This is a form of marketing that aims to improve sales, inquiries, or other measurable activities on your site. There are several types of performance marketing – image campaign, sales campaign, and reminder campaign.

Two main advantages of performance marketing:

Measurability. You can always find out how many people are reached in a certain period, how much a click costs, what is the conversion rate to registration/sales and ROI of each ad, and how advertising sources work individually and in synergy.

Efficiency. Real-time analysis of ad campaigns enables quick and flexible optimization. You can see at any moment where you are inefficiently/effectively managing your budget and quickly reallocating it.

How performance marketing is different from the classical understanding of marketing

#1. Performance marketing is virtually unrelated to the process of creating a product.

#2. It is closely connected to digital promotion and poorly linked to offline.
One of the main benefits of digital promotion is still deep analytics. Unfortunately, you won’t be able to calculate how outdoor advertising, flyer distribution, or new store signage works with the same accuracy.

#3. More often than not, the focus is on conversion campaigns (to get a specific action) rather than image campaigns.

The goal of an image advertising campaign is to increase recognition and loyalty. These ads do not aim to sell, but such ad campaigns indirectly influence sales.

The opposite is true with performance marketing. The return on advertising investment comes to the forefront, and such advertising has only an indirect effect on brand promotion.



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