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What is Performance Marketing? Why Is It Important Top Performance Marketing Channels How Performance Marketing Works How to build a performance marketing strategy

What is performance marketing?

It is a type of online advertising in which marketing efforts are tracked and measured for their performance. It's an effective way to measure the impact of your marketing campaigns, allowing you to make more informed decisions about where to invest resources.

Why is it important?

Performance marketing is a cost-effective way to reach the right audience with the right message at the right time. It allows them to measure their marketing efforts, track the effectiveness of campaigns, and make well-informed decisions about where to allocate their resources. It can be used to increase customer engagement and loyalty, as well as drive sales and lead generation. It also allows for better targeting of potential customers based on their online behavior and interests.

Performance marketing vs programmatic marketing

Performance marketing is a type of online advertising where the advertiser pays for each action taken such as a click, lead or sale. Programmatic marketing is an automated process for buying and selling digital media like display ads, video and audio ads. It uses technology to determine the best placement of an ad in order to optimize performance.

Performance marketing vs affiliate marketing

Performance marketing focuses on driving action, such as sales or leads, from an audience in return for a commission. Affiliate marketing is more focused on building relationships with influencers who can help drive traffic and sales to a business’s website or product page. Performance marketing typically yields quicker results than affiliate marketing, while affiliate marketing can provide longer-term benefits such as establishing trust with customers.

Performance marketing vs brand marketing

Performance marketing is typically short-term in nature and includes tactics such as pay per click (PPC) ads, search engine optimization (SEO), email campaigns, and more. Brand marketing is more long-term and focuses on creating an emotional connection with customers through content, visuals, video, audio, and more.

Performance marketing vs digital marketing

Performance marketing focuses on the outcome or result of the campaign, while digital marketing is more concerned with building brand awareness. Performance marketing will typically involve tracking sales or leads in order to measure success, while digital marketing takes a broader approach by using content, SEO, and social media to increase visibility and engagement with customers.

Top Performance Marketing Channels

1. Banner (Display) Ads

They are used by businesses to increase brand awareness, generate leads and sales, and drive traffic to their websites. Banner ads are typically displayed on websites or in apps and come in various sizes and shapes. They can also be interactive, allowing users to click through to the advertiser’s website or other destinations. Banner ads are a cost-effective way for businesses to reach large audiences quickly increasing conversions and overall ROI.

2. Native Advertising

Native ads are often seen on websites, apps, and social media platforms such as Facebook, Twitter, Instagram, and LinkedIn. They can be used to generate brand awareness, drive traffic to a landing page or website, or even increase conversions.

3. Content Marketing

A content marketing channel is any type of platform or medium used to distribute information in the form of articles, videos, podcasts, images, infographics, and more. Content marketing channels can be used to target specific audiences and build relationships with them by providing helpful and valuable content that educates them about products or services.

4. Social Media channel

a platform to share opinions and information, build relationships and even drive traffic to websites. The various features of these channels allow users to customize their profiles, interact with others in real-time, post interesting content, and even sell products or services.

5. Search Engine Marketing (SEM)

It involves a combination of techniques including pay-per-click (PPC) advertising, organic search engine optimization (SEO), and link building to ensure that your business appears prominently in search engine results.

How does performance marketing work?

Performance marketing is a type of digital marketing that focuses on measurable results. It is based on a performance-based model wherein the advertiser pays only when the desired outcomes are achieved, such as leads generated or sales made. This allows marketers to track the success of their campaigns, while also providing greater control over their budget.

1. Cost-Per-Click (CPC)

CPC can target specific audiences by setting up campaigns tailored towards certain demographics, interests or topics that match their desired audience. It allows for more accurate tracking and reporting of results, which helps advertisers measure the success of their campaigns.

2. Cost Per Impression (CPM)

It is a type of advertising pricing model used to determine the cost of digital advertisements. It is calculated by dividing the total amount spent on an ad campaign by the total number of impressions it received. CPM is often used by advertisers when they want to target a specific audience or demographic.

3. Cost Per Sale (CPS)

It is a measure of how much money it costs to generate a sale for a product or service. This figure can be used to help businesses understand their pricing structure and whether they are achieving value for money from their products or services. CPS provides a helpful insight into the relationship between cost and revenue, allowing businesses to make informed decisions about how best to price their offerings.

4. Cost Per Lead (CPL) in performance marketing

It is calculated by dividing the total cost of advertising by the number of leads generated. CPL can be a great way to assess the effectiveness of an advertising campaign and track its return on investment (ROI).

5. Cost Per Aquisition (CPA)

CPA can be used to measure the success of different campaigns, track lead generation sources, as well as evaluate the effectiveness of different marketing channels. Businesses are able to make informed decisions about where to allocate resources in order to maximize their return on investment.

How to build a performance marketing strategy

1. Establish your campaign goal

The goal should be concise, measurable and achievable. It is also helpful to have a timeline in place for when specific milestones should be reached within your campaign. By setting achievable goals and timelines you will have a better chance of reaching or exceeding your desired result. Additionally, it is important to consider who your target audience is and how best to reach them with the message of your campaign.

2. Choose your digital channel

Depending on which type of business you have, you should consider which channel would be most effective in terms of increasing brand awareness and driving sales. For example, if you own an e-commerce store, SEO would be a great way to increase website visibility and drive more traffic to the store. If you are a B2B company, content marketing might be better suited for your needs.

3. Create and launch the campaign

Once you have identified the right channels, you need to develop a strategy that will get your message across in an engaging way. You also need to consider the budget for the campaign and create content that resonates with your target audience. Lastly, you'll need to make sure that you launch the campaign at the right time in order to maximize its effectiveness.

4. Measure and optimize your campaign

It allows you to track the performance of your campaigns, analyze key metrics, and identify opportunities for improvement. By doing this, you can ensure that your campaign is running efficiently and effectively and that it reaches its intended audience. There are a variety of tools available to help you measure and optimize your campaigns, from analytics to A/B testing and more.

5. Handle potential pitfalls

Having a plan of action in place can help ensure that any issues are quickly and effectively addressed. The best way to prepare is to anticipate potential risks before they arise, and create strategies for how to handle them. This includes researching the situation thoroughly and staying up-to-date on any related news or developments.


We hope our article has provided you with a better understanding of the fundamentals of performance marketing. With this knowledge, you can now confidently plan and launch your own performance marketing campaigns. To get started, why not contact us to start developing a custom strategy that suits your business goals.

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