Performance Marketing

Performance marketing is a type of digital marketing campaign in which the budgeting and decision-making are driven primarily by the measurable results of that campaign. Performance marketing is based on an active, iterative feedback loop: run campaigns, see what works, double down, repeat.

Unlike traditional marketing where a brand would pay for ad space regardless of the performance of that campaign, with performance marketing the advertiser only ever pays for results.

How does Performance Marketing work?

  • The brand or advertiser

    This is the company looking to generate leads or sales through its marketing efforts.

  • The Publisher

    This is the company or individual running the ads on their web properties or within their apps.

  • The Network

    The third-party platform that connects the advertiser with the publisher(s) and manages the payments and tracking between them.

  • Outsourced Program Manager

    These firms provide all the necessary services to run a successful campaign on behalf of the advertiser.

Measurement & Attribution

You can track and measure performance marketing based on any agreed metric, but the following are the most popular

  • CPC (Cost Per Click)

    You only pay when someone clicks on your ad. CPC is the default attribution model across many channels, as it requires low effort from the user. The cost of each click is determined by competition between all advertisers competing for the same audience within the platforms.

  • CPL (Cost Per Lead)

    With CPL, you measure performance based on the capture of a lead; i.e customer information such as an email address or a phone number, often obtained through offering people valuable content (ebooks, white papers and templates) in exchange for contact information.

  • CPA (Cost Per Action)

    A marketer and an audience owner, for example, a blogger, would agree on a desired action (purchase of a product, submission of a ‘get demo’ request, etc.), the audience owner would then introduce the marketer’s product to their audience and be compensated if the agreed upon action is completed.