Definition:
Performance Marketing is the online marketing strategy in which the client only pays for the results obtained by the strategy, that is, it is not the strategy itself. The client will pay more if they have obtained better results and will not pay anything if the strategy or campaign has not achieved results.
In the words of the Performance Marketing Association: “Performance Marketing is an online marketing model in which the advertiser only pays for the results obtained”.
Advantages of performance marketing
Among the advantages of performance marketing we can highlight:
- Not being the most widespread method in the marketing sector, it is a plus of transparency for those agencies that apply it.
- It reduces the risk perceived by the client, who knows that he will only pay based on the results of the campaigns.
- It combines all the means of advertising: campaigns in Google Ads, Social Ads, Email Marketing… very effectively.
- The objectives are defined based on conversion: lead achievement, sales volume… which allows you to clearly see the results of the campaign.
- The benefits are easily measurable and quantifiable, establishing clear kpis and payment criteria from the out start.
- It allows you to efficiently allocate marketing budgets to each channel.
Requirements to carry out a performance marketing campaign
- Requirements must be measurable and quantifiable
- A reliable web measurement is necessary and that faithfully collects its performance
- The relationship between agency-client company must be fluid
- The agency must have highly qualified and experienced staff
Frequently asked questions about Performance Marketing
What is Performance Marketing?
Definition: Performance Marketing is the online marketing strategy in which the client only pays for the results obtained by the strategy, that is, it is not the strategy itself. The client will pay more if they have obtained better results and will not pay anything if the strategy or campaign has not achieved results. In the Arimetrics glossary it is placed in a digital marketing context to clarify its role, uses and practical implications.
What is Performance Marketing used for in digital marketing?
It is used to better analyse an action, tool, channel or behaviour related to acquisition, measurement, communication, sales or user experience. Its value depends on applying it to a concrete decision.
How is Performance Marketing related to a digital strategy?
It is related to digital strategy when it affects objectives, data, content, technology, campaigns or conversion processes. That is why it should be reviewed together with the business context, not as an isolated term.
What should be considered when working with Performance Marketing?
It is advisable to review its definition, context, associated metrics, limitations and possible risks. It is also useful to validate whether the concept has a real impact on performance, user experience or decision-making.