The New Era of Performance Marketing

It’s the new era of performance marketing.

You have heard about digital marketing and most probably have been relying on it as well for your business, paying monthly for the services, regardless of the performance and results. 

But, that’s not the only online marketing available. Performance Marketing is the new kid on the block, with its own set of perks for businesses of all kinds. 

A process rooted in growth, it lets you track your traffic, the performance of your campaigns and measure your success.

So, what exactly is Performance Marketing? And what is performance marketing in digital marketing?

Here’s an overview.

What is Performance Marketing?

Performance Marketing is an online marketing and advertising technique for which you pay only for performance.

This result-oriented marketing plan charges you only when a campaign objective is achieved and you pay only when the desired action is completed.

That is, you pay when links are clicked, leads are generated and sales are made, depending on the outcome expected from your marketing campaign.

Performance marketing is driven by data and it gives a clear understanding of what works over time. Here’s an outline of what your paid media plan or results might look like:

performance marketing ad plan

Compared to traditional marketing in which the investment is made in the hope that advertising will generate leads and make conversions but does not guarantee that, performance marketing is very much a relief.

It was created to improve ROI (return of investments) and decrease the cost involved.

Role of Performance Marketing in Digital Marketing

Increasingly popular, Performance Marketing is a type of digital marketing that brings the control back to you when you advertise your brand or products.

Today, the commercial world is driven by performance. The audience matters, the time matters and even the device matters.

Performance marketing is attracting more attention these days as business owners are increasingly conscious of result-oriented marketing and ensuring ROI.

Performance marketing also allows them to pinpoint their audience in a nuanced way with the aid of digital marketing techniques.

digital marketing objectives

Performance marketing has now claimed a good percentage of online marketing. Businesses are starting to rely more on it to generate leads, make conversions, sales and create brand awareness.

Benefits of Performance Marketing

Performance marketing has many perks compared to other online marketing methods. The main advantages of performance marketing are:

  • It sports low risk for the business in most plans.
  • It focuses on increasing ROI.
  • Performance can be tracked easily.
  • It is 100% measurable.
  • Transparency in payments.
  • Better manageability of campaign budgets.
  • Wider reach in advertising.
  • Can target a specific audience.
  • Creative contributions from advertising partners.

Pricing in Performance Marketing

Performance marketing has its own lingo. There are different types of pricing models in Performance Marketing. They are:

  • Cost Per Sale of the product being advertised.
  • Cost Per Install of your mobile app.
  • Cost Per Lead when an individual submits their contact information after interacting with your advertisement, generating a lead.
  • Cost Per Click when your target audience clicks on your advertisement, as used in many engagement campaigns.
  • Cost Per Video/View and Cost per Completed Video/View when somebody watches your video.
  • Cost Per Thousand or “Mille” which is paid for every 1000 impressions and very commonly used in performance marketing.

If you want to learn more digital marketing terms, check out our Digital marketing glossary.

Channels in Performance Marketing

There are different online advertising channels you can leverage for Performance Marketing.

  • Display Advertising which relies on media formats like images, audio, video, and some text to convey their message. It is a popular way of monetizing on blogs, websites and other publications and very commonly seen.
  • Native Advertising which blends the advertisement into the channel environment, through intuitively designed images, content and voice, emphasizing on the unpaid content surrounding it. It doesn’t demarcate the advertisement from the channel content so that the users do not realize it is an ad in disguise.
  • Search Engine Marketing which shows ads to potential customers based on their search terms and keywords typed into search engines. This is a very effective and commonly used channel.
  • Social Media Marketing which uses advertisements run on social networking sites like Facebook, Twitter, Instagram and LinkedIn. This attracts traffic, improves visibility, and in turn customers.
  • Affiliate Marketing through influencers and popular bloggers who generate traffic, leads and sales for your company in return for compensation.

Platforms in Performance Marketing

online advertising platforms

Some examples of platforms in various channels that you may already know are given below:

  • Display Advertising: Google Display Netwrok, Celtra
  • Native Advertising: Facebook audience network,
  • Search Engine Marketing: Google Ads
  • Social Media Marketing: Facebook, Instagram, Twitter, Reddit, Pinterest
  • Affiliate Marketing: ShareASale, MaxBounty

Adopting Performance Marketing For Your Business

A strategic online marketing plan is inevitable for businesses in today’s world.

If you are seeking to integrate Performance Marketing alongside your brand’s digital marketing, it is necessary to study the various types of performance marketing and tactics in order to choose the best plan for your business.

To introduce performance marketing to your company, you need to weigh the organization’s goals against the perks and quirks of performance marketing. Click To Tweet

You must try to envisage the potential gains performance marketing can generate for your company against the possible risks in the new approach.

  • Does your company profit from strategically planned long term digital marketing or does it get more leverage from result-oriented performance marketing?
  • Which marketing model suits your brand, audience and products/services best?
  • Would performance marketing suit your company during a crisis?
  • Does it cater equally well to both the short-term and long-term goals of your company?

The Conclusion

These are some aspects you need to critically think before deciding the type of marketing you need and whether Performance Marketing is a good fit for you.

You should also consider the distribution of your business, your online presence, the customer experience, your budget and revenue, and the technical necessities.

Want to know more possibilities in Performance Marketing for your business? Contact us. Let’s talk about it.


performance marketing business growth



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