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Performance Marketing Comprehensive Guide

Performance marketing is an alternative term for Pay-per-click (PPC) which is a part of digital marketing, or we can say it’s a part of PPC marketing. Performance marketing measures in terms of values or numbers here will focus more on leads, sales, clicks, etc.

The principle of performance marketing is simple, and we have to pay only for marketing performance in the form of ads, clicks, lead generation, & conversions, etc.

Performance marketing has existed since the mid-’90s with the launch of the Pay-Per-Click campaign.

The popularization of performance marketing has arisen recently, but it is more likely to be called PPC advertising.

In performance marketing generally, we focus more on the metrics in terms of values. Performance marketing also analyzes overall campaign performance as we do in PPC campaigns.

If you are ready to understand one of the growing marketing trends, then we have given you a complete guide on performance marketing.

What is performance marketing?

Marketing associations define performance marketing. “Performance marketing is a broad term defined as an online or paid advertising in which marketers and companies are paid when a specific action is completed such as lead, sales, or conversions.

In performance marketing, you pay for the marketers’ actual performance, the efforts they have spent promoting your product, and the reach they have.

Creating a performance marketing campaign

Creating a performance marketing campaign is like creating other marketing campaigns, but to give you a clear idea, we have outlined a high-level process here.

Start with a specific goal in mind – Do you want to attract 10000 visitors to your new product or your web pages, then must evaluate your goal, and you will want to familiarize yourself with your different performance marketing pricings models (which we explain below) which you will decide after defining your marketing goal.

Choose channels that make sense for you – After understanding the goal & behavior of your target audience, it will let you decide which marketing channel you want to tackle & how. Later on, we will discuss with you which different marketing channels you may choose to advertise on.

Prepare your content for launch – After choosing channels, it will depend on the performance marketing platform you choose. You will create content according to your viewable audience, which could be a blog, native advertising, Display ads, or search ads to a certain landing page.

Continually monitor &optimize your content – One of the most important things you must keep in mind while running your campaigns or after running your campaigns, you have to optimize your campaigns by analyzing your data, tracking the best traffic & sales sources, adjust the campaigns accordingly. We have given you some of the key tips for optimizing your performance marketing below.

Evaluate & Pivot – At the end of optimizing your campaigns, review the performance well it has come out the same as you expected, & then make changes accordingly and find new ways to optimize your campaigns.

Performance Marketing Pricing

Below we have listed a few performance marketing pricing models that you have to pay for performance marketing partners & platforms.

Cost Per Sale: Paying per sale requires advertisers to pay when a product is sold through marketing, and they must pay for performance marketing partners & platforms.

CPI – Cost Per Installs: It is similar to cost per sale. In this, they must pay per install or download done by mobile app. It is a type of cost per action specific to mobile downloads.

CPL – Cost Per Lead: you only must pay when an individual becomes a lead by filling the lead form you mentioned in your ad. Here leads collect data in the form of Name, Email id, Contact no &, etc.

CPC – Cost Per Click: In CPC, you have to pay when an individual has clicked on your advertisement, then you charge CPC. This pricing model is common across various channels and is one of the first engaging steps with your brand.

NON – Performance-driven pricing models you might see:

While you may not be paying for performance or actions in these models, here are some of the most common options you might see in performance marketing platforms (such as in-display & video advertising platforms)

CPV and CPCV – Cost Per Video/View and Cost per Completed Video/View: In cost per view in this, an advertiser will pay when displaying a video advertisement. Cost per video means you must pay when someone has watched your entire video.

CPM – Cost per Thousand or “Mille”: In CPM, you must pay when your advertisement has got 100o impressions. This type of pricing model only includes Display & YouTube advertisements, and it is a common type of performance marketing.

Performance Marketing Channels

can do performance marketing with varieties of digital marketing channels. We have described them below with standard pricing used.

Display Advertising 

Display advertising is a part of online digital marketing and can be executed in different forms like banner ads, YouTube overlay ads, rich media & more.

These display ads rely heavily on images, video, audio, and a bit in the form of text to communicate their message.

In-display advertising, you will find CTR is relatively lower than search ads because in-display ads, people are more likely to think of but didn’t take any initiative to click on that ad.

