{"id":16074,"date":"2021-12-14T19:01:00","date_gmt":"2021-12-14T16:01:00","guid":{"rendered":"https:\/\/adsterra.com\/blog\/?p=16074"},"modified":"2023-12-28T12:19:15","modified_gmt":"2023-12-28T09:19:15","slug":"performance-marketing-definition","status":"publish","type":"post","link":"https:\/\/blogdev.adsterratech.com\/blog\/performance-marketing-definition\/","title":{"rendered":"Performance Marketing: What You Need To Know"},"content":{"rendered":"\n

Performance marketing has replaced blurred KPIs with concrete metrics. It uses technology to assess the effectiveness of every advertising campaign you launch.<\/strong> <\/strong>So, can marketers easily apply performance marketing strategies? How does PM differ from affiliate marketing? Is it related to display advertising? If these questions puzzle you, you\u2019re about to get the answers.<\/p>\n\n\n\n

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\r\n\tToo long? Ask AI to summarize<\/strong>\r\n\t
\r\n\t\t\r\n ChatGPT\r\n\t\t<\/a>\r\n\r\n\t\t\r\n Perplexity\r\n\t\t<\/a>\r\n\r\n\t\t\r\n\t\t\tClaude\r\n\t\t<\/a>\r\n\t<\/div>\r\n<\/div>\n

What is performance marketing?<\/strong><\/h2>\n\n\n\n

Performance marketing refers to online campaigns where advertisers pay per conversions generated. It gives advertisers more power to define the conversion type they want and then pay when it is completed.<\/p>\n\n\n\n

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How is performance marketing different from other types of marketing?<\/strong><\/h2>\n\n\n\n

In most traditional forms of advertising, the advertiser pays for ad space upfront, regardless of how effective it is. This approach could result in thousands of dollars spent with little conversion.<\/p>\n\n\n\n

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Performance marketing vs. brand marketing<\/strong><\/h3>\n\n\n\n

Brand marketing focuses on purposeful information and creative storytelling, and long-term growth. While performance marketers focus on metrics and revenue.<\/p>\n\n\n\n

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Performance marketing vs. affiliate marketing<\/a><\/strong><\/h3>\n\n\n\n

Affiliate marketing is a special type of performance marketing. Why? Because advertisers pay affiliates for promoting their products or services and driving conversions. They receive payment solely for actions such as clicks, leads, installs, downloads, or other conversions.<\/p>\n\n\n\n

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Performance marketing vs. programmatic marketing<\/strong><\/h3>\n\n\n\n

Programmatic marketing automates buying advertising space<\/a> to reach targeted audiences at lower costs. Performance marketing\u2019s ROI is easier to assess than programmatic\u2019s. Instead of paying for traffic volumes, you only pay for target actions. Performance marketing doesn\u2019t convert every ad click. But most of these clicks are useful.<\/p>\n\n\n\n

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How does performance marketing work?<\/strong><\/h2>\n\n\n\n

Typically, four parties are involved in developing and implementing a performance marketing strategy<\/p>\n\n\n\n

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Advertisers or Merchants<\/strong><\/h3>\n\n\n\n

Often, a company sells goods or services with a specific goal: increasing leads or sales.<\/p>\n\n\n\n

Affiliate (optional)<\/strong><\/p>\n\n\n\n

An affiliate is a marketer who promotes advertisers\u2019 products\/services to their website users and followers. Affiliates can also buy social, search, or other types of traffic to direct them to the advertiser\u2019s landing page. This way, they profit from the difference between their spending and the payouts for conversions. Publishers (website owners) provide their websites and landing pages for placing third-party ads.<\/p>\n\n\n\n

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Ad networks<\/strong><\/h3>\n\n\n\n

First of all, an ad network is a traffic source for advertisers and a way of earning money for those who provide this traffic.<\/p>\n\n\n\n

Advertising networks, in a broad sense, make it possible to:<\/p>\n\n\n\n