work With Advertise Purple
If you’re interested in exploring affiliate marketing for your brand, our team is here to guide you. We specialize in creating successful affiliate partnerships that drive conversions, increase visibility, and maximize ROI. Contact our team to discover how affiliate marketing can elevate your brand’s digital presence and sales performance.
