Performance Marketing
Performance marketing is a type of digital marketing where advertisers only pay for specific actions that are performed by users, such as clicks, conversions, or sales. In performance marketing, advertisers focus on the return on investment (ROI) of their campaigns rather than just the number of impressions or clicks generated.
Categories of Performance Marketing:
- Affiliate marketing: A performance-based marketing model where advertisers pay commissions to affiliates for promoting their products or services.
- Pay-per-click (PPC) advertising: Advertisers only pay when a user clicks on their ad, and the cost per click varies depending on the keyword and competition.
- Cost per acquisition (CPA) marketing: Advertisers pay when a user takes a specific action, such as making a purchase or filling out a form.
- Display advertising: Advertisers pay per impression, but can target specific audiences based on demographics or behavior.
- Influencer marketing: Advertisers collaborate with influencers to promote their products or services, and pay based on the influencer’s performance, such as the number of clicks or conversions.
- Retargeting: Advertisers target users who have previously interacted with their brand, such as those who have visited their website or added items to their shopping cart, and pay only when those users take a specific action.
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