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  advertisement    
An advertisement is any notice, poster or paid announcement designed to attract public attention and patronage.  Many different forms of advertising are available on the Internet including pay per click advertising such as Google Adwords, Yahoo Search Marketing and MSN Live.  Other types of online advertising include banner advertising, pop-ups, ezines, classified ads, newsletters and paid email announcements.  Advertisements are a part of the overall process of marketing and promotion. 
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Adwords    
Google's pay per click advertising program is called Adwords.  This business model was started by Overture.com.  Overture was bought out by Yahoo!.  Now the three main contenders in the PPC world are Google, Yahoo and MSN.  Once Google got a foothold with pay per click it started making changes to the original model set by Overture.  Adwords is far more complicated than the original bidding for position program.  Google has made available an entire learning center where you can get all the details on its Adwords program.  Google Learning Center.
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affiliate    
To affiliate oneself means to become closely connected or associated with something or someone.  In marketing terms an affiliate it someone who promotes and sells another's product or service in exchange for an agreed upon commission. 
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affiliate link
An affiliate link is a special HTML link on a website or in a blog which directs the user to the sales page of a particular website.  If you look at the link you can see than it includes special code which allows software in the destination site to track and give credit based on the purchases made by that visitor.  When someone signs up as as affiliate for a particular service or product they will receive the tracking link to put on their site.
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affiliate marketing
Affiliate marketing is a business model based on revenue sharing in which an affiliate or sales person is given a commission based on performance.  This performance could be based on sales, click-throughs to a website, registration forms filled out or any of a number of online actions agreed upon between the company and the affiliate.  Compensation is usually in the form of a flat fee or percentage of sale.

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copyright 2009 Internet Advertising Dictionary
created by Ultimate Site Promotion