Affiliate Marketing Glossary

50 terms

Essential terms and definitions for media buyers and affiliate marketers

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CAC (Customer Acquisition Cost)

The total cost of acquiring a new customer, including marketing and sales expenses. A healthy business has LTV significantly higher than CAC.

Cloaking

A technique of showing different content to ad platform reviewers vs regular users. Used to bypass ad policies but violates platform rules and is risky.

CPA (Cost Per Action)

A pricing model where advertisers pay for a specific action taken by a user, such as a purchase, sign-up, or deposit. CPA is the most common model in affiliate marketing.

CPC (Cost Per Click)

A pricing model where advertisers pay for each click on their ad. Common in PPC (pay-per-click) advertising on platforms like Google Ads and Facebook.

CPI (Cost Per Install)

A pricing model where advertisers pay for each app installation. Common in mobile app marketing and gaming verticals.

CPL (Cost Per Lead)

A pricing model where advertisers pay for each qualified lead generated. A lead typically involves collecting user contact information through a form.

CPM (Cost Per Mille)

A pricing model where advertisers pay per 1,000 impressions of their ad. "Mille" means thousand in Latin. Used for brand awareness campaigns.

CR (Conversion Rate)

The percentage of users who complete a desired action. Calculated as Conversions / Total Visitors × 100%. A key metric for optimizing campaigns.

Creative

The visual and textual elements of an advertisement, including images, videos, headlines, and copy. Good creatives significantly impact CTR and conversions.

CTR (Click-Through Rate)

The percentage of people who click on an ad after seeing it. Calculated as Clicks / Impressions × 100%. Measures ad creative effectiveness.

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