Terminology

When launching your affiliate program, you will come across a myriad of affiliate marketing terms and abbreviations. Below are some of the most common terms you will come across. We have also included a full glossary for you to download (bottom of page).

CPA

Cost Per Acquisition. Typically, the commission paid to the publisher on a last-click basis.

AOV

Average Order Value. The value of the product or service that the consumer purchases.

LTV

Lifetime Value. A bespoke figure for each advertiser considering the value of the customer from their first purchase and any subsequent purchases they make.

ROI

Return on Investment. Profit divided by the total cost.

ROAS

Return on Advertising Spend. Revenue divided by advertising spend.

CR

Conversion Rate. Sales divided by traffic (clicks) *100.

Click Path Analysis

Whilst not actually a measurement metric, some advertisers consider the place in the chain or influence that affiliate activity has as an important metric when running campaigns.