The Adtraction Blog

20 affiliate marketing terms you need to know

The high number of abbreviations used in digital marketing can be overwhelming. We got your back sharing 20 affiliate marketing terms you should know.

API

API stands for application programming interface. The API is a set of functions and procedures used by affiliates or advertisers who want to get automated data from Adtraction's system instead of manually signing in and acquire reports. Their API is «talking» to our API.

CPA

May refer to cost per action and cost per acquisition. CPA is a payment model in which affiliates are paid for a specified action. An action can for instance be to generate a lead or a sale.

CPC

Cost per click refers to another payment model according to which advertisers pay their affiliates per received click.

CPL

Cost per lead is closely related to CPA, referring to the specified action of generating a lead.

CPM

The technical term cost per mille refers to cost per thousand impressions. In this case, the advertiser pays a given price per thousand activity.

CPO

Cost per order is the traditional payment model for affiliate marketing. Affiliate marketing is performance based, and the advertiser pays a given commission per order with which an affiliate contributes.

CR

Conversion rate is the percentage that completes a desired action out of the total number of clicks. If your tracking link has had 10.000 clicks and you have had 100 sales, your conversion rate is 1%.

Conversions ÷ clicks = CTR.

CTR

The click through rate shows how often people who see your advertising end up clicking it. If you have 1.000 website visitors to your blog, and 100 click your ad, your CTR is 10%.

Clicks ÷ impressions = CTR.

EPC

Earnings per click is what you earn on average for each unique click sent. If you earn 1.000 and have 10.000 clicks, your EPC will be 0,1.

Earnings ÷ number of unique clicks = EPC.

EPI

Tech alert! EPI, or enhanced publisher information, allows you to create custom parameters behind your tracking link. By using EPI in your tracking links, you can send your own information to Adtraction’s system which will be shown in the Transaction report of your account.

Google Analytics

Google Analytics is a free web analytics tool that generates detailed statistics of your website visitors.

Google Trends

Google Trends is a search trend feature provided by Google. The feature provides information of how frequently a specific term is entered in to Google’s search engine during a given time period.

Google Tag Manager

Google Tag Manager is a tool that allows you to manage and deploy snippets of code or tracking pixels on your website without requiring code modification.

Lead

A contact with the potential of becoming a customer.

LR

Lead rate is the percentage of leads received from the total number of unique clicks. If 1.000 unique clicks have turned in to 10 leads, your LR is 1%.

Leads ÷ number of unique clicks = LR.

Pixel

A tracking pixel is a code snippet that allows the tracking of visitor behavior on a website. When a user visits a website, a pixel is loaded. Tracking pixels let advertisers acquire data for online marketing, web analysis or email marketing.

PPC

Closely related to CPC, PPC stands for pay-per-click, and refers to a model in which advertisers pay a fee for each click on one of their ads.

SEM

Search engine marketing can include search engine optimization, paid ads and other search engine related services.

SEO

Short for search engine optimisation. SEO concerns the process of increasing the quantity and quality of traffic to your website through organic search engine results.

Tracking link

A tracking link, often referred to as affiliate link, is a unique URL to which an affiliate sends an audience for a particular offer.

Questions, concerns or other terms you would like to know more about? Give us a shout at support@adtraction.com.

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