What is Performance Marketing?

Marketers can choose the desired action and only pay digital advertising platforms once taken. These actions could be clicks, subscriptions, sales, or downloads. There are many types of performance marketing. Native adverts appear on media websites and mirror the tone and style of editorial content they host. Sponsored advertising is another type, but it is subtler and takes the form of promotional articles rather than native ads. An editorial website may also include performance marketing.

What is Performance Marketing

Affiliate marketing is a form of affiliate marketing. This involves an affiliate referring customers to another business and earning commission every time that customer buys from that business. A newspaper’s list of the top road bikes might include links to affiliate retailers for each cycle. Some use web-native media like search engines and social media. Advertisements on social media platforms can be used to measure KPIs such as click-through rates and cost-per-click. You can also identify search terms that your customers use to place ads.

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How Performance Marketing Works

Advertisers place their ads on specific channels and pay according to their performance. Performance marketing can be paid in a variety of ways.

1. Cost Per Click (CPC)

Advertisers are paid based on how many times their ads are clicked on. This is a great way to drive traffic towards your site.

2. Cost Per Impression (CPM)

Impressions are views of your ad. CPM is a cost-per-thousand view system.

3. Cost Per Sales (CPS)

CPS pays only when you make a sale based on an ad. This system is often used in affiliate marketing.

4. Cost Per Leads (CPL)

CPL is similar to the cost per sale. You pay when someone signs up for an email newsletter, webinar, or other services. CPL generates leads that you can use to follow up with customers or drive sales.

5. Cost Per Acquisition (CPA):

The cost per acquisition is comparable to CPL or CPS, but it is more general. This structure allows advertisers to pay consumers when they complete a specific action. This could be sharing their contact information, making a sale, or visiting your blog.

Top Performance Marketing Channels

Which channels are most effective for performance marketing? To drive traffic, there are five types of performance marketing that advertisers and agencies can use:

1. Banner ads

Display ads are everywhere online. These ads can be found on your Face book newsfeed or at the top and bottom of the news page you visited. Although display ads are losing their popularity due to the increasing use of ad blocking and what experts refer to as banner blindness, many companies still find success with display ads that feature interactive content, videos and engaging graphic design.

2. Native Advertising

Native advertising uses the natural appearance of a website or web page to promote sponsored content. Sponsored videos may appear on YouTube’s “Watch Next” section. Native ads are very popular on ecommerce websites. You may have seen them on Face book Marketplace. It works because native advertising allows sponsored content to be displayed seamlessly alongside other organic content. These types of content are often not easily distinguished by users, which will enable you to promote your brand in an easy-to-understand way.

3. Content Marketing

Content marketing is about educating your audience. Content marketing is about providing valuable information to users and placing your brand in context. A vitamin company might publish a series of blog posts on the benefits of proboscis with a link to their products. Content marketing can create blog posts, case studies and e-books.

4. Social Media

Social media is an excellent tool for performance marketers. Social media is a great way to reach people and drive them to your site. Users can also share sponsored content organically, extending your reach beyond the original post. Face book offers the largest number of services for performance marketers. However, other platforms such as Instagram, LinkedIn, and Twitter offer many more opportunities to reach new customers.

5. Search Engine Marketing (SEM)

Search engines are the most popular way to do online research. Therefore, your site must be optimized for search engine optimization (SEM). Performance marketing is all about cost-per-click (CPC), particularly paid advertising. Many performance marketers rely heavily on content marketing and optimized landing pages for organic SEO.