Performance marketing is a term used for online marketing campaigns where advertisers pay marketing companies or advertising platforms for results such as clicks or payments. Unlike traditional and organic marketing, performance marketing is specifically used to guide actions and track and measure those actions while attributing the ROI (Return of Investment) ratio of each asset, campaign, or activity. While large companies can spend millions of dollars on branding, most businesses need to focus on the mainline to maintain their profitability. To achieve such profit, using performance marketing as one of the most effective and economical digital marketing methods is very common among online businesses.
Performance marketing could apply to all online businesses no matter the size, small or large; all companies could benefit from performance marketing, increase their sales or achieve other defined results, depending on their marketing goals. However, having a successful performance marketing campaign highly depends on the website on which the digital advertising is ongoing.
Getting to know and understand some of the terms used in performance marketing will give you a better point of view regarding this excellent digital marketing solution.
The first and most beneficial advantage of performance marketing is that the payment is made in exchange for the exact desired results, which improves the number of target audience contacts if done professionally. Additionally, the performance marketing method determines the costs and rewards of your initial investment while improving the level of your branding awareness, your incoming traffic, and your conversion rate.
In performance marketing, some channels are considered more influential with higher accuracy than the others; some of which are