What is Performance Marketing?
Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers (a.k.a., “retailers” or “merchants”) pay marketing companies (a.k.a, “affiliates” or “publishers”) when a specific action is completed; such as a sale, lead or click.
WHAT MAKES PERFORMANCE MARKETING SPECIAL?
Performance Marketing is a combination of advertising and innovation that helps retailers and affiliates grow their businesses in ever-changing ways. Campaigns are highly targeted for each retailer in such a way that everyone can be successful. Performance marketing done right creates win-win opportunities for both retailers and affiliates.
WHAT MAKES PERFORMANCE MARKETING DIFFERENT FROM OTHER FORMS OF MARKETING?
Unlike other forms of traditional advertising where fees are paid up front and do not depend upon the success of the ads, advertisers in performance marketing only pay for successful transactions. Performance marketing has successfully reversed the traditional value proposition of advertising and also allows for real-time measurement of ROI.
For what Kind of customer performance-based marketing is useful?
As an Internet tool, performance-based marketing typically reaches those who spend the greatest amount of time online. Additionally, while a CPM advertisement can promote an offline purchase, most performance-based advertising promotes online sales; therefore, it’s assumed that the audience for a given ad is already comfortable with making transactions online. This makes such messaging less effective for seniors than for a generation who has grown up with mobile devices and online commerce.