Performance marketing is a comprehensive term that is used to denote online marketing and advertising programs where advertisers are required to pay only when a specific action occurs.
These actions can include:
- Generated lead
- Click
- Sale, and more.
Performance Marketing ensures that brands pay for tangible results, as opposed to a “ spray and pray” approach.
Some of the top performance marketing channels include:
- Native advertising
- Sponsored advertising
- Affiliate marketing
- Social media advertising
- Search engine marketing
The most commonly measured actions when it comes to performance marketing include:
- Cost Per Impression (CPM)
- Cost Per Click (CPC)
- Cost Per Sales (CPS)
- Cost Per Leads (CPL)
- Cost Per Acquisition (CPA)
Clearly with performance marketing your marketing efforts are ROI driven, while you also get to watch results in real time.