In-display ads have more impressions rather than clicks. That’s why CTR is lower than other marketing platforms.

Display advertising is a popular way for blogs, publications, and other websites to monetize their site.

Typical pricing models: CPC & CPM

Native Advertising 

In contrast to display ads, native ads blend seamlessly with your surroundings. This is because the ad’s design, content, and style reflect the unpaid content around it, making the user feel that they belong.

One website that you might find relative to native advertising is BuzzFeed. Advertisers create articles that mimic the style and tone of native Buzzfeed content and are promoted to the front page or shared by Buzzfeed’s social media team.

With native ads, CPM can rarely depend on your demographics, publisher, niche, & advertiser conversions. Native ad CPM rates using Taboola can range from .30 cents to $5.

Typical pricing models: CPC

Search Engine Marketing

Search engine marketing can also be called ad PPC (Pay-Per-Click). It is a kind of paid marketing where you have to pay for your clicks done by your potential customers.

In search engine marketing, you can reach your potential customers by showing them ads to different search engines like Google, Bind, & Yahoo.

In PPC, CTR is more likely to be higher than display & YouTube advertising.

What can use search engine ads for different types of businesses? One of these ads can be useful when looking for new clothes or restaurants nearby.

The average cost per click for Google Ads (AdWords) on the search network is $ 2.32. The average cost per action for a Google search campaign is $ 59.18.

Social Media Marketing

With the help of social media marketing, you acquire visibility, traffic, and customers through advertisements on social media platforms like Facebook, Instagram, Twitter & LinkedIn.

Typical pricing models: CPC, CMP, CPV, CPA, Cost-per-like

The average cost-per-click for online Facebook ads is $ 1.72, but the typical CPM for Facebook ads is around $ 10. However, on Instagram, the CPM is close to $ 5.

Affiliate Marketing

Affiliate marketing means someone is generating leads, traffic, and sales whatever you decide on your behalf, and you are offering them compensation for this. When you think of affiliate marketing, you might imagine a well-known blogger in your industry working with a company.

Affiliate partners range from big blogs to influencers to discount sites. Your ideal affiliate partner may vary based on the behavior of your buyers.

Performance Marketing Platforms

Performance marketing platforms are networks or places where you can run your campaigns to promote your brands or products with the help of paid advertising. Below are a few of them I have listed.

Display Advertising

  • Celtra
  • Adroll
  • Choozle
  • Google Marketing Platform

Native Advertising

  • Nativo
  • TripleLift
  • Native Ads
  • Taboola
  • Facebook Audience Network

Search Engine Marketing

  • Google AdWords
  • Bing Ads
  • Yahoo Ads

Social Media Marketing

  • Facebook
  • Linkedin
  • Twitter
  • Instagram
  • Reddit
  • Pinterest

Affiliate Marketing

  • Shareasalele
  • Max Bounty
  • CJ Affiliate

Benefits of Performance Marketing

There are many benefits to performance marketing, but a few of them I have listed below:

  • In performance marketing, you get results very quickly as compared to organic
  • You can track, manage & analyze your campaign budget
  • East to track & measure value
  • You can reach your audience according to your targeting
  • You can target the audience based on demographics
  • Expanded advertising reach

The Future of Performance Marketing

The future of performance marketing is very bright, & with the help of technology, it will only get better. With the help of machine learning & AI, we will be able to target our audience more effectively.

We will also be able to track our conversions more accurately. And with the help of virtual reality, we can give our customers a more realistic experience.

Performance marketing is constantly evolving & with the help of technology, and it will only get better.


Performance marketing is a form of online advertising that focuses on driving tangible results, such as clicks, leads, or sales. It involves paying for ad placements only when someone takes action you deem valuable, such as signing up for a newsletter or making a purchase. This type of marketing can be extremely effective because it allows businesses to focus their resources on ads that are most likely to result in conversions. Additionally, performance marketing provides detailed feedback about each ad placement’s effectiveness so businesses can make changes and optimize their campaigns accordingly. Performance marketing may be the perfect solution for you if you’re looking to drive more leads and sales from your website.























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