Performance Marketing A Game Changer in 2024: A Simple Guide

We use digital marketing as an umbrella term to describe all other online marketing practices, but in reality, they are all different and serve specific strategic purposes. Performance marketing is another sub-field of digital marketing that is gaining popularity over other techniques. It’s gaining immense traction among marketers because you only pay when certain actions occur. 

In this blog, we will learn the important bits of how performance marketing works and its benefits.

Table of Contents

Performance Marketing

• Meaning 
• Types
• Channels
• Benefits
• Process
• Evaluation

What is performance marketing? 

Performance marketing is a result-driven digital marketing technique where businesses only pay when certain marketing objectives have been achieved. 

You might’ve invested or seen businesses invest beyond their budget limits in advertising campaigns where determining results takes time. All the while, there are no promises of success or positive results. This is why performance-based marketing has emerged as the most efficient technique recently. It only requires you to pay when a specific action has occurred. 

Let’s say, you fixed a keyword for your search ad— ‘performance marketing agency in Delhi’. Now, not only will your ad be displayed every time a user searches the keyword or its variation, but you won’t have to pay for it unless the user clicks on it. Hence, this strategy is the most result-driven marketing tactic. 

How many types of performance marketing strategies are there? 

Below are some of the examples:

1. Pay-Per-Click Advertising (PPC)
2. Affiliate Marketing
3. Influencer Marketing
4. Display Advertising
5. Email Marketing
6. Content Marketing
7. Social Media Marketing

What are the appropriate Channels for Performance Marketing? 

The channels are mentioned below: 

1. Native Advertising

2. Display Ads (Banner)

3. Social Media

4. Search Engine

Benefits of Performance Advertising 

Performance-based advertising helps businesses retain old customers and new ones. It is one of the best pocket-friendly marketing approaches that efficiently fulfills the objectives of businesses. This strategy promotes higher ROI and increased brand awareness with lower-risk campaigns. This approach also enables marketers to track the success or failure of campaigns in real-time to make improvements quickly.

How does performance-based marketing work? 

Here is the step-by-step process: 

• Fix your marketing objectives. 
• Determine your targeted audience. 
• Choose a suitable marketing channel for your campaign. 
• Create and finalize the ad campaign. 
• Set your budget and fix the bid.
• Run the ad campaign.
• Analyze and optimize the campaign. 
• Track the performance statistics. 

Ways to measure performance marketing

You can measure it in various ways; some of which are listed below: 

• Cost-Per-Click (CPC):— Paying when the user clicks the ad.

• Cost-Per-Impression (CPC):— Paying every time the ad gets displayed to the users.

• Cost-Per-Lead (CPL):— Paying for every lead generated through newsletters, sign-ups, etc.

• Cost-Per-Sale (CPL):— Paying every time someone uses a link or code from the campaign to make a purchase. 

• Cost-Per-Acquisition:— Paying every time the specific goal has been achieved, such as the user visiting a blog page, making a purchase, or so on. 

If you’re looking for a budget-friendly way to advertise your business, then you can go for performance marketing services. Conversions is one of the best agencies in Delhi that can help your business expand its reach, increase brand awareness, and acquire a higher ROI.