Many people are surprised at the number of sophisticated ways advertisers try to reach them. Most Internet surfers could identify a banner or text ad, but the majority could not tell you about performance marketing, also known as affiliate marketing and pay-for-performance marketing.
Affiliate Marketing is one channel of marketing products and services online. It traditionally includes a retailer and a publisher, sometimes known as an affiliate.
For this article, we define a publisher as an independent party that promotes an advertiser’s products or services in exchange for a commission on leads or sales.
Many people are surprised at the number of sophisticated ways advertisers try to reach them. Most Internet surfers could identify a banner or text ad, but the majority could not tell you about performance marketing, also known as affiliate marketing and pay-for-performance marketing.
Affiliate Marketing is one channel of marketing products and services online. It traditionally includes a retailer and a publisher, sometimes known as an affiliate.
For this article, we define a publisher as an independent party that promotes an advertiser’s products or services in exchange for a commission on leads or sales.
They must have a Web site designed for a specific niche of consumers or audience. While not all affiliates have content sites, it is a simple way to enter into the affiliate marketing industry and a solid foundation to build upon if you later branch out to other marketing channels such as search engine marketing.
You should have basic HTML skills to insert and track advertisements such as banners, buttons, and links.
A set amount of time per day to dedicate to the program depending on the number of Web sites
Learn the Language ‘ Affiliate Marketers Speak
Just like in any industry, affiliate marketing has its language. Don’t be intimidated; pretty soon, these terms will be second nature.
Application Service Provider (ASP ) ‘ An ASP is an online network accessible through the Internet instead of installing software. It is quickly integrated with other Web sites, and the services are easily implemented and scalable. An example of an ASP is the CJ Account Manager’.
Transparency is a characteristic of the CJ Marketplace, where advertisers, publishers, and ads’ performance are published openly within the CJ Account Manager. Publishers may create a Commission Junction account and join the CJ Marketplace at no cost. Publishers must regularly generate activity within the network (within 90 days) to maintain an active Commission Junction account.
Commission Payout ‘ An amount of income received by an affiliate for some quantifiable action such as selling an advertiser’s product and/or service on the publisher’s Web site.
Click-through ratio (CTR) — Also known as a click. A consumer’s action when they are referred from a Web site through a link or advertisement is taken to another Web site.
The Click-through ratio is the percentage of clicks for the number of advertising impressions displayed.
Cost per action (CPA) — A metric for online advertising where a rate is set for every action taken by an end-user. It is also known as pay for performance.
Cost per thousand impressions (CPM) — A metric for online advertising where a rate is set for every thousand impressions.
Conversion rate- The percentage of visitors who take the desired action. The action that determines conversion is determined by the advertiser and maybe a sale on the advertiser’s Web site, a completed lead form, or another action.
Impression- The viewing of an advertising banner, link, or product.
Search Engine Marketing (SEM ) — The act of marketing a Web site via search engines. This can be done by “natural” or “organic” search, which refers to all unpaid search results based on relevance in the content site, or “paid” search, which refers to all pay-per-click advertising (such as on MSN, Yahoo! or Google).
Search Engine Optimization (SEO)– The process of increasing the number of visitors to a Web site by ranking high in search engines’ search results. Content site publishers use varied techniques to improve a Web page’s results.
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