What is Performance Marketing?

Performance marketing is a way for companies to connect with their customers in a more meaningful way than traditional advertising. Performance marketing relies on various methods of connecting with the target audience,

What is Performance Marketing?

Performance marketing is a strategy that uses your business’ message in connection with a desired action, such as a purchase or subscription. As you’ll see, performance marketing can be used for many other purposes besides driving sales through direct mail and email.

Performance marketing is the process of delivering online advertising to consumers in ways that engage them and motivate them to take action. It’s an increasingly important part of digital advertising because it helps brands connect with their audience while they’re online—and it’s also an effective way to measure the effectiveness of campaigns based on how many people respond (by clicking through links).

Advantages of Performance Marketing

  • Performance marketing is a great way to reach your target audience.
  • Performance marketing helps you test your product or service before launching it.
  • Performance marketing helps you build a loyal customer base that will buy from you again and again in the future.
  • Performance marketing will help you identify who your ideal customers are, so that you can build an effective advertising campaign around them.

Disadvantages of Performance Marketing

So, what are the disadvantages of performance marketing?

It can be expensive.

This is by far the most common complaint about performance marketing and it’s not a small matter. If you’re not careful, your budget will quickly spiral out of control as you try to advertise across multiple channels at once. You’ll also need to pay for any additional resources (such as software) that will help you track ROI on all those ads, which adds up fast!

It’s not always easy to measure ROI accurately.

While there are many tools available today that make tracking results easier than ever before—and they’re getting better too—measuring how well each ad performs individually remains difficult because there’s no standard way yet established by industry standards like Nielsen or comScore (the latter being owned by Google).

Types of Performance Marketing Model

There are several types of performance marketing models that you can use to help your business reach its goals. PPC (pay-per-click) is the most common, but there are others as well:

  • CPM (cost per mile)
  • CPA (cost per acquisition)
  • CPV (cost per view)

These models vary by what they charge for, how many people see an ad, and how long it stays on their screen before they click away.

Contextual Advertisement & PPC

Contextual Advertising is a form of online advertising that allows advertisers to show ads on pages that are contextually relevant to their products. In other words, this allows you to target your audience based on what they’re looking at or how they feel at the moment.

Contextual Marketing is an effective way of reaching consumers and converting them into customers through content marketing tactics such as videos, blogs and ebooks which can be delivered through social media channels like Facebook, Twitter or LinkedIn.

Cost-per-view (CPV)

Cost per view (CPV) is a form of pay per view advertising that uses software to track impressions and conversions. It involves an advertiser paying each time an ad is viewed, rather than paying for a specific number of times the ad has been seen by users.

The initiative was born when advertisers realized they could use their own networks to determine how many people saw their ads and what they did after seeing them—and some advertisers wanted more information than just who had seen their messages on social media platforms like Facebook or Twitter. So they began experimenting with new technology like programmatic advertising and data management systems that could access this information in real time from any device at any time—and it worked!

Pay per click (PPC)

Pay per click (PPC) is an online advertising model used to direct traffic to websites, in which advertisers pay their hosts when the advertisement is clicked on. PPC ads are shown to users based on their search terms.

In order for a website/company/blogger to get paid by advertisers for each ad click, they need to have their own unique landing page created with relevant information about the product or service being advertised and its benefits. The ad must also be highly visible so that it will have enough time before someone clicks on it and thus turn into an actual sale for the company selling products or services related with those searched keywords used by potential buyers when searching online searches similar queries related questions asked during research stage before making decision buying any product/service offered by companies offering these products/services related services within industry verticals where target audience resides geographically location located close proximity proximity proximity within certain radius radius radius around specific area area area where majority population lives

Cost per mile (CPM)

Cost per mile (CPM) is a form of performance marketing that charges advertisers for each mile of user interaction with their ads. The CPM is based on the number of impressions, or times the ad is shown to a user.

For example, if you have an ad running on Facebook and it reaches 1,000 people who click through to your website, that’s an impression. If they sign up for your newsletter or download one of your products after reading it, that would be another impression as well—and so on down through all kinds of interactions you can have with visitors on their way out into the world!

Affiliate Program & CPA

Affiliate program is a type of performance marketing in which an online retailer pays commissions to its referring affiliates for each customer that the affiliate sends to the retailer’s website.

An affiliate can be anyone who has been referred by someone else, and that person will earn money if their referral makes a purchase.

Influencer Marketing & EPR

EPR refers to Earned, Paid and Owned media. It’s a marketing strategy that uses earned, paid and owned media to promote a brand or product. EPR is a form of brand marketing that uses earned media (free) to create awareness and drive sales.

EPR can be used for any type of business, from small businesses with just one product line in each geographic area being covered by the influencer’s audience base; all the way up through large corporations with hundreds or thousands of products available worldwide.

Influencer marketing is an online marketing technique that uses endorsements from influencers to focus on specific products. This approach centers on one-to-one engagement with customers, usually using a brand’s existing followers on social media but also through paid advertisements.

Influencer marketing has been around for some time and it can be used as part of your digital advertising strategy or as a standalone tactic that complements your other digital efforts.


Performance marketing is a powerful tool for any brand to use. It can be used by companies in both online and offline environments and has the ability to influence a wide range of consumers. Performance marketing involves developing an understanding of how your customers think, feel and behave before they make a purchase decision so that you can create an effective strategy that fits their needs perfectly.

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