On this page I want to share with you some common definitions you are going to need to know in order to have success in Internet Marketing. It’s important to realize that not everyone utilizes all of the different methods by which you can advertise online, but it is important to understand the basic terminology used in the Internet Marketing world. As you have always heard “knowledge = power” so my goal here is to simply give you more power so you have more knowledge and hopefully in turn more success.
Internet Marketing Definitions:
Affiliate – Anyone who sends other companies traffic and customers in exchange for a commission.
Affiliate Link – A hyperlink with a special code that is given to a member of an affiliate program. This link track the referrals the member has given the company and in turn tracks the commissions owed to the affiliate.
Auto-Responder – This term is associated with email marketing. Basically an auto-responder allows you to re-market to people that have already visited your website and opted into your mailing list. One of the best auto-responder programs I have ever seen is Aweber.com and the best thing about it is the entire process is automated. Auto-Responders allow online marketers to really increase their profits and decrease the amount of time spent marketing each day.
Banner Ads – Banner ads are basically ads on a webpage that link to another website or landing page. This is one of the first methods of advertising on the internet. They have different cost depending on where you place the banner ad and how often you want your banner to appear.
Blog – This basically means “weblog” it’s simply a space where you can write online like a diary or a journal. Blogs can be personal or for business use online. Many marketers use blogs to write information about the products or services they are promoting. Blogs are a great way to generate free traffic to your current website. One of the more popular places to get a free blog is Blogster.com.
Click Through Rate “CTR” – The average number of click-throughs per hundred ad impressions, expressed as a percentage.
Conversion Rate – The ratio between the number of visitors to a website versus the number who undertake an action such as a purchase or sign up for newsletter.
Cost-Per-Action “CPA” -This is an online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations. Typically this term is associated with affiliate marketing.
Cost-Per-Lead “CPL” – A payment method which gives an affiliate a flat rate for every lead generated from a link on the affiliate’s site. Typically a lead does not require the customer to make a purchase or input their payment information. These offers typically have a higher conversion rate in affiliate networks.
Cost-Per-Sale “CPS” – A payment method which gives an affiliate a fixed percentage of any sales generated by the company from customers sent by the affiliate. This is a very popular method of payment within many affiliate networks.
CPM Advertising – Stands for “Cost Per Thousand” and basically means the price you are willing to pay per thousand impressions of your ad. This is commonly done when you target advertising on a certain site or do a media buy for your online advertising. CPM advertising can be really profitable, however, you must understand everything about the process in order for it to be successful. Remember this means you are paying simply for your ad to be seen not for a response to your ad.
Domain Name – A domain name is simply the URL or address of a website on the internet. You can register your own domain name in just seconds online by visiting GoDaddy.com
Domain Extension – There are two parts to a domain name. One part is the name itself and the other part is the extension that follows the name. The most common extensions are .com, .net, .org. The extension is meant to denote what the domain name or property is actually about. Countries have their own domain name extension now as well.
Email Marketing – A means of marketing and advertising of products, special promotions, etc. to prospective and current customers by email to generate new or repeat business.
Exit Ratio – This is the number of exits from a page in relationship to the total number of visits to that page. You will find this to be a very key element to watch when you are paying for advertising.
Forum – A term used for an online community where users can read and post comments about a common topic. Forums can also be used to utilize free advertising for your business. Some of the other common terms for forums are web forums, discussion forums, bulletin boards, message boards, discussion boards and discussion groups.
Frequency Cap – This term is closely associated with CPM advertising or media buying. This is the restriction on the amount of times a specific visitor is shown a particular advertisement. Since you are paying for “impressions” you if you don’t want the same person to see your ad 10x a day you can set a cap on the number of times your ad is shown to the same person each day.
Impressions – This basically just means “your ad was seen”. This term is closely related to and used with CPM advertising. Since you are paying per thousand “views” each view is considered an impression.
Inbound Link – This is simply a link from an outside side back to your website. Inbound links can greatly help your SEO efforts for a particular website.
Keyword Marketing – This is simply putting your ad in front of people who are searching using particular keywords and key phrases.
PPC Advertising – Stands for “Pay Per Click” advertising which basically means you only pay when someone clicks on your ad. Many of the major search engines now have this implemented and it’s a great way to market your product, service or business. You no longer have pay to be seen with PPC advertising you simply pay when someone responds to your ad.
Pay Per Impression Advertising – An advertising method where the advertiser pays for each display of their advertisement. Typically this is a banner ad shown on a specific website or a specific network of websites.
Reciprocal Linking – Placing a link on your web site to another site, in return for them placing a link to your site. Reciprocal linking can help you get more traffic both directly and indirectly, as it can increase your site’s popularity.
Run Of Network “RON” – Advertisements (usually banners purchased on CPM basis) which are shown (rotated) throughout the pages of all sites owned by a particular company or controlled by a particular advertising network. This type of CPM placement is normally the least expensive since it is not targeted to a specific page or portion of the company or network you are advertising with.
Search Engine Optimization “SEO”– This simply means optimizing your website for maximum results and rankings on search engines. Each search engine ranks sites according to many different factors. Optimizing your site can increase your ranking and therefore increase your exposure and traffic generated to your website.
Split-Run – This term is used when advertising to refer to testing two different ads on the same network at the same time. The idea is to be able to see the exact effect of individual changes, and work towards the most effective advertisement possible.
Targeted Advertising– Adverts sent or shown to people who are likely to be interested in your product or service. You can target people by many different factors including age, gender, race, geographic location and more.
Targeted Banner Impressions – A term used when doing CPM or Pay Per Impression advertising. This simply means showing your banners on pages that would typically have an audience that would be interested in what your banner ad is advertising.
Targeted Traffic – This means generating visitors or “traffic” to your website that are interested in what you have to offer or promote.
Traffic Quality – The average amount of interest a visitor has in the products or services being offered on the website. You obviously need quality traffic in order to generate leads or sales in affiliate marketing. The more targeted your traffic is the higher quality it typically results in over time.
Unique Visitor – The number of unique visitors or people visiting a website over a specific amount of time.
Viral Marketing – Viral Marketing is a marketing strategy that encourages others to pass on your marketing message for you. This can lead to an explosion of interest in your product or service, and exponential growth rates. This can be simply adding a “signature” at the bottom of your emails promoting your website or by using business cards.
Viral Video Marketing – The act of using video online to advertise and market your product, service or website. Video advertising is extremely “viral” because people tend to have high tendencies to watch video online. YouTube is a great example of how one video can be seen by millions of people very quickly. This is a great way to generate brand awareness and traffic to your website.
To your success,
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