What is performance marketing?

Results marketing, also identified as performance marketing, is a branch of marketing characterized by the fact that the advertiser only pays for the results obtained with their digital marketing campaign. To do this, it seeks to develop a marketing strategy with the aim of obtaining a specific number of customers at a lower cost.

Results marketing is usually related to campaigns contracted at variable cost. The cost of these campaigns usually varies based on the results themselves. In addition, to be able to assess it correctly it is necessary to measure these results. The objective measurement of the results will show whether the objectives are being met or, on the contrary, it is necessary to readjust the plan.

It is essential to set the expected results

Thus, therefore, results in marketing are the marketing activities in which you pay for the results obtained. These results are valued based on the objectives that must be set in advance. The objectives should be stated in as much detail as possible. Performance marketing cannot be properly assessed if you don't know what results in you expect.

All this makes performance marketing or results marketing the ideal model sought by many companies. Being a business model in which you pay only when you achieve the expected success, many brands opt for this model that allows them to pay only for the leads or customers that are achieved with specific actions.

Taken into an analogue scenario, it could be said that performance marketing is like working with commercials that only charge if they achieve the expected result. The commission is taken only upon reaching the goal, and never before.

Advantages of performance marketing

Performance marketing is an ideal model being used by a famous and creative marketing agency for a large number of advertisers thanks to some of the following benefits:

• It facilitates the measurement of the ROI of the actions: Being a global result, a closed-end result, the return on investment is real, applicable to the results. The most common is that CPC (cost per click) models are used in which the relationship between action and result is evident.
• The objectives are based on conversion: Performance marketing campaigns offer direct efficiency to online actions so that conversion is instantaneous. Conversion is what allows the final result to be obtained, so the goal has conversion as its goal. Linking the objectives to obtaining conversions allows you to know at all times the result you obtain, which will obviously be the number of conversions. It is a way to control the benefit of the campaign in a real way, assessing the return on the investment made more accurately.
• Improves optimization: By measuring the results better, it allows greater optimization. If you are clear about the proposed actions, the results will give you the option to improve your activity. The measurement is usually done in real-time, so it is possible to improve and optimize your campaigns and actions in real-time as well. Better control mechanisms will make the marketing plan more optimized.
• Better investment management: Effective and efficient budget management is key. The marketing of results allows eliminating the investment in campaigns of which the results are unknown. The investment risk is very low since the company knows how much the campaign will cost. In addition, the advertiser knows previously and exactly the unit cost of each action that is put into play: subscription, qualified visit, sale or registration.
• Better media utilization: Performance marketing is ideal for using as much media as possible. Campaigns can be launched in a wide variety of media. It is an opportunity to launch creativity and efficiency in different online channels: email marketing, ads on social networks, display.