Performance Marketing: Everything You Need To Know

Performance Marketing

Performance marketing is a strategy in which advertisers pay advertising platforms or marketing companies only when a desired action is completed, such as a click, subscription, sale, or download.

In more traditional marketing models, companies pay upfront for a specific effort, such as an ad in a magazine. The hope is that this advertising will attract customers to the business, but although the results can be estimated, they are never guaranteed.

Performance marketing turns this model on its head. In this case, the advertiser only invests its budget in successful campaigns, since payment is made when the objective has been met.


Advantages of performance marketing:

There are many reasons why this type of marketing is worth implementing. Between them:

Pay only for results

This is, without a doubt, the main benefit of performance marketing. Instead of paying a fixed amount in advance, you will only be charged when the agreed action or objective is met, like PPC marketing.

This could be driving traffic to your website, adding new subscribers to your email list, increasing downloads of your app, or generating sales.


Allows you to easily analyze and track data

Marketing management tools and technologies make it easy to track ad performance to monitor and adjust your campaigns based on insights collected.

Every time a user clicks on your ad subscribes to your mailing list or interacts with any action created, marketers can easily see if they’ve met their goals because they know what data to track and analyze.


It is profitable

Performance marketing focuses on generating a good return on investment. It does not have the same risk as other marketing strategies such as traditional advertising.

In addition, it allows you to see the results in real-time to adjust or reallocate the budget, and even stop campaigns to avoid overpaying for poorly performing ads.


Disadvantages of performance marketing

This strategy is very beneficial for companies. However, it is not without economic risks. The main disadvantage for advertisers – and practically the only one – is the danger of digital fraud.

According to industry experts, various digital marketing entities traffic in fraudulent advertising. There have been known cases of agencies falsifying results.

That is, they did not generate conversions or real profits for the advertiser. Fortunately, it is an easy risk to avoid if you work with experienced and recognized agencies in the sector.


How to create a performance marketing campaign?

This type of campaign looks similar to other marketing strategies. However, to give you a better idea of the steps involved, we leave you some information.

  • Start with a specific goal in mind. What do you want to achieve with your campaign? It is the first thing you must determine.
  • Select channels that fit the objectives. It is essential to understand the objectives and behavior of the audience well, to decide which channel to use. Some of the most used are native advertising, sponsored content, SEM, and social media marketing, among others.
  • Prepare content for launch. Depending on the channel chosen, different content will be created to attract the audience to each one.
  • Continually monitor. During the time the campaign is active, monitor its performance by analyzing data, tracking the best sources of traffic and sales, and adjusting the campaign based on this information.

To successfully implement performance marketing, it is essential to have the support of experienced professionals in the sector. If you want to take advantage of this strategy, we can help you contact us at Digital Specialist.