LINK TRACKING is the use of a solution (software or hosted) of keeping accurate track of everything about links such as:
How many people are clicking on a link.
Where they are clicking on the link from (geography + IP address).
Other link tracking details depending on the solution you use.
LINK CLOAKING is the use of a solution (software or hosted) so the text of your link (where the link appears to go) is different from where the link actually goes to. Link Cloaking is usually desired by affiliate marketers because:
Affiliate links look like affiliate links which tend to look ugly, long, hard to remember and suspicious. Here is a typical affiliate link and what it looks like:
affiliate link tracking
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