Performance Marketing is a form of marketing that brings measurable results, only paying when a specific result occurs.
With performance marketing, marketers and advertisers pay only when a specific action occurs, such as a sale, online lead, or link click. It is a performance-based model, whereas, with traditional advertising and marketing, the advertiser pays a flat fee regardless of the outcome.
Performance marketing can be used through various marketing tools and platforms across several channels.
Search engine marketing is a performance marketing tactic used to drive traffic to your website by running text advertisements on search engines like Google and Bing. These ads are run by bidding on keywords and setting up your site’s ad text and web pages. You can measure the performance of your search campaigns through platforms like Google Ads. This is a pay-per-click model, meaning that advertising companies can select how much you are willing to pay for a click on their website.
Social media advertising is another well-used performance marketing tactic. Platforms like Facebook, Instagram, and LinkedIn offer businesses and brands access to audiences through cost-per-click (CPC) performance models to display ads on social feeds.
Native ads are designed to match the look of the media that appear so they don’t disrupt the user’s browsing experience. Because of this, they are considered to be more effective than other forms of advertising. Native advertising can be easily measured through specialized native ad platforms like Taboola and Outbrain.
Influencer marketing is a form of marketing in which brands partner with an individual with a strong online presence and following. Influencers leverage their social media accounts to promote products or services, including platforms like Instagram, YouTube, TikTok, or Twitter.
Referral marketing is another performance marketing tactic to build long-term trust and customer engagement. With a “refer-a-friend” campaign, you will typically have a referral link or a code that can be tracked online. A company might offer customers a referral incentive or discount for referring new customers to their business.
Content marketing is another performance marketing tactic that is leveraged. Forms of content marketing can include blog posts, articles, whitepapers, e-books, videos, and podcasts. All these forms of content can be measured by a specific result, whether page views, downloads, or another measurable action.
To best measure marketing ROI, there are several ways to determine the performance of marketing plans and campaigns. Here are some common metrics used to measure performance marketing:
Compared to traditional marketing, performing marketing provides the following benefits:
By analyzing these metrics, businesses and brands can evaluate their marketing effectiveness and identify areas of improvement to make the necessary adjustments needed to boost their marketing.
Compared to traditional marketing models, performance marketing offers many advantages. Is it right for your brand? Consider using the performance marketing strategies and tactics listed as part of your marketing plan.
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