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Performance Marketing

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Performance marketing is the term given for paid online campaigns, measured with the help of page clicks and conversions to achieve predictable revenue for advertisers.

What is performance marketing ?

Performance marketing is a paid digital marketing strategy to generate revenue through online campaigns. When you see google or facebook ads, you are seeing an example of performance marketing.

An example of performance marketing 

In this online marketing technique Advertisers only pay marketing service providers when objectives have been met or completed such as a click, sales, or lead generation. In other words, it is performance-based marketing technique and the only objective of this is to satisfy the advertiser's goal.

How does performance marketing work ?

Performance marketing works when advertisers connect with marketing agencies or companies to place advertisements for their company with different marketing channels like social media, SEO, content creation, and many more.

Advertisers mainly focus on the below channels for advertisement and pay according to their performance.

Channels for Performance Marketing

  1. Banner Ads
  2. Native Advertising
  3. Content Marketing
  4. Social Media Marketing
  5. Search Engine Marketing
  6. Video Marketing

Few different ways to pay

  1. Cost per click (CPC)
  2. Cost per impression (CPM)
  3. Cost per Sales (CPS)
  4. Cost per Leads (CPL)

Benefits of performance marketing

Targeted : For products or services having hight search demand (eg, golf gloves which has almost 110k searches in 2022) or if you're selling custom t-shirts for brands (eg, targeting facebook group admins of brands), performance marketing would be beneficial.

Measurable: It is much easier to measure which paid online marketing campaign works or not , as its very straight forward to track clicks, conversions and more.

Pay as you go: You control what you pay and when you pay when running paid online marketing.


Q. Is performance marketing same as digital marketing?

Ans.   Performance marketing and digital marketing are not the same. Performance marketing is a digital marketing technique. Paid digital marketing is usually referred to as performance marketing. 

Q. What are the 4 types of marketing strategies?

Ans. The main 4 types of marketing strategies are product, price, place, and promotion.

Q. Is performance marketing same as SEM?

Ans. SEM or Search Engine Marketing is usually confused with performance marketing, but SEM is a subset of performance marketing, usually referred to paid marketing on search engines, for eg, when you run google ads.

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