Online Marketing Glossary: Contextual Advertising
Contextual Advertising:
- The term applied to ads appearing on websites or other media where the ads are selected and served by automated systems based on the content displayed by the user.
Google has been a mastermind at contextual advertising in the last few years. These ads are very effective because the user is already interested in the particular topic, then relevant ads are served to them. It’s usually a more targeted, easy sell.
Many other advertising networks are working contextual ads that automatically link keywords into their advertising repertoire. This allows for directed keyword ads with little work from the webmaster.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Commission Rate
Commission Rate:
- The rate of income an affiliate receives for generating a sale, lead, or click throughs to a merchant’s website.
Most commission rates, by and large, are percentage based when using the CPS model. Most click through programs or lead gen programs, however, use a flat fee to pay out on leads and clicks.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Tracking Method
Tracking Method:
- The way a program tracks referred sales, leads, or clicks. The most common is by unique Web address for each affiliate or by embedding an affiliate ID number into the link that is processed by the merchant’s software.
This link is the lifeblood of affiliates. Some smaller networks base the tracking ID within the link on the user name of the affiliate. Larger networks with a greater number of affiliates use a unique user ID or website ID number to track links.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Merchant Account
Merchant Account:
- An account with a payment processor for settlement of credit card transactions. Any merchant that takes credit card orders must establish a merchant account.
Most e-commerce websites have logos of the payment processing companies they use that verify the security of using your credit card. The top companies that are used by most websites are VeriSign and Authorize.net.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Hybrid Model
Hybrid Model:
- An affiliate commission model that combines payment options (i.e., CPC & CPA).
Personally, I don’t know of any programs that use this model. All the programs I’ve encountered as an affiliate have used one model or the other. The only time I have seen this is when the program is run on multiple networks, so they run one model on one network and another model on the other.
While I don’t have first hand experience, I’ve been told that eBay offers a hybrid model.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Thousand
Cost per Thousand (CPM):
- The cost metric for 1,000 banner advertising impressions. The amount paid per impression is calculated by dividing the CPM by 1,000. For example, a $10 CPM equals $0.01 per impression.
I remember this being all the rage when I was in college about 6-7 years ago. Now a days there aren’t many programs that offer CPM payment terms, but there are some.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
