What Is Performance Marketing?

The way companies and brands used to advertise their products and services to increase brand awareness and get leads is fast changing. The reason behind this change can be attributed to the emergence of the performance marketing. Performance marketing is a data-driven marketing where the price paid for advertisement is not fixed rather dependent on the performance of the advertisement. It can depend on how often the ad is viewed, clicked, generating leads and leading to an actual sale. There are various performance marketing software applications and platforms have emerged so that the power of advertisement is restored back to the advertisers and not the platform owners.

What Makes Performance Marketing Special?

In performance marketing, the advertisers or brands will pay only when a specific action is performed. It may not just be a click as it is traditional. It could be actually generating a lead or making a sale. The price can be set according to the actions which will encourage the marketers to do better and the brands to get greater benefits. It gives to power to the companies and brands to utilize the money spent on online marketing and advertisements in the most effective way.

Various big companies and enterprises are started incorporating to reach out to the potential customers and increase lead generation, conversion rate and sales figures like never before. With popular performance marketing platforms, you can track the advertisement performances to their cores and you can take a decision based on the data.

What Makes Performance Marketing Different?

Performance marketing creates a win-win scenario for both the advertisers and affiliates. Previously, the affiliate marketers used to complain about low pay for their exhaustive efforts and the advertisers used to complain about misuse and ineffective marketing and advertisement. With performance marketing, the advertisers make sure that they pay for a specific action of their choice. For example, they are willing to pay more when a lead is generated or a sale is made as opposed to just impressions and clicks. This makes the affiliate marketers earn more for the same effort and they are getting encouragers to do better.

Moreover, the advertisers are paying only after a successful transaction and not up front as it was previously with traditional advertising and marketing methods. They can do real-time measurement and they can determine prices of advertisements based on data and analytics rather than assumptions. If you are unsatisfied with the current marketing performance with the traditional method, you should definitely make a switch at the earliest.

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