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What is performance marketing? How to implement this strategy effectively

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1. What is Performance Marketing?

performance marketing

Performance marketing is a discipline in which an advertiser pays only for the results they get.

Corporate marketing departments increasingly rely on performance optimizers because they know their investments will fulfill their criteria; One element, in more traditional marketing agencies, is often left in the air.

These goals often involve getting a response about something in the audience of the parody. These responses include, among other things, subscribe, like, share, subscribe or sell.

Performance marketing owns the immediate pay for results; (not for clicks/impressions). The factor that determines whether a campaign is running low or not is the real data. This data is collected by a tracking system that saves clicks, sign-ups, sales, or conversions with only real space.

2. Features of Performance marketing

Many advertisers still have doubts about what the actual marketing performance is. Most likely, this is due to the fact that it’s a relatively new term encompassing all methods of marketing.

Some people confuse performance marketing with affiliate marketing. Although they share some of the same concepts, the latter is truly a tool and technique for marketers to grow their work on in performance marketing.

These campaigns are launched in a digital environment (more and more on mobile platforms) to achieve measurable results. However, these campaigns are different from branding or brand awareness campaigns. To track user activity, one can use cookies, popularity pixels or conversion pixels.

3. The advantages of Performance marketing

a / Easy to measure ROI

Classic CPM and CPC models provide cost associated with results; However, their actual relationship to sales is much more ambiguous. In the case of CPM, we can only know the number of times a given ad was shown. However, the downside is that we cannot guarantee that a person actually saw it. In the case of CPC, we can know who visited our site after a click, but, this KPI doesn’t tell us what happened next: that person left the page without reading it. Do they continue to switch to advertising channels? However, by tracking these actions with cookies or pixels, you can see what each user is actually doing on your website or landing page.

b / Goals based on conversions

performance marketing

These goals can be anything from sales to sales and let us know what benefits the whole strategy can benefit from. A few examples are 1,000 sales conversions with an average value of $ 50, or 5,000 downloads from a form with a 20% likelihood of a sale. This way, we will be able to honestly evaluate our ROI.

c / Better optimization

Improving metrics makes it possible for us to continuously optimize campaigns. If we know that certain actions are providing better results, we can increase them by adjusting the budget accordingly. Also, we may skip any action that doesn’t contribute to the conversion. Additionally, since technology allows us to measure results in real-time, we can establish continuous controls to refine campaigns or stop them. With regard to brand advertising, the result is a continuous process of improvement.

d / Opportunity cost optimization

This means that advertisers no longer invest in campaigns without knowing how the results will turn out. With performance marketing, the risk is minimal and allows you to estimate the cost per campaign.

e / Effective budget management

f / Expanding channels

Their performance marketing strategy shows their potential through multiple online channels: social advertising, email marketing, content marketing and/or display marketing.

4. Reasons to invest in Performance marketing

Still not sure? If so, here are 5 reasons to invest in performance marketing right now. The following information comes from a study conducted by Cake Marketing.

The digital marketing and advertising segment is the fastest-growing segment.

Every $ 1 invested yields $ 11 in return.

We recommend that 93% of businesses hire a performance marketing company or implement intermittent performance optimization strategies in their own marketing departments.

In converting leads from visits and pay-per-action (PPA), the income opportunity will be achieved with mobile strategies,

Thanks to technological advances in artificial intelligence, performance marketing is likely to increase efficiency. AI will also give us a better understanding of how to increase ROI and optimize campaigns in real-time.

5. Recommendations

Recently, Captio did a study called The new normal: Performance Advertising Dires that worked with 152 marketers from the US, UK, Germany, and France. The top recommendations from the study are:

Implement performance marketing strategies that help differentiate you from your competition. This is even more true in an age when the discipline is still emerging and still in the process of spreading throughout Spain.

Advertising agencies are implementing performance marketing into their strategy because they provide better ROI.

No longer is that performance marketing is just a fad; that is the norm. 47% of respondents take retargeting actions (49% in e-commerce) and 54% focus on campaigns to deliver personalized ads to their consumers.

46% of performance marketing cases consist of multi-device and multi-channel elements. Included in these elements are mobile web, in-app advertising, email, and social media.


In order to choose the right marketing channel for you, focus on the end goal. Work backwards from where you want your customer to end up, and see what channels best fit that journey. Additionally, try and see yourself from the buyerโ€™s perspective. What do they want from you?

Should readย How to find the potential customer?

Thank you
Leadee.ai Team
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