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With worldwide annual spend on digital advertising surpassing $325 billion, it’s no surprise that different approaches to online marketing are becoming available. One of these new approaches is performance marketing or digital performance marketing. Keep reading to learn all about performance marketing, from how it works to how it compares to digital marketing. Plus, get insight into the benefits and risks of performance marketing and how it can affect your company’s long-term success and profitability. Performance marketing is an approach to digital marketing or advertising where businesses only pay when a specific result occurs. This result could be a new lead, sale, or other outcome agreed upon by the advertiser and business. Performance marketing involves channels such as affiliate marketing, online advertising.
The main thing that separates performance marketing from other types of marketing is the way businesses pay for their campaigns. Rather than paying up front or by month, advertisers pay when a specific action takes place. You might enlist a marketing company’s help to bring your branding to more individuals by having these marketers promote your business to prospective customers. The hope is that users will complete a form to learn more about your company and become a lead.
Channels Used in Performance Marketing
Performance marketing may involve using various types of digital marketing and advertising channels, including the following. Display ads include banner ads and other types of visual advertisements that display on websites your audience visits. These ads typically include a visual element with copy and link to a landing page where users may convert into leads or customers. Using online advertising platforms such as Google Ads, you can target your ads to users whose interests, demographics, or online activity matches those of your target audience. Under the marketing model, you would only pay when someone clicks on your ad, converts on your landing page.
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