Performance marketing has opened avenues of tracing and measuring eCommerce marketing and lead generation campaigns, giving marketers the ability to measure everything from brand reach to conversion rate down to every single click.
What makes Performance Marketing such a sought-after form of marketing is the data-driven approach on which it is based.
It helps optimize ROI, allowing marketers to customize campaigns as per the most feasible cost of acquiring customers.
What Is Performance Marketing?
The term performance marketing is a combination of paid advertising and brand marketing put together.
As the name suggests, performance marketing is marketing based on the performance of your advertisements or marketing campaigns.
Performance may encompass any of the desired results right from clicks, downloads, sales, or completed leads. What makes it favorable, is the fact that payouts are done only after the desired results are obtained.
How Does Performance Marketing Work?
Performance Marketing comprises of various players that work in tandem towards achieving favorable outcomes: Retailers or “Merchants”, Affiliates or “Publishers”, Affiliate Networks or Third-Party Tracking Platforms, Affiliate Managers or Outsourced Program Managers (OPMs), Agencies, Solution Providers.
Each player plays a critical role in the chain of eCommerce marketing and especially for performance marketing to work.
Each member of the group must work together in union for their individual role to then drive the ultimate desired result.