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What is performance marketing?
Performance marketing is a form of digital marketing where advertisers (marketers) conduct ad campaigns with specific business objectives, such as getting clicks, generating leads, or making sales. Advertisers connect with agencies or publishers or use other channels like social media to run their ads. They pay the service provider (publisher or affiliate) by measuring the campaign performance in terms of the objective achieved.
How performance marketing works
Here is a quick explanation of how it works.
- Advertisers who want to promote their product or service connect with publishers or affiliates who can help.
- Publishers or affiliates run the advertisers’ campaigns to achieve the performance goals.
- Advertisers pay the publishers or affiliates for the results generated.
How to choose a performance marketing tool
Performance marketing tools or platforms are those that support performance-based ad campaigns. To choose one, you must check the following.
- What is the pricing?
- What are the features, and do they match your requirements?
- Is there a free trial or demo available?
- Does the platform offer customer support or operational assistance?
- What are the platform’s reviews?
Popular performance marketing pricing models
- Cost Per Install (CPI): Advertisers pay for every install their app gets.
- Cost Per Lead (CPL): Advertisers pay for every lead generated.
- Cost Per Click (CPC): Advertisers pay for every click the ad gets.
- Cost Per Sale (CPS): Advertisers pay for every sale made.
Cost Per Click
In the CPC or Cost Per Click model, advertisers pay publishers a certain amount for every click the ad receives. CPC is sometimes referred to as PPC or Pay Per Click.
In-app advertising is a popular method to earn money through apps. If a mobile app or game supports in-app advertising, it means it incorporates paid ads into the app. The app publisher gets paid every time users see or engage with the ad.
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