How to get started with performance marketing

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The Internet has forever changed the way consumers search for and purchase products. Undoubtedly, it also completely changed the company’s advertising and sales methods. Today’s marketers have the ability to collect activity data 24/7 and measure the results as they appear. Attribution was almost impossible in the past, and now data transparency allows marketers to optimize their activities for better performance. This is why it is called performance marketing.

What is performance marketing?

Performance marketing refers to specific channels and strategies where a business only pays when a goal has been achieved. For example : a lead, sale, downloaded. Performance based marketing is exactly that it’s marketing based on performance not all digital marketing channel have this option but we will briefly go through a few example.

Performance marketing channels

i) Search Engine Marketing (SEM) is a performance marketing channel as you can set a target cost and then pay only when you achieve that target cost and then pay only when you achieve that target but unlike affiliate and influencer marketing the setting of doesn’t always mean that you will achieve it. It will lie on automation to bid more effectively for you on the search engine but if your targeting is incorrect or product or services not competitive for the website is not use friendly then you might not be achieve that you might achieve the number of leads that you will looking for but not at the cost you will looking for.

ii) Implementing affiliate marketing needs an existing affiliate network or one that business create itself affiliate network handles lot of their admin when it come to managing affiliate so payment of those or connecting of those people etc. Affiliate when on that network so called applied to market your business and the business pays a flat fee or commission only when their is conversion this could be a lead, a sale or a click etc but is a flat fee it’s not something that going to fluctuate.

iii) Influencer marketing which is very similar to affiliate marketing with the main difference being the major ability of the influencer efforts things like that not always the easiest to track especially when it comes to objective like awareness and engagement in terms of their effect on the bottom line so how many of those people who became where and engagement with some on social media over ever that influencer is what lead them or how much of those people lead to a sale or lead or something more meaningful that is really hard to track when it comes to that aspect of marketing.

iv) True performance marketing encompasses a variety of strategies and analysis and really any channel can be a performance marketing channel as long as you optimizing for making decisions based on performance of the objective you or trying to reach.

Performance Marketing types

With new technologies and changes in consumer behavior, performance marketing develops over time. In today’s results-oriented world, digital marketing can “find the right people with the right equipment at the right time.” The available positioning tools and options have been significantly expanded, providing performance marketers with more choices than ever before to create influential marketing campaigns for different audiences and different goals.

SEM or search engine marketing is an important part of effective marketing and it is definitely worth it. SEM places paid advertisements on search engine results pages (SERPs). This is very effective because it promotes the product or service that the user is looking for when the user’s intention is good. A great opportunity to get their attention and interest. Check out this excellent guide to SEM.

Another performance marketing strategy that has gained attention is native advertising. Native ads are more effective than display ads because they don’t look like ads, and they don’t interfere with the user’s browsing. Use tools such as the Outbrain Amplify dashboard to easily measure native ads. If you choose a high-quality network, a high-quality publisher site can serve great ads and help you get high-quality traffic and audiences.

Why is performance marketing important?

Analytics and attribution are increasingly more greater handy for state-of-the-art manufacturers throughout industries and sectors. Afterwards, obtaining a powerful ROI for every advertising budgets and their corresponding channels is an increasing variety of necessary.

Therefore, there must be an organization dedicated to delivering results, because through the successful use of analytics, attribution and channels, brand marketers can report real results in real time and track traffic and sales they drive.

E-commerce and B2B brands alike have the benefit of these channels, whether or not they’re changing sales or making an attempt to build a possibility list by approach of Associate in Nursing email promoting lead capture form. Through this method, running at a cost-per-lead or ROI goals create the program a lot of economical and more scalable.

How to measure performance marketing?

The determinant of the execution of marketing is ROI (return on investment)​​-each action and action is measured, reported and analyzed using predefined KPIs. This will help you understand and optimize the performance of your campaign to increase efficiency. To make digital marketing successful, it is important to pay attention to it regularly. There are many performance tuning tools on the market, but whatever you choose, give your campaign time to collect data. The more accurately and efficiently you can optimize.

These are some of the most important indicators and KPIs widely used in performance marketing:


CPM stands for Cost Per Mile, or Cost Per Thousand, and it’s miles the fee the advertiser will pay for one thousand impressions of a digital advert. In different words, it’s miles the rate for each one thousand instances an advert is proven to viewers. CPM does now no longer degree an movement taken via way of means of viewers; it handiest determines the rate of having the advert proven. Some overall performance entrepreneurs are focusing much less on CPM and extra on metrics which have a concrete, movement primarily based totally meaning.


CPC is the price paid for each click on your ad. CPC is a better interaction metric than CPM because the viewer took action and actually clicked on the ad. A higher cost-per-click usually means a higher conversion value. For example, luxury car brands may charge higher cost-per-clicks and target a much smaller audience of potential customers who may purchase expensive cars. The cost per click is more expensive, but the potential return on investment is much higher.


CPA stands for cost per action, and measures the effectiveness of your campaign based on the specific expected actions your target group should take. For example, the behavior of potential customers is considered the most important tangible and measurable result, which is why CPA is also the most important One of the important and most popular indicators.


This indicator focuses on the expected lifetime value of an individual customer in the entire relationship with the brand or company. LTV uses best practices such as predictive analysis to estimate its expected costs based on the current activities of reference customers. As indicators become more and more complex, LTV is quickly becoming a popular indicator because it can help marketers plan overall strategies to achieve the ultimate goal of increasing ROI.

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