What is performance marketing?

What is performance marketing?

Performance marketing is an inclusive term for online marketing and advertising programs, is a little different than any kind of online marketing, as in performance marketing advertisers and marketers pay only when specific actions occur to the ads, these actions may include a generated lead, a sale, a click, and much more.

Performance marketing professionals in digital marketing agencies, with media companies, publishers, or otherwise—rely heavily on paid marketing channels including:

In this blog we will talk about  how it does work, and how could you use it in your business. Read the following article to know more about performance marketing. 

How do performance marketing platforms work?

Let’s briefly explain how performance marketing operated on different social media platforms.

As we all know that each social media platform and each channel has a specific audience and marketeers at digital marketing agencies, adopt different types of advertising to reach their audiences, for instance: 

  • Facebook: offers a variety of options that you can show your ads to the people who are using Facebook or Instagram. 
  • Google: it displays your ads in the search results pages. 

It is crystal clear that no channel shows all the ads available all the time to everyone, how could these channels choose what to show? There is a combination of factors that play an important role in the appearance of these ads, and here are them: 

performance marketing

1- Target Segmentation

Each platform offers a different way of ads to target your audience in the form of audience segments. 

2- Bid

Since digital advertising and modern marketing calls upon a factor that is that you agreed on paying to show your ad in a specific place at a specific time for specific people that you have chosen. 

3- Quality and relevance

One of the best things about performance marketing is that it will not show your ads if it doesn’t work and earns low-quality ratings. 

4- Conversion

Conversion is made when audiences become customers and start taking action. So the economics of performance marketing is based on the consumers taking actions. 

If they didn’t take action, the network will not get paid and so your ads get displayed more when it works. 

Performance Marketing & Affiliate Marketing 

Is Affiliate Marketing the Same as Performance Marketing?

Yes, we can tell why there is confusion between the two terms Affiliate Marketing and Performance Marketing because Performance Marketing is a part of the big umbrella of Affiliate Marketing, which includes other types of marketing like Influencer Marketing, Email Marketing, Search Marketing, and any other form of marketing where the marketing partner exchanges sales (or completed desired actions) for commission payouts.

So, What is Affiliate Marketing?

Affiliate Marketing is the term that originated years ago before Performance Marketing and is still used today. 

However, over the past years, the term has implied a much larger picture of performance-based marketing outside of traditional coupon and loyalty partnerships, and it began to include social influencers, advertisers, developers, email marketers, and many more.

Affiliate Marketing is an affiliated brand and product marketing, which has grown into a more innovative, dedicated performance-based strategy that has become a driving force to sales, new customer acquisitions, market expansion, customer segmentation, and high ROI campaigns.

On the other hand, Performance Marketing, which includes the more traditional affiliate marketing basics that are historically known for driving sales through cashback and coupon sites alone, has become so much more than that over the past few years.

When writing an article about a new product or service, that can be shared through different social media channels, these are now examples of the evolution of affiliate marketing to “Performance Marketing” over the years.

So, despite  Affiliate Marketing and Performance Marketing technically seem like the same thing, they still have a different approach to each, and Performance Marketing today includes so much more.

Why Is Performance Marketing Useful? 

There are various benefits when using and adding performance marketing to your growth and online marketing mix. 

In addition to the obvious benefit of building your brand through third-party partners with their own audiences, budgets, and reach increasing your market share, targeted traffic, and audience engagement, you can also reduce your risk, increase your market reach, and decrease budgets while growing your brand.

Performance Marketing is one of the easiest marketing ways to track and measure and be transparent. In fact, digital marketing agencies and brands can now easily see the entire click-to-consume path of each buyer, and understand where to invest more and in which partners, which channels, and produce better results, they can get all the data they want from performance marketing. 

And if you are not a risk-taker, performance marketing is the way for you. Since it is only paid according to some specific actions taking place, the risks are low and the ROI is higher. 

Tips For Performance Marketing Success

1. Use a Good Landing Page & a Good Offer  

A bad landing page will give the wrong vibes to your customer and may drive them away. As well as a bad offer will prevent them from clicking your ad. Test the entire user experience when they get to your website and mobile site.

2. Pick Your Traffic Sources

Focusing on how your traffic is coming from is extremely important with Performance Marketing, Make sure your traffic is coming from reputable sources and locations. 

Customers will think twice before they know that there is more than untrusted advertising you are using. 

3. Tracking and monitoring Are the Keys

Whether it is bunce rates, attribution, desktop, or mobiles, they all give important data points that will help you get a better insight and eventually twerk your plan according to those insights. 

4. Be compliant

If digital marketing is about increasing sales and leads, performance marketing is all about building relationships between brands and publishers, and advertisers.


An Introductory Guide to Performance Marketing