Imagine an arrangement where you give money to your digital marketing agency only when pre-decided results are delivered to you. These results are calculated in terms of leads, views, or clicks. If you have witnessed a similar arrangement then you have experienced Performance Marketing.
So what is exactly performance marketing? It is a perfect strategy where you as a client, only pay your affiliates, advertisers, or agency based on agreed-upon performance instead of an upfront regular payment. The term performance marketing is also called online performance marketing or performance media marketing. The strategy focuses on measurable KRA’s and pushes the agency to achieve them to get a payout. There are multiple platforms on which performance marketing can be executed such as social media platforms, Google Ads platform, and other platforms.
Performance marketing has seen immense recognition in the last few years, according to a study done by PricewaterhouseCoopers (PwC), the United States of America spent more than $6.2 Billion in Performance Marketing in the year 2018. This recognition and adoption of performance marketing is mostly due to measurability and due to the fact, you only pay for what you get. This strategy directly links investments to results, so clients can get exact ad dollars spent to increase sales of the product or services.