Performance marketing is a type of Internet marketing, which is considered one of the most demanded and efficient today. The term performance marketing was created to define the complexity of strategies of online marketing and mechanisms of digital advertising.
The feature which defines the main difference between performance marketing and other forms of Internet marketing is that it is aimed at the achievement of concrete, financially measurable business results as soon as possible. Results, which are required, mostly are such actions as conversions and clicks. Thus, businesses hire specialists like online marketers and advertisers to drive, measure, and trach such actions. Moreover, the process of the realization of the performance marketing strategy the ROI (Return On Investment) of every activity and project is determined.
The use of performance marketing is a great method to improve affiliate sales and enhance the online side of your business. It is considered that the main idea of performance marketing is that any investments into a promotion campaign have to bring measurable returns.
Components of Performance Marketing
It is customary to distinguish 8 main components of performance marketing:
- Cross-cutting analytics
- Determination of goals
- Building a comprehensive strategy
- Comprehensive strategy realization
- Coverage and attraction
- Conversions
- Customers return
- Performance measurement
- Cross-Cutting Analytics
This stage implies the research of certain business peculiarities and current needs, which could be covered by performance marketing. In addition, it is necessary to explore the previous strategy of online marketing and digital advertising to define effective and ineffective methods for business development.