What is Performance Marketing?
Performance Marketing is quite simple. The concept is easy to grasp! You just have to pay for performance. Performance can be in the form of anything at all, clicks, lead generation, conversions or calls. Performance Marketing is a very different concept from digital marketing. In online marketing or digital marketing, you pay for a expected result! Or a result that’s based on data. Basically, in online marketing, you are paying for an estimated result. Whereas in Performance based marketing you are paying for actual results. Performance based marketing has been around ever since the first PPC campaign began!
Types of Performance-Based Marketing
Needless to say that there are a lot of performance people want to boost. And that’s why there are so many types of performance marketing. The basic concept is the same, but the details vary with the performance. Here’s our complete guide on all the type of performance marketing.
Cost Per Click- Cost per click is the most common type of performance based marketing. In this form, you have to pay money based on clicks! Lets assume that the cost of per click is $5, then for every single click you must pay $5.
Cost Per Lead- If the sole motto of your business is to generate leads. Then this Performance Marketing type is just for you. You only pay the publisher money whenever a user opens and fills out your lead generation form or contact form on your website. Once the users give you his or her details, the lead is considered complete!
Cost Per Thousand- This form of Performance Marketing is based on impressions! Pay for the advertisement based on views! Lets say that your ad was watched a thousand times then you must pay money!
Cost Per Sale- Cost per sale or usually known as CPS. In this Performance Marketing, an advertiser only has to pay their partners only when their efforts have led to a sale of the product advertised. The advertiser doesn’t have to bear the burden of finding suitable channels for the promotion of the product.
Cost Per Install- Cost per install follows the same concept as Cost per Sale. As an advertiser, you only have to pay once the user downloads and installs your application. This Performance Marketing type is a kind of CPA (cost per action) that’s restricted only to mobile phones.
Display Advertising- Rumor is that display ads aren’t as effective today as they were yesterday! Nonetheless Display advertisement are still a huge market! Display ads are huge banners you see on your mobile on your desktop when you visit a website!
Native advertising- Native ads don’t look like ads. They blend in the form & function of the web page the user is visiting. The ads pop up automatically based on the kind of content the user is reading! The basic payment metric for native advertisements is to pay per impression.
Search Engine Marketing- Usually known as PPC, search engine marketing is also a form of performance based marketing. All the ads you see on Google or Bing or any sort of search engine’s result page is a part of search engine marketing. We calculate the cost of SEM based on clicks.
How to Pick Your Perfect Performance Marketing Type?
Before signing up with a Performance Marketing agency, keep in mind what you want to accomplish. Is it, more sales? More leads or more calls? The kind of goal you have will change the kind of performance-based marketing you need. Choose your goals wisely and go through with performance based marketing.
If you are looking for a Performance-Based Marketing agency to assist you in reaching your goals. Then SimpliPixel is your best bet! SimpliPixel is a result centered Performance Marketing agency, over the years they have helped tons of their clients meet their desired goals. Bring your most difficult goal, and they’ll supersede it.