Performance Marketing – Explained

Performance Marketing can be described as an incorporation of innovation into advertising with the aim of helping both the affiliate and advertiser in growing their businesses. One major characteristic with performance marketing is that the marketing campaigns are greatly targeted for each advertiser in ways that creates a win-win situation for all that are involved in the marketing cycle. A proper performance marketing campaigns guarantees of a win-win case for both the advertiser and the publisher/affiliate.

Unlike it happens in traditional marketing, where advertisers make an upfront payment for their campaigns to be run, with performance marketing, payment is made based on the success the affiliate generates for them. With performance marketing, it’s possible to measure the success of any campaign run by the affiliate. This case, therefore, gives all the parties involved in the performance marketing transaction an opportunity to measure ROI in real-time.

Performance marketing involves a number of players including merchants/advertisers/retailers, affiliates/publishers, Outsourced Program Managers (or simply OPMs), networks, solution providers, and agencies.

Just like in traditional marketing, performance marketing business does not operate in isolation; it too requires marketing. For you to earn significant amounts of money, you first need to command traffic to your site. You also need to continue offering high quality and appealing content that can convince your audience into agreeing to perform your desired actions like opening a link, or downloading an app/game, or liking a fan page, or buying a product.

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