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).
Cost Per Acquisition. Typically, the commission paid to the publisher on a last-click basis.
Average Order Value. The value of the product or service that the consumer purchases.
Lifetime Value. A bespoke figure for each advertiser considering the value of the customer from their first purchase and any subsequent purchases they make.
Return on Investment. Profit divided by the total cost.
Return on Advertising Spend. Revenue divided by advertising spend.
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.