Performance Marketing

What is Performance Marketing?

Performance Marketing is a method of digital marketing that combines paid advertising and brand marketing. When digital marketers implement performance marketing, the advertisers (their clients) typically pay for a specific conversion (lead, sale etc) outcome.

Measured ROI

In order to run performance marketing campaigns, your conversion tracking & metrics should be accurate. This gives marketers the ability to report on exact KPI’s like cost per acquisition (CPA), Conversion Rates and actual ROI if values are tied to conversions.

Benefits of Performance Marketing

The benefits of performance marketing are:

• Advertisers pay for results only.*
• Even though performance marketing is a risky model for digital agencies, it is usually more lucrative as the perceived risks allow for higher outcomes-based returns. For some agencies, this is sometimes a preferred model.

*Sometimes campaigns are run in a combination of models where there are some paid-for elements in campaign setups & management, and then a revenue share on specific outcomes. For example, if a campaign returns more than X results, the agency will receive a higher % of turnover, profit share, or payment per lead.