2. What is Performance Marketing?
Performance marketing is a results-oriented digital
marketing strategy tailored for companies aiming to
connect with their target audience at scale. This
approach revolves around payment contingent on user
interactions with the content.
You can learn more about performance marketing and
various other techniques by joining performance
marketing course in kerala
3. How Performance Marketing Operates
advertisers place their ads on various channels, with compensation linked to the ad's
performance. Several payment models are employed in performance marketing:
● cost Per Click (CPC): Advertisers remunerate based on the number of clicks their ads
receive, making it an effective method to drive traffic to their websites.
● Cost Per Impression (CPM): Impressions denote ad views, and with CPM, advertisers
pay for every thousand views. For instance, if 25,000 users view an ad, the advertiser
pays a rate multiplied by 25.
● Cost Per Sale (CPS): CPS entails payment only when a sale is generated through an
ad. This model is commonly utilized in affiliate marketing.
● Cost Per Lead (CPL): Similar to CPS, CPL involves payment when a user signs up for a
newsletter or webinar. It serves to generate leads for follow-up and potential sales.
● Cost Per Acquisition (CPA): CPA shares similarities with CPL and CPS but is more
general. Advertisers pay when users complete a specific action, which could
encompass making a purchase, sharing contact information, or visiting a blog.
4. Prominent Performance Marketing Channels
Effective performance marketing relies on utilizing various channels to drive traffic. Here are five key
performance marketing channels:
Banner (Display) Ads: Display ads are visible on platforms like Facebook and news websites. Though ad
blockers and banner blindness have affected their appeal, companies still find success by incorporating
interactive content, videos, and compelling graphic design.
Native Advertising: Native ads blend seamlessly with the appearance of web pages or sites, promoting
sponsored content in an organic manner. They can be found on platforms like YouTube and Facebook
Marketplace, where users may not readily distinguish them from organic content.
Content Marketing: This approach focuses on educating the audience and providing valuable
information. Content marketing includes blog posts, case studies, e-books, and more, aiming to place a
brand in a context relevant to the user's needs.
Social Media: Social media offers a haven for performance marketers. It enables reaching users and
facilitating organic sharing of sponsored content, extending the reach beyond the initial post. Platforms
like Facebook, LinkedIn, Instagram, and Twitter are instrumental in reaching new customers.
Search Engine Marketing (SEM): SEM is vital because most online research occurs through search
engines. Performance marketers predominantly concentrate on cost-per-click (CPC), with organic SEM
relying on content marketing and SEO-optimized landing pages.
5. Examples of Performance Marketing
● Performance marketing encompasses a range of strategies:
● Pay-Per-Click (PPC) Advertising: Advertisers pay for every click that leads users to their websites, primarily using
platforms like Google AdWords.
● Affiliate Marketing: Businesses reward affiliates for visitors or customers generated through their marketing
efforts. Affiliates promote products or services on their blogs or social media, earning a percentage of the sale
when someone makes a purchase by clicking on it
● Email Marketing: While not often categorized as performance marketing, email campaigns can be performance-
driven, with metrics such as open rates, click-through rates, and conversion rates analyzed for optimization.
● Search Engine Optimization (SEO): SEO, while not paid, is a crucial part of performance marketing, assessed by
keyword rankings, organic traffic, bounce rates, and more.
● Social Media Advertising: Platforms like Facebook, Instagram, Twitter, and LinkedIn offer precise targeting
options, with performance tracked through engagements, clicks, impressions, and conversion rates.
● Influencer Marketing: Brands collaborate with influencers to promote their products or services, measuring
performance through engagements, impressions, clicks, and sales via unique promo codes or affiliate links.
6. Advantages of Performance Marketing
● Payments for Results
● Better Planning
● Discovering New Formats
● Tracking Performance