Performance Marketing
Definition
A comprehensive term that refers to online marketing and advertising programs in which advertisers pay marketing companies when a specific action is completed.
Deep Dive
Performance Marketing is an umbrella term for online marketing and advertising programs where the advertiser pays only when a specific, measurable action is completed. This contrasts with traditional advertising models where payment is often based on impressions or placement, regardless of user engagement or conversion. Key actions in performance marketing can include a sale, a lead form submission, a click, an app download, or even a specific engagement metric, directly linking marketing spend to tangible business outcomes.
Examples & Use Cases
- 1An e-commerce brand pays an affiliate commission for every sale generated through the affiliate's unique tracking link
- 2A software company pays Google Ads only when a user clicks on their ad and lands on their website
- 3A mobile app developer pays a network per app install attributed to their campaign.