If you own an audience or consumers either directly or indirectly, you are a channel. As an example, on the web, you could be a content website owner / blogger / web application owner.
Alternatively on the mobile medium, you could be a VAS company / Mobile Operator / Kickass mobile application developer / Game developer or owner.
If we speak niche, then you could be the Admin / HR of a corporate company who rewards their employees OR you could even be a house-wife / senior citizen who is looking to monetize shopping online.
As a quick summary, Channels represent Demand
The one who sells physical or virtual goods. Secondly, his consumers can consume the goods either offline or online.
As an example, ecommerce retailers, offline merchants , virtual goods companies etc are all qualified merchants. By using OfferGrid they get access to the channels connected with OfferGrid.
As a quick summary, Merchants represent Supply
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No, not again. I am not going to miss it one more time!