Konigle

Performance Marketing

Contents

Performance marketing is the term given for online paid campaigns in which advertisers (sellers like you) pay marketing agencies or advertising platforms (e.g., Facebook, Google Ads) for results achieved, such as clicks or conversions.

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.

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 a performance-based marketing technique, and the only objective of this is to satisfy the advertiser's (seller) goal. As you go towards your goal, Konigle provides you with simple-to-use, powerful seller tools to help grow your store cost-effectively.

How does performance-based 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)

What are the benefits of performance marketing?

  • Targeted: For products or services having high search demand (e.g., golf gloves, which have almost 110k searches in 2022) or if you're selling custom t-shirts for brands (e.g., 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 it's 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.
Author
Published
November 22, 2024
Updated
November 22, 2024

Frequently Asked Questions

The difference between digital marketing and performance marketing comes from the different approaches. Digital marketing elements like paid search ads, social ads, and display ads are part of a successful performance marketing technique, but traditional digital marketing mostly focuses on vanity metrics, like audience reach, impressions, or likes.

SEM, or search engine marketing, is usually confused with performance marketing, but SEM is a subset of performance marketing, usually referred to as paid marketing on search engines, for example, when you run Google ads.

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