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What Is Performance Marketing?

What Is Performance Marketing?

Get Paid Only If You Please!

Not all brands and businesses would like to invest in advertisements and campaigns that promise only impressions and clicks, but no conversions. Companies would want real results in the form of leads, conversions, and sales, right? Performance marketing is a business model where results are guaranteed as defined by the client and a performance marketing agency pay if and only if the results met.

Introduction to Performance Driven Marketing

Performance-driven marketing involves adopting marketing strategies, techniques, and campaigns to drive sales and conversions. It is taking a strategic approach to key performance metrics and focusing on sales and conversions rather than the impressions and clicks.

Here, you shift from awareness-building of brands to action metrics like sales. With more and more brands focused on ROI on their ad revenue spends, the performance marketing agencies must deliver the results if they are to get paid.

What Is a Performance Campaign?

When a campaign is focused on attaining an action (sales, conversions, leads) as opposed to driving awareness of the product (clicks), it is called a performance campaign. And yes, the effect of the campaign and the user can be measured for better optimization.

The payment to the performance marketing agency or the performance marketing manager is done only when the campaign can gather sufficient traction as agreed beforehand by the company and the agency.

Let Us Look at Some of the Performance Marketing Channels

A performance marketing company will use different performance marketing platforms and channels to promote a brand, product, or service. The different types of performance marketing are

Sponsored Content:

Sponsored content in the form of advertisements can be put up on various online platforms like search engines, social media, print media, and so on to gain viewer attraction.

There is also content that looks genuine but is the sponsored or paid content by the brands, and this is included in our next performance marketing channel.

Native Advertising:

Paid ads that match the look and feel of the media format in which they appear are the native ads. They go with the flow of the feed and are non-disruptive.

They can be distinguished by words such as ‘sponsored,’ ‘suggested,’ ‘recommended for you,’ ‘promoted stories.’ The native advertising has a higher percentage of conversions and leads.

Search Engine Marketing:

Keywords or phrases relevant to the product are studied and selected. The top-ranking keywords are bid to place ads that appear at the top of the search engine page results (SERPs).

Gaining top organic ranking is a slow and continuous process that can be achieved by backlinks, blogs, and social media engagement, and so on.

Social Media Marketing:

Another popular platform is through various social media platforms like Facebook, Twitter, Instagram, and YouTube.

Campaigns, ads, contests, influencer marketing, are all included on social media to gain traffic and product engagement through likes, comments, and clicks. The campaigns may be free, paid, or sponsored.

Affiliate Marketing:

This is the most popular of the performance marketing channels. This is a revenue-sharing model wherein the businesses pay a commission to the affiliate when completion of the sale or some pre-defined action happens due to the affiliate’s referral and promotion.

Influencers are also affiliate-marketers, and it is one of the ways to guarantee some traction in the sales of the product or service.

Tasks Undertaken by a Performance Marketing Manager

The performance manager has to ensure that the advertising campaign not only reaches the target audience but also generates leads and conversions.

He has to design creative campaigns through various platforms, influencers, and affiliates to get the target audience to the website’s homepage or landing page.

He has to design a useful landing page that will help him convert the traffic into sure-shot sales. A current landing page has to have the following features.

  • Use clean and minimal sharp images and text
  • Minimal navigation steps for checkout
  • Registering or signup form has to ask for relevant information. This process should be short and quick.
  • Make the CTA (Call-To-Action) pronounced, noticeable, but not distracting.
  • Headings and subheadings have to be clear and concise to promote the product as valuable.

Your product on the landing page has to add value to the customer’s need to persuade them to make the purchase.

A performance marketing manager has to make proper use of the data to see how the campaigns are performing. He has to analyze the data for traffic sources, click-through-rate, mobile visitors, bounce rate, etc. He will apply the result on the existing campaigns or create new campaigns that will individually approach the targeted audience with the right message.

He has to use useful performance marketing tools to measure the success of his campaigns. Some of the popular performance marketing tools are

Google Analytics:

This gives you a comprehensive report on many parameters like where your users are coming from, rank in search engines, keyword analysis, bounce rate, and so on.


You can automate your campaigns, monitor, and track the results. Its SEO tools help you to discover the traffic and specific keyword research.


This is for managing multiple social media channels and tracking its results like engagement, clicks, and performance of your content in it.


This is the best tool to analyze Google’s organic and paid search results. It also performs a competitor analysis to see the keywords on which they have ranked.


This allows you to monitor the mentions of your brand and in keyword importance. With this tool, you can discover accessible content that you can share.

Know about Performance Marketing in Holistic Marketing

Performance marketing works best for businesses that already have established brand names. If they are concerned with the sale of their products, then they can go in for performance marketing campaigns so that they get better ROI.

For startups and other companies are trying to establish a brand in the market, digital marketing suits because they have to create brand awareness first in the market.


The benefit of performance marketing is that both the brand and its promoters share the risk. Hence, the developers try hard to drive customers to buy the product or service. Moreover, with performance marketing, brands can reach a broader target audience by sharing the onus with the promoters. Performance marketing 2019 is all about promoting your product this year by sharing the commercial risk (s) while still reaping the reward (s).

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