What is Performance Marketing in Digital Marketing?

Written by Team EMB

May 10, 2022

Performance Marketing

Marketing is getting improvised at regular intervals in the digital world and this performance-based marketing is one such technique that will help businesses to spend their cost on the effort. Performance marketing is paying the marketers only after a specific target or trend is reached for the business. 

This technique is introduced because in internet activities you cannot monitor and control the actions of the user on your own. Only the providers will be able to monitor and control the actions of a user and they will be the right ones to decide on their payment for improving your business. Whatever effort is spent, that amount will be settled and paid by the Business owners.

Mobile app-based marketing is also a new trend today and there are a lot of options to introduce your marketing strategy. Starting from simple techniques to modern techniques, mobile technology will help you to flourish the business at the right time. 

Text messages can be sent to a specific group of users allowing them to click on the advertisement links. Mobile apps can also send push notifications so that the user can tend to click from the notification messages. 

The performance marketing strategy of your business

Generally, in any business, there will be a certain strategy defined. There will be various types of business categories. It could be a business startup, the next type could be an already established business enterprise but could not progress well, a well-established business unit, and finally a failing business.

 All such business categories will definitely have a strategy to focus and that strategy will be based on the nature of the business. If the products of your business can be confined to a specific group of user’s age limit, to a specific set of geographic locations, the tradition followed among such end customers and their area of interest so that the new product launch can easily attract more customers. Such analysis of the nature of customers will help to target the right set of social media platforms for advertising your content

Define the Model for Performance Payment

Performance marketing will help to define the way in which the payment is defined for the advertisements that you tend to publish for your business. The business unit can very well reserve their payment until there is some significant improvement. Such improvement can be measured with various standardised ways of metrics.

Below are the different ways of payment

Click Events

This is one traditional model where the business unit can pay the advertiser based on the number of clicks performed by the end user. This type of marketing will ensure that the end user has visited your business website at least once via their click activity.  These kinds of click events can be triggered from the links published on external sites and also from social media platforms. These click models can also be published on mobile platforms. 

Mobile platforms can also help the end-users to land on specific business websites. However, the pay-per-click model can be easily misused to produce the output. These clicks can be made to happen from the same group of users or rather if the advertisers plan to provide cooked-up results then it is not going to be an effective option for advertisement. 

Because you can see the rise in the number of clicks but you cannot expect the intended result. In such cases, when you try to measure the growth rate in your business, no surprise even you see a decline in the growth rate

Install Events

This type of trigger and the way of advertising is dependent on the number of installations done at the user end. These types of advertisements would be much more beneficial if the business is totally dependent on the application usage and the number of hours that the user spends on using the application. 

This model will yield payment from the business for the number of installable for a particular time period. As observed in the previous model, this model can also be misused but not to the extent of misuse that can be done with the click model. Because to have a set of users do the repeated installation would be time-consuming and it would also result in system failures. Next, these misuse events can be very well observed based on the ip address where it is getting installed. Leaving these drawbacks aside this model will be very helpful for applications that are dependent on application usage, especially for the gaming-related applications

Lead Model

This model is the modern type of performance marketing category. This model will require the publishers to monitor the users for the genuine use of business information. Moreover, it is required that the users fill in their contact information before they enter the business sites. Now based on the information supplied in the business websites the advertisers will send the payment to the publishers. There is also a possibility of misuse but if the website follows proper technical design with filters on the address details then it is possible to allow the payment for the genuine number of user registration

Sale Model

This model is the high-end model and it is necessary for the publishers to capture the end-users leading to the purchase of the product from the website. If the user had enrolled via the advertising platforms and if they made a purchase of the product, then it would be beneficial for the publishers. In this model, the publishers are at high risk compared to the business owners. Because if the users do not like the product then all the investment done on advertisements will go waste and finally the publisher will have to incur a loss when the sales are not met as per the target

Final Words

To conclude, the performance marketing methodology is the new future for the E-commerce Industry. This type of marketing will yield good benefits for the business. Even the end users will get the benefit of reaching the targeted business platform and they could experience a seamless shopping experience. Performance marketing will give a good Return on Investment for the business because they can have a complete hold on the cost spent for advertisements. Also, it is a low-risk marketing because there would be a fail fast approach from both the advertiser’s end and from the publisher’s end because they could get to know about the trend among customers by looking at the results from advertisements.


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