What Is Performance Marketing?

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Performance Marketing is a term that you will see used frequently in the digital marketing sector, but what does it actually mean? This article will explain exactly what performance marketing is, who uses it and the things to think about when setting up a successful performance marketing campaign.

The performance marketing industry is an exciting and fast-growing sector. But what is performance marketing and how does it work?

Performance marketing is a type of digital marketing that focuses on generating conversions and sales. It differs from other forms of digital marketing in that it doesn’t rely on 1 channel, instead taking a collective performance view over multiple channels.

Performance marketers are responsible for creating, testing and measuring campaigns that will help you achieve your business goals. They’ll use data-driven insights about your audience to find out what’s working best for them in order to create content that will convert into qualified leads or sales.

Performance marketing is a model that rewards the advertiser based on user-result metrics.

When you think of performance marketing, chances are you’re imagining a model that rewards the advertiser based on user-result metrics. This model is usually run by a performance marketing agency, but can also be run independently by brands themselves with the right knowledge.

When an advertiser or agency invests in this type of marketing campaign, the first thing to think about is the customer. Who are we selling to, where are they, how do they tend to buy, can we find some markers of their behaviour such as lifestyle statements, and many more. What we are trying to do here is to ensure we fully understand our target audience and find how they tick. Only 5% of customers purchase because they have a specific ‘need’ for an item. 95% of shoppers are motivated by how they ‘feel’ when they interact with a product.

If emotion isn’t built into your marketing coms, then the likelihood is you are missing out on 95% of your audience and the revenue that goes with that. Let alone the brand equity gained or lost if the emotion isn’t used.

Take your customers on a journey with you. Don’t leave them behind.

Performance Marketing campaigns are generally operated using digital marketing channels

Digital Marketing channels such as Pay Per Click, Organic Search, Affiliates, Social, Email and many more play a major role in performance marketing campaigns. A successful performance marketing agency will be able to deliver digital channel growth and also provide a top-down view of how each digital marketing channel is influencing each other towards the common goal (revenue). This step is vitally important to scaling revenue. If you ONLY look at how each channel is performing individually, your growth will stall.


If you’d like to learn more about performance marketing, or are interested in setting up a campaign of your own, we’re here to help. Contact us for a free consultation.

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