Performance marketing

What is performance marketing

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Performance marketing is the issue, which deals with online marketing and advertising. In this case, advertisers pay the money to publishers when a definite action is performed.

What is performance marketing?

Performance advertising is based on key performance indicators. The latest might be clicks, leads, conversions, sales or impressions. The main advantage of this CPA model is connected with the fact that you pay only for a desirable action. Thus, if the campaign appears not too successful, you won’t have to pay a lot.

Besides, such an approach opens impressive opportunities for fast optimization. It is connected with the fact that it is based entirely on measurable results. In this case, you work with a specified target audience and try to reach them as quickly as possible. Many marketers claim that online performance marketing combines advertising and innovation. By means of it, it is possible to create win-win opportunities for both advertisers and publishers.

Why is performance marketing effective?

Consider several important advantages of performance-based marketing:

  • – real-time measurement of return on investment (you can estimate your success at any minute, while it would be difficult with other types of marketing)
  • – low risks (as we’ve mentioned, it is required paying only for the actions completed, so there are no dangers to spend your money in vain)
  • – quick launch of a campaign (as there are low risks, there is no need to prove the reliability of your business and spend lots of money on approval processes)
  • – universality (performance-based marketing is a wonderful choice for any kind of business whether it is large or small. It is effective for those, who are experienced in the sphere, and those, who just plan to start their business)
  • – application of innovations (the professionals of the performance marketing are always the pioneers in the application of new ways of advertising. They discover new space, such as social networks, mobile platforms, etc.).

Who can take advantages of performance marketing?

The main users of this approach are various companies, which apply the Internet in order to reach their customer. Among them, there might be:

  • – car dealers
  • – fashion retailers
  • – insurance companies, etc.

It is more popular among the representatives of small businesses with a moderate budget, as it does not require large spending. Besides, performance marketing is preferable for those, who spend most of the time online. The clients of such business owners should also feel comfortable making online transactions (however, it is not obligatory).

It is possible to buy such advertising from any web publishers, who make money not just from the products offered but also from their traffic. Among the most popular platforms for the placement of such ads, we can mention:

  • – Google
  • – Yahoo!
  • – social networks (for instance, Facebook)
  • – blogs.

Note that in order to make performance advertising effective, it is necessary to create high-quality adverts, which will be attractive and understandable for the users. It is also advisable to create a landing page with all the required information concerning your product or service to prepare a reliable basis for the CPA process.


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