Affiliate marketing can seem extremely complex, especially when it comes to industry slang and unfamiliar abbreviations. These can sometimes seem to be a never ending story. Well… at least at the very beginning.
In this article we’ll take you step by step through the programmatic digital advertising lingo, so you can uncover the mystery of online marketing and get a sweet taste of success.
Let’s start slowly, but no worries we’ll get to the more complicated stuff a bit later.
TS (Traffic Source) – any entity that generates user traffic and can be used in the campaign funnel. The examples of Traffic Sources are: publishers, Ad Networks, Ad Exchanges, Facebook, Google, as well as DSP platforms.
ADX/ADEX (Ad Exchange) – a platform where i.a. native advertising publishers and advertisers meet and trade network traffic using RTB or other programmatic online advertising techniques.
RTB (Real-Time Bidding) – a form of programmatic advertising buying, where media are automatically purchased in an auction-based model, while the website is loading.
API (Application Programming Interface) – a set of programming codes that enables data transmission between one software and another. Simply, it allows users to view or manipulate resources through a predefined set of request messages.
DSP (Demand Side Platform) – a media buying software used by marketers, that aggregates traffic from multiple Ad Exchanges and SSPs. An example of a native advertising demand-side platform is Voluum DSP.
SSP (Supply Side Platform) – a platform that shares the same technology as a DSP. However, unlike DSPs, SSPs are designed specifically for publishers to manage, sell, and optimize programmatic digital advertising inventory.
WL (Whitelist) – a list of placements (widgets, website domains or applications) that an advertiser wants to serve his ads on.
BL (Blacklist) – a list that identifies the placements on which an advertiser does not want his advertising to show up.
URL (Uniform Resource Locator) – a specific address (reference) for a certain resource on the Internet.
HTTP (Hypertext Transfer) -a protocol for communicating with Internet resources. When setting up the campaign funnel using postback URLs, advertisers have to make sure, that the same protocol (either HTTP or HTTPS) is used in all of the links.
HTML (Hypertext Markup Language) – a language for building web pages and web applications. The basic knowledge of HTML is required to create a landing page.
LP (Landing Page) – also known as a lander, a pre-sales page, a pre-lander or a CTA page. It’s a publicly accessible web page that contains CTA link/button to an offer.
CTA (Call-To-Action) – any link or button that enables users to fire up an action, usually a redirection from a lander to an offer.
AM (Affiliate Manager) – the main point of contact & support for the client, purly “partner in crime”.
The Mystery of Media Buying Models
Now that you know the basics we can move to something more advanced. Have you ever seen magical three-letter abbreviations, such as CPM, CPC, CPA, CPS, CPL, or CPI? Simple as it is, all of them stand for media buying models.
CPM (Cost Per Mille) – a pricing model where advertisers pay for a thousand impressions, so every time an ad loads on a page or in an application. It’s one of the most common ways of DSP media buying.
CPC (Cost Per Click), also known as PPC (pay per click) – in this model advertisers purely pay whenever an ad is clicked on.
CPA/CPS (Cost Per Acquisition or Cost Per Sale) – in such case advertisers pay only if a conversion happens. It may be any desired action on the website, such as a sign up or a purchase.
CPL (Cost Per Lead), also called PPL (Pay Per Lead) – simply put, a type of CPA. In this media buying model, advertisers pay when a lead form is completed and submitted.
CPI (Cost Per Install) – this model is reserved for mobile app adverts. Basically, it is like CPA, but just a bit more precise. Advertisers pay whenever the app they are promoting gets downloaded and installed by a user who interacted with an ad.
CPV (Cost Per View) known as PPV (Pay Per View) – a media buying model in which advertisers pay just for a single ad view on the publisher’s site.
All right, you’re halfway there!
One more thing, just in case you are wondering why sometimes you see a little ‘e’ before a media buying model? The answer is here.
It stands for the metric of campaign effectiveness. This specification was created to merge all of the strategies and make calculating true CPM, CPC, CPA and so on possible, regardless of the applied pricing model.
Example? To estimate the eCPM you have to divide the total costs of your ad by the total number of impressions and multiply it by thousand. To provide the eCPC, just divide the advertising costs by the total number of clicks.
The Effectiveness of Media Buying
Let’s go even deeper! There’re also some useful abbreviations linked to the effectiveness of spendings.
ROI (Return On Investment) – one of the key indicators of campaign’s success or failure. It shows the percentage of the money earned as a fraction of the money that was invested.
CR (Conversion Rate) – presents how profitable the offer is, so how many users have converted after clicking on the offer.
CTR (Click-Through Rate) – shows how attractive the offer is to the audience. That’s to say, how many users have clicked on the ad after viewing it on a landing page.
iCTR (Impression Click-Through Rate) – illustrates how attractive an ad is to the audience. So, how many users have clicked on the ad after viewing it on a publisher’s side.
EPC (Earning Per Click) – a special metric, that shows the average revenue for a single click on the ad.
EPV (Earning Per Visit) – an indicator of how much revenue each visit to the website brings.
Time to Sum Up
No doubt that in affiliate marketing and programmatic online advertising it’s important to stay ahead of the curve and speak the industry’s language. The more you know, the more you can understand how it all works and eventually grow your business.
That’s why, don’t forget to keep expanding your knowledge and good results will follow! Still have some questions?
Visit Voluum DSP glossary and find the answer you are looking for!