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Performance marketing is online advertising where the marketer is only paid when they achieve a specific goal. This can be anything from a click, signup or purchase.
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How Does Performance Marketing Work?
Cost Per Click (CPC)
Advertisers are charged based on the number of times their ads are viewed and, in turn, click. This helps you get more traffic and improve your ranking in Google search results
Cost Per Impression (CPM)
CPM is the cost per thousand impressions. When you buy an ad, you pay per thousand impressions – a simple way to understand how much your advertising costs.
Cost Per Sales (CPS)
Cost per thousand (CPM) ads work like a radio station. With every ad impression, you pay a certain amount. When you make a sale that was driven by an ad, then we will convert the next 1,000 impressions into the money that we owe you.
Cost Per Leads (CPL)
Like cost per sale, CPL is an easy way to get paid for generating leads. When someone signs up for your email newsletters or webinars, you’ll get paid.
Cost Per Acquisition (CPA)
With a Cost Per Acquisition (CPA), you pay when consumers complete a specific action. This could be making a purchase, sharing your contact information, or visiting your website.
Channels of Performance Marketing
Affiliates or Publishers.
Affiliates or publishers are models for many types of performance marketing and can come in many forms: coupon websites, product review sites, blogs and mobile apps.
Reward your loyal affiliates by offering them compensation for promoting your brand. Rewards could be access to promotions and rewards, cash payments or merchandise such as branded t-shirts or other items.
How Do You Measure Performance Marketing?
Performance marketing, by definition, measures the effectiveness of your entire marketing or advertising campaign. This can be measured by the impact and ROI (return on investment) generated from your advertising campaigns.
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PERKS OF PERFORMANCE MARKETING
Featuring a wide range of different options, including email and social media, performance marketing effective in enhancing a business’s reputation and growing its brand recognition, as well as providing powerful advertising opportunities. Here are three main benefits of performance marketing for businesses
Performance Marketing Strategies
You’ve heard the message and are ready to start your performance marketing campaign. But what do you do from there? Here are five strategies to help you boost revenue and drive engagement.