What is Performance-Based Marketing? 6 Strategies You Need to Start Implementing Today

Performance marketing featured

Marketing strategies bridge the gap between you and your target market. And to do that, you need to identify effective marketing strategies to grow your company. But, identifying these can be challenging at first.

Successfully implementing such strategies takes time and effort. In fact, 153 billion dollars of US ad spent doesn't guarantee a successful campaign. You can reach as many people as possible with agencies that offer performance marketing services. They help you assess your performance against your goals.

The outcome of initial performance marketing services can help in your next campaign. Want to learn more? Keep scrolling to find out what performance marketing is. This article explains what it is, how it works, and what channels you can use.

Performance Marketing VS Digital Marketing: What’s the Difference?

Digital marketing uses online marketing. It covers different tactics, channels, and payment mechanisms. It can be more affordable, flexible, and effective than traditional performance marketing.

Meanwhile, performance marketing is a type of digital marketing. This is more often results-driven than other digital marketing types. Here, you don't have to pay until the campaign is successful.

In short, success in performance marketing depends more on your clicks, sales, or leads.

The key difference between the two is that performance marketing is not suited for longer-term goals. You can't track long-term goals with just one metric. Many factors influence business success and determining if your campaigns are successful takes time. So if you want a robust online branding campaign, you need digital marketing.

Then again, you can use performance marketing for short-term goals. That’s because it includes measures that are easy to monitor, such as: 

  • Revenue, sales, and lead generation
  • Customer loyalty and engagement
  • Brand management and awareness

And you can use this data to make decisions that drive business growth. Not only that, but you can also track and optimize your strategy’s real-time impact on sales.

Performance marketing is more expensive than digital marketing. But, with a successful performance marketing campaign, new businesses can reap a lot of benefits from it. 

That’s why most businesses opt to avail of performance marketing services from marketing agencies. A performance marketing agency can stitch up data and translate it for them in a way that makes sense. This way, they can get expert insights when it comes to creating the right strategies for their business.

Most performance marketing agencies offer ad management across different platforms, such as Facebook and LinkedIn. You can also find some that provide brand-building and social media strategy development.

With performance marketing, you’ll have the upper hand. Because no matter what action you choose, you only pay when it's done.

What Digital Performance Marketing Services Can You Use?

There's no one-size-fits-all marketing solution that works for every business. Some performance marketing services may work for others but not for you. That’s because your campaign goals differ. Performance marketing agencies can help you set up the right platform.

Let's look at the different channels used in performance marketing services.

1. Social Media Marketing

Social media marketing illustration

Many brands may locate and reach their target audience through social media platforms. This includes Instagram, Facebook, and TikTok.

The thing is, you should know who exactly to reach. Then you'll know where to look. For instance, TikTok is popular among younger demographics. That means you should focus on channels where your market is.

Performance marketing services like this are best handled by a professional. They use media monitoring tools and performance measures like checkouts and views to design strategies. Besides increasing conversions, performance marketers can use it to test new campaign goals.

2. Sponsored Content

This performance marketing channel uses influencers, esteemed personalities, and content curation sites. You allow them to write about you. As a tradeoff, they write a post or article promoting a brand. Their payment will depend on your agreement.

You can control what your influencers write about you with this channel. It's a win-win for advertisers and publishers when it's done right. With sponsored content, you also drive leads to your website. And if your website appeals to them, you can convert them into loyal customers.

3. Media Buying

Media buying refers to acquiring ad space and time on digital and offline channels. Media buyers also negotiate ad inventory with publishers and optimize campaigns. But it is usually the last resort for skilled marketers. The challenge of media buying lies in the fact that there are millions of websites.

This is something a performance marketing specialist can do too.

Most performance marketing services reach your target audience when it is appropriate. With media buying, you reach out to potential customers at the proper time and place. The best-case scenario is when consumers are searching and, in the mood, to buy. Well-planned media buying campaigns work regardless of budget.

4. Search Engine Marketing (SEM)

Search engine marketing illustration

Also called pay-per-click (PPC), SEM is about getting customers to click. It combines native ads through sponsored search results with other methods of marketing. Advertisers use paid search marketing to bid on keywords. Then pay for clicks on advertisements displayed on search engines.

Your online presence depends on this, just like other performance marketing services. In fact, most website visitors find a website through a search query. So, increase your site's visibility if you want people to discover your products. Find out how your paid and organic search terms complement each other with your performance marketing company.

5. Ad Serving

In performance marketing, an ad server is an important component, especially when it comes to media buying. With ad serving, you can keep track of all the data from your media buying and advertising operations. You can also perform simple analytical processing on this data to get more insightful insights.

6. Native Advertising

Native advertising adapts and integrates effectively with the media on which it is published. It does not appear to be an advertisement, but relevant content for the audience. And, estimates show that native ad spending in the US will increase by 12.3% in 2023.

Most performance marketing specialists use it for retargeting opportunities. They can present relevant information to potential customers. This way, they can attract an audience's attention and compel them to take a specific action.

Get Results With Performance Marketing Services

Online marketing is a booming business. If you're a new business, you need to learn what type of digital marketing to use. You can start by understanding how performance marketing gives your business an advantage in the market. By combining it with media buying, performance marketing can help you grow your business.

Performance marketing services offer you new ways to scale a business quickly. And at its core, it's about testing and learning. The good news is that you don't have to test everything yourself. You can get help from a performance marketing agency. Make the most of any marketing channel by understanding your customers and how they want to buy.

Performance marketing services are an amazingly effective way to build your business. But, you need a deep understanding of how performance marketing works. If this sounds like it's up your alley, then give it a try!


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