How Performance Marketing Can Help You Grow Your Business
What is Performance Marketing?
Performance marketing is a method of interactive advertising where advertisers are paid only when a specific action is taken. Advertisers and marketers are becoming more and more aware of confirmable consumer actions as part of their digital advertising efforts. Performance marketing companies create advertising campaigns with the help of marketing automation (learn more about this at Salesforce) with the objective of driving specific actions, and advertisers only paid when that action was completed.
Online performance marketing is preferred by companies that use the Internet to reach customers. Also, performance marketing ads are particularly attractive to small businesses with smaller budgets. By purchasing cost-per-action (CPA) ads, they can be confident that every advertising campaign leads to a positive return on investment.
Performance marketing is an important part of digital marketing due to the tracking capabilities of the Internet.
In performance marketing context, publishers or ad networks compensation may be based upon:
Cost per action or CPA (any action agreed by publisher and advertiser)
Cost per sale or CPS (flat fee or sales commission)
Cost per lead (often based on filled webforms)
Cost per click
Cost per phone calls
Cost per download or install (game and software industries)
What Makes Performance Marketing Special?
Performance Marketing is a combination of advertising and innovation that helps retailers and affiliates grow their businesses in ever-changing ways. Campaigns are highly targeted for each retailer in such a way that everyone can be successful. Performance marketing done right creates win-win opportunities for both retailers and affiliates.
What Makes Performance Marketing Different from Other Forms of Advertising?
Unlike other forms of traditional advertising where fees are paid up front and do not depend upon the success of the ads, advertisers in performance marketing only pay for successful transactions. Performance marketing has successfully reversed the traditional value proposition of advertising and also allows for real-time measurement of ROI.