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What Is Performance Marketing?

If you want you brand, business, or company to succeed, you have to perform. This is where performance marketing can help.

We're always talking about marketing strategies and tactics, marketing plays a vital role in giving you what you need to grow your business and brand.

What Is Performance Marketing?

Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers (a.k.a., “retailers” or “merchants”) pay marketing companies (a.k.a, “affiliates” or “publishers”) when a specific action is completed; such as a sale, lead or click.

Why Is Performance Marketing Important?

Performance marketing is marketing based solely on business outcomes and data. While brand marketing is used to grow recognition and increase visibility, unfortunately it doesn't focus on what matters most in marketing: results. Furthermore, when you know the exact results you're getting, you're going to be better prepared to make the "right" business decisions.

It Helps You Track KPIs And What Matters The Most

Performance marketing is trackable and measurable down to the exact clicks. Companies will have the ability to track and measure everything - from acquisition costs to individual store sales, even the average order value of new customers.

Performance marketing's strength is derived from a straightforward concept: the agency must meet client-defined metrics and achieve the desired impact — a measurable business result — to fulfill the contract.

Check Out This Performance Marketing Infographic

Want to read more about the basics of performance marketing? PDMI member DFO Global has you covered with this evergreen infographic that breaks down the difference between brand and performance marketing, how performance marketing works, common conversion goals, and more.

Enjoying the content? If so, you should check out our exclusive PDMI content. Become a PDMI member is simple and easy, click here to check out the benefits and features of a PDMI membership.


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