Daiki Media
Performance Marketing

The Internet has defined the way we search for products and purchase services. In such an era, finding digital marketing techniques that work is important. Your business may have an excellent business plan but it also needs a strategy. Without a digital identity and marketing strategy, you may find growing your business twice as difficult. This is the chore of performance marketing

What is Performance Marketing?

Performance marketing definition is a large umbrella. Under this term, all digital marketing campaigns can be included. This includes campaigns where businesses pay advertising companies and platforms to achieve the desired result. The primary definition of performance marketing is that it is used to track the performance of a specific metric. This means a marketer pays only when the specific action is completed. 

So, how do you understand the difference between performance and digital marketing?

What is the distinction between performance marketing and digital marketing?

The primary difference between performance marketing vs digital marketing is their approach. Digital marketing often focuses on tracking various metrics to successfully run the campaign. For example, the marketer may pay to display their ad on the Google search engine page.

On the other hand, performance marketing involves paying only when the desired action is completed. For example, a marketer may pay only when the user clicks on their ad instead of viewing it

This basic difference between digital and performance marketing is the major difference in their cost. So, how do you define the success of a performance marketing campaign?

What are the types of performance marketing?

Performance marketing channels are often classified into various types. However, four channels are currently popular and provide high yields.

  • Native Marketing

Native Marketing is a type of sponsor content marketing. In this type of marketing, the business creates informative content to be posted on relevant platforms. The advantage of this technique is that while adblockers may block PPC ads, these relevant ads placed on the websites won’t be blocked.

  • Affiliate Marketing

Affiliate marketing is an established and reliable form of performance marketing. This method can be used to create a network of marketers both online and offline. Any website operator or owner can be part of the affiliate marketing network.

  • Social Media Marketing

Social media advertising has become a growing trend among marketers. The marketing technique generates organic interest in the business by using various social media channels. This often includes diversifying your interest and then tracking metrics to find the target audience of your business.

  • Search Engine Marketing

Search Engine Marketing is often used to increase organic interest in the business and to increase visibility. While this is a method of paid advertising, it can pay off. The foundation of this marketing technique is finding the right keyword for your target audience and then winning the bid.

What is included in a performance marketing strategy?

Performance marketing in the contemporary environment allows marketers to pick and choose. Oftentimes, two or more types are combined to create a unique performance marketing strategy. However, there is one element that is common in all marketing campaigns: Search Engine Optimization.

Strategies in Performance Marketing

Performance marketing is based entirely upon paying for a completed action. Therefore, it is important to understand which strategy to employ for your business. Currently, there are five types of strategies that can be used. Based on your product, you can choose one.

  • Cost Per Impression

Cost Per Impression is often known as Cost Per Milli or Cost Per Thousand. In this strategy, the marketer pays for 1000 views of the ad. This method does not track the ratio of customers who take action against those who don’t. Instead, this metric tracks only the cost of displaying your ad 1000 times. This method has become relatively less popular over the past decade due to the lack of concrete data tracking.

  • Cost Per Click

Cost Per Click allows the marketer to pay only when their ad is clicked on. If the user views the ad but does not click on it, the marketer does not need to pay for it. However, this means that the cost per click increases for the business. Therefore, for this strategy, it is important to have a clear idea of your target audience and how to convert them. Without these, you may find it difficult to maintain the required conversion ratio.

  • Cost Per Sale

Cost Per Sale is an old performance marketing strategy. This involves paying for an advertisement only when a sale is made. However, much like the cost per click, the cost of each sale increases for the business. Without detailed knowledge of the target audience, a lucrative ad and proper keywords, it may not be possible to get the required conversion ratio of the campaign.

  • Cost Per Leads

Cost Per Lead is a marketing technique that involves paying only when the sign-up is completed. This model focuses entirely on the audience creating an account with the business’ website. This method can also be called online lead generation. It does not take into consideration other actions like clicks, views, etc. 

  • Cost Per Acquisition

Cost Per Acquisition is also known as Cost Per Action (CPA). In this marketing technique, the marketer pays only when the desired action is completed. The desired action can be a view, a click, a share, like, form completion, etc. 

An Example of Performance Marketing

One of the most popular examples of Performance Marketing is affiliate marketing techniques used by Amway. Their network of affiliate marketers from all over the world allows them to market their product range at an international scale without having to employ an extensive marketing and sales staff. These affiliate marketers work at the required pace to sell products locally. And in return, they are provided with a commission for their work.


It is just as important to regularly update your website’s performance marketing strategy as any other campaign. Without a regular update, your business may find it difficult to grow at the rate you expect it to. Diversifying your options and looking for different campaigns and strategies will help you understand how performance marketing can be used to your advantage.

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