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Ad Rotation
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The process of rotating advertisements in one banner thus displaying different adverts at any one time.
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Affiliate
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The affiliate promotes the services/products of a merchant in return for a commission.
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Banner
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Banners are links to a merchants website in the form of an image. They come in a number of different shapes and sizes and can be either static or animated.
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Commission
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Commission is the payment that the affiliate receives. They are usually either a fixed amount (i.e. 10p per click) or a percentage of a sale.
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Cookie
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A Cookie is a small file stored on a computer that holds information from a visit to a particular website. Cookies are vital to affiliate marketing as they tell the merchant which affiliate referred the visitor.
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CPC
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Cost Per Click - This is the cost that you pay for each visitor sent to your site from a Pay Per Click Search Engine. With UK search engines, this can range from 10p (+VAT) up to several pounds for competative terms.
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CPM
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Cost Per M - M is the Roman numeral for 1000. This is the cost associated with 1000 banner impressions if you buy advertising that is charged for by impression.
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CTR
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Abbreviation of Click Through Rate. This is the percentage of visitors seeing an advert on your site that actually click on it. For example a CTR of 10% means that 1 in 10 visitors clicks on the advert.
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Deep Linking
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A form of linking where instead of sending your visitors to a merchants homepage, you send them to a specific page (i.e. a product page). This can result in increased conversions.
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EPC
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Abbreviation of Earnings Per (100) Click - This is a measure of how much you earn per (100) clicks to your site. Care has to be taken as some places will quote it as an earnings per 100 clicks and others as the earnings per single click.
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Email Marketing
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A form of marketing where regular emails are sent to registered users advising them of current deals and offers. Care needs to be taken with email marketing to avoid being accused of spam.
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Impression
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The act of displaying a particular banner from a merchant. Used in conjunction to clicks, this will give a measure of how well your website is converting.
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Links
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The connections between the affiliate's website and the merchant. The link contains tracking codes to allow the referring affiliate to be recorded.
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Network
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A company that represents a number of merchants and allows an affiliate to sign up to them from one place. The affiliate will be paid their commission by the network.
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Opt-in Mailing List
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A mailing list where a recipient has agreed to receive emails. Many mailing lists are now double opt-in. The recipient signs up and then has to reply to an email to confirm their subscription.
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PPC
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Abbreviation of Pay Per Click - the payment received or the payment received for or the cost of (depending on whether you are talking about an affiliate program or Search Engine Advertising) a visitor clicking on a link.
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PPC Search Engines
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Search engines where the position of your listing is dependent on the amount that you bid. The bid required can range from 10p up to several pounds depending on the term you are bidding on.
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Skyscraper
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A style of banner (120x600 pixels) that is designed to run vertically down the side of a page.
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Spam
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Unsolicited commercial messages sent via e-mail.
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