We define an affiliate marketing transaction as: ‘an economically motivated exchange of products and services, in which the end-user, marketer and affiliate are involved. This definition implies that we want to register when the end-user interacts with the marketer through the affiliate. In further operationalising it, we define transactions according to the four possible ways in which sales and/or marketing can take place in an interaction where all three parties are involved through use of the World Wide Web: (1) impression, (2) click, (3) lead, and (4) sale. We characterise a specific transaction according to the highest category that defines it.
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An impression occurs when an end-user is exposed to some form of marketing message from a marketer through a website/affiliate. Operationally, we define it as a hyperlink to the marketers website on a web-page that an end-user (client) requests. The hyperlink can be anchored into text or images. An impression is not registered as part of an affiliates performance in our definition of affiliate marketing.
A click occurs when an end-user actively responds to a marketers message. Operationally, we define it as occurring when the end-user activates the hyperlink in an impression, thus being transferred to its destination. Furthermore, it can also be defined in terms of a unique visitor. Unique visitors are registered once per a defined time period.
A lead is an action performed by the end-user on the marketers site that is registered in the marketers affiliate programme, and which the marketer can follow up on in the future. Operationally, we define it as when an end-user submits data about him or herself on request from the marketer.
A sale is when the end-user confirms an order on the marketer’s site. Operationally, we define it as the transferral of money from the end-user to the marketer (not before), in return for the goods ordered within 14 days after the end-user transfers through a hyperlink from the affiliate to the marketer.
The user gets exposed to a product or a service in the context of the environment he or she is in, when using the Internet, and the marketer pays the affiliate based on predefined performance criteria.
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