We won’t be surprised if you have heard this word while searching and surfing about Digital Marketing agencies these days. This is because this is right now a growing trend in the advertising space. In this blog, we are going to give you a deeper understanding of what Performance Marketing is, why its gaining popularity, and its advantages too.
What exactly is Performance Marketing?
There are various definitions of Performance Marketing. The easier one is that it is tied up directly with the results of the marketing you do. Meaning, that agencies create campaigns based solely on performance as a scale. Following the same, you pay them based on the results the campaigns reap.
This is how you pay agencies doing Performance Marketing:
- (CPC) Cost Per Click: You pay marketers for every click on the ad
- (CPM) Cost Per Impression: Using a base rate for every 1000 impressions, you pay marketers based on the total number of impressions the ad creates for the brand.
- (CPL) Cost Per Lead: You pay every time the brand receives a lead from the ad campaign.
What type of brands should choose Performance Marketing?
Brands that are eager to grow exponentially. If your brand is new, young, and exciting for your audience, you should choose Performance Marketing. Keep in mind that this type of campaigning and budgeting is a WIN-WIN for both parties. While the agency reaps a good sum until the campaign runs, the brand gets the exposure it needs.
Performance Marketing vs Digital Marketing
There are a few technical aspects that differentiate both these marketing techniques. The first and the most obvious one is that Digital Marketing focuses on paid campaigns such as Search Ads, Display Ads, and Lead Ads. On the other hand, Performance Marketing focuses on reach, impressions, and so on. That way, even though there’s not much push for the brand using paid and traditional methods, there are always metrics that determine the brand’s presence in the audience.
Also, the approach to these marketing techniques is majorly different. While Digital Marketing is about generating leads for the brand using paid campaigns, Performance Marketing flourishes in an organic way to increase the brand’s presence.
There you go. That’s what Performance Marketing is all about. We hope this blog helped you get a better understanding of what it is and if you can apply it to your brand’s growth. If you have any questions, please feel free to connect with us.