Paid performance marketing refers to digital marketing programs that allow you to pay after a desired action is completed. It differs from traditional marketing programs that allow you to pay for certain results such as sales conversions, sign ups and downloads.
Basically, you only pay when the results have been achieved. It ensures that you pay affiliate marketers or marketing companies when they complete certain actions and has a direct positive effect on ROI.
How Does Performance Marketing Differ From Traditional Advertising?
Traditional advertisers usually charge upfront for the services they provide which means you pay regardless of whether you achieve the results you want. With paid performance advertising, you only release funds when certain results have been achieved.
Performance marketing is usually used in digital marketing where it’s possible to measure ROI.
Why Should You Use Paid Performance Advertising?
There are several reasons why any business, large or small should use paid performance advertising. First of all, it’s easier to measure ROI on funds spent on marketing.
In fact, you can get real-time results to show how the money you’ve spent is performing by using cost per sale, cost per click and other ratios.
Secondly, paid performance marketing can help you reach more customers since marketing companies are likely to work harder to get the leads you need in order to earn more.
Third, it allows for better budgeting since you only pay for an expected number of outcomes. For instance, if a digital marketing company is asking for $0.4 per click then you can agree to pay $4,000 for 10,000 visitors.
This lowers your risk of loss since you’re only paying for campaigns that deliver results. This helps you avoid paying thousands of dollars on marketing efforts without any guarantee of results.
It also means that you can launch campaigns faster since you don’t have to wait for a long approval process before budgets can be signed off.
Therefore, paid performance marketing means faster optimization since marketing strategists have to work faster and smarter in order to get paid.
Finally, paid performance marketing lets you know which strategies are working best so you can pivot them for use in other campaigns for even greater reach.
Who Uses Paid Performance Marketing?
All types of businesses whether large or small use paid performance marketing. In addition, a large percentage of digital marketing firms use this type of marketing, especially since it’s easier to show ROI using this method.
Paid performance marketing is also extremely popular with startups and small businesses with a limited budget. This is because it allows them to pay only for the results they receive.
Paid performance marketing has several parties including merchants, publishers, third party tracking platforms and affiliate managers. All these play an important role in ensuring that these marketing strategies work seamlessly.
This type of marketing is an innovative strategy that allows users to choose the results they want from marketing campaigns. And, they only pay when those results have been delivered.
It’s a continuously improving marketing method. This is due to the fact that marketers are always looking for ways to improve delivery for clients. Plus, it ensures that they receive the results they want to see.
Paid performance marketing is for every type of business. It’s especially effective for startups and small businesses with a limited budget.