In this Digital Era, where everything is online and companies are spending a lot of money on advertisements.

With the evolution of Digital Marketing and Social Media Channels one type of Digital Marketing is becoming very popular and important for the companies.


Have you ever heard about this marketing ?

As the word itself describes, it is performance based Marketing where advertisers are only paid for the results. For example : Sales, Leads, Clicks etc.

Let’s discuss in detail about Performance Marketing, how it works, what are the Performance Marketing Channels and what are the benefits of it.

What is Performance Marketing ?

Performance marketing is most highly sorted Marketing. It is a type of Digital Marketing in which compensation is paid to advertisers only on the basis of some desirable results.

It is result oriented. For example – Sales, Leads, Clicks, Impressions etc.

Performance Marketing has replaced traditional marketing. Instead of paying a specific amount to advertisers , the amount is paid on the basis of specific actions and results.

Performance Marketer bridges the gap between business owners and digital marketers.


Performance Marketer puts ads on a particular Marketing Channels and then paid on how that ad performs.

There are a few matrices on the basis of which advertisers are paid.

Let’s discuss in detail:

1: Cost Per Click ( CPC) :

Compensation is paid to advertisers on the basis of the number of clicks on their ad. It is a great way to increase traffic for your website.

2: Cost Per Impression ( CPI ) :

Compensation is paid to advertisers on the basis of some impressions.

For Example : On 1000 Views, the advertiser will be paid.

3: Cost Per Lead ( CPL ):

With CPL, compensation is paid to advertisers on the basis of leads. Leads can be in the form of subscription to email newsletter, signing to a form, attending webinar etc.

With these leads we can redirect users and achieve our end results.

4: Cost Per Sale ( CPS ) :

With CPS , compensation is paid when there is a sale. It is more like affiliate marketing.

5: Cost Per Acquisition ( CPA ) :

With CPA, advertisers are paid on some specific actions like sales, filling up forms, visiting blogs etc.


Generally ads are displayed on top performance marketing channels where we can drive more traffic and get end results.

Here is some of the Top Marketing Channels:

1: Social Media:

Social Media Channels are the best thing when it comes to Performance Marketing. It offers a variety of opportunities to share contents and achieve desirable results.

For example : Facebook Ads, Instagram Ads, LinkedIn Ads etc.

2: Native Advertising :

Native Advertising is paid media designed to match the content of a media source.

For example : Paid Video content on the Youtube App, Sponsored Post etc.

3: Search Engine Marketing ( SEM ):

Most of the research is done on search engine platforms. So, we need to have SEO optimized sites which drive lots of traffic on the Website. The focus is basically on Cost Per Click.

4: Banner ( Display Ads ):

Whenever you visit websites, Social Media Channels, you come across plenty of display ads. These appear on websites, news feeds etc.

Display Ads get huge success with its interactive contents, videos,and engaging graphic designs.

5: Content Marketing :

Content Marketing is the best way to meet our desirable results. Educating users and providing value to them through useful contents will increase their reach.

Content Marketing helps to retain users for a longer  time and build trust factor among users.

Benefits Of Content Marketing :

  • Advertisers are paid only for the results.
  • Allow advertisers to plan in a better and effective manner.
  • Easy to track and measure performance.
  • Return on Investment is high.
  • Guaranteed results.
  • More Revenues are generated with Performance Marketing.

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