What is Performance Marketing? How Does It Help To Boost ROI?

Nowadays, in the digital era, everything has changed i.e from consumers buying products to companies advertising them. With the tight competition, companies are trying all the marketing tactics to gain maximum reach.

Marketers can easily gather campaign data and measure the result whenever they want. With data transparency, marketers can optimize their campaigns for better performance, AKA introducing performance marketing.

What is Performance Marketing?

Performance marketing is a term known for online campaigns where advertisers pay marketing companies to get their desired results. Performance marketing is specifically crafted to drive actions, track them, and measure ROI, and conversions, generated through those actions.

With performance marketing, advertiser holds the complete control. An Advertiser determines the action, and then pay according to what action has been successful. Meaning, the advertiser only pays if the marketing tactics are successful.

You can easily measure performance marketing with ROI-return of investment. Performance marketing measures every activity an actions and analyse it against pre-defined KPIs. As we know, measurable ROI is the healthy sigh of a successful business.

Most common types of Performance Marketing

There are six types of performance marketing. SEM, native advertising, paid search marketing, social media marketing, sponsored content, and affiliate marketing.

1. SEM

SEM refers to the placement of paid ads on search engine results pages (SERPs). It is definitely worth your time and money to invest in search engine marketing, or SEM. This is very effective since it exposes the user to highly targeted ads about the product or service they are looking for at a time when their intent is high so that it is easier to catch their attention. Hire PPC Expert to manage and optimize your google ads paid campaigns.

2. Native Advertising

Since native ads don't look like ads, they don't interfere with the browsing experience, making them more effective than display advertisements. In other words, they appear "natively" on the web page in which they appear. The Outbrain Amplify dashboard makes native advertising highly measurable. High-quality networks provide excellent exposure on premium publisher sites, reaching high-quality audiences and traffic. connect and hire Digital Marketing Expert to increase website traffic and lead generation through advertisements.

3. Paid Search Marketing

An advertiser uses paid search marketing when they pay for clicks on sponsored ads on search engines like Google Ads, Bing, and Yahoo. A less common option is to pay each time an ad appears (CPM).

4. Social Media Marketing

The purpose of this type of performance marketing is to gain traffic and brand awareness using social media networks, such as Facebook, LinkedIn, or Instagram. You can also communicate with social media marketing agency to manage and optimize your social media campaigns and boost your brand sales and engagement.

Advertisers can reach potential clients with a variety of ad formats and targeting options, while measuring KPIs such as engagement, click through rate (CTR), cost per click (CPC), and return on investment (ROI).

5. Sponsored Marketing Content

Sponsored content is a form of native advertising and content marketing that involves publishing a post or a video on a website that publishes similar content. By doing this, sponsored content will blend in with the rest of the content while still indicating that it is sponsored.

CPA, CPM, or CPC payouts may sometimes be accompanied by free products or experiences, while other times they will be paid out in free products.

6. Affiliate Marketing

The term affiliate marketing refers to any form of digital marketing that is affiliated with an advertiser and pays out after the desired action is taken. Usually, this involves partnering with coupon, loyalty, review and incentive sites, working with an influencer, YouTuber or blogger.

Benefits of Performance Marketing

Brand awareness: By working with affiliates and agencies who have established audiences, you can reach new audiences and increase traffic to your site.

Trackable Performance: Measurable and transparent performance marketing. Brands can now track the entire click-to-consume path of each buyer, and identify which partners, channels, and investments to make to generate better results.

Lower Risk: A lower CPA (Cost Per Acquisition) and higher ROI are common since affiliates are paid only after a desired action is taken. By doing this, you will have more room in the budget for other performance marketing strategies to be tested and expanded.

Final Thoughts

This was everything about performance marketing. You can focus on good landing page, conduct A/B test, choose proper traffic source, track everything that you can, and build healthy relationship with your audience to make your performance marketing tactics successful. You can always try what you think is best for your brand and improve and grow as you go on the way.