Performance marketing is a marketing industry, whose goal is to achieve specific, measurable results. Its distinctive feature is the ability at all stages to see a specific, quantitative indicator that reflects the outcome of each individual marketing activity (e.g., site visitor cost, application cost, call cost, order cost, and end cost of attracting the customer who has carried out the target activity).
An affiliate (web master, Publisher, advert) — a professional marketer (or a group of marketers within a single account in an affiliate network) who advertises the product or service for merchants and receives a cash reward for the target action of the client.
Merchant (advertiser) — in this context is one who incentivizes affiliates to engage customers by creating offers and paying the affiliates (often through affiliate networks) for targeted customer actions that match the conditions of the offer. Often, merchants describe possible ways of attracting customers by providing materials, ready-made templates, scripts, and so on.
Affiliate Marketing is an internet marketing industry that works on the basis of a payment model for affiliates (web-masters) for each targeted action by their customers (order, purchase, install, etc.). Merchant often do not work directly, but through affiliate networks (CPA Networks).
More details in the article below.
CPA is a payment model that assumes payment for specific actions. There are many ways to pay for an action, and the most popular ones are:
- СPL: Cost per lead — payment for an application/action.
- CPS: Cost per sale is a payment for a confirmed sale.
- CPO: Cost per order — payment for an order.
- CPC: Cost per call — payment for a call.
- CPI: Cost per install — payment for the installation of an application.
Read more about CPA here.
Affiliate Networks (CPA Networks) — services in the sector of affiliate marketing, offering affiliates remuneration on the basis of the CPA model and providing merchants services necessary for the establishment of affiliate programs. Affiliate networks charge merchants for customer actions, pay commissions to affiliates and charge commissions for the service.
Offer — an advertising proposal to attract targeted activities from merchants or affiliate networks.
Tracking — tracking of many different campaign metrics in the affiliate marketing process. For example — time, source, or number of target activities.
Fraud — in terms of affiliate marketing, various ways of deceiving the affiliate network and merchants, in order to obtain a monetary reward. Varieties of fraud may be: Emulation of target actions, spoofing the source of introduced clients (cookie-stuffing), deceiving customers by using misleading ads to increase the likelihood of target action (for example, by using a significantly lower price than the offer of the merchant) and others.
Lead — the target action of a customer in response to an ad campaign: sales, order, call, register, application installation (install), etc.
