How Performance Marketing Approach Is Sustainable In Digital Marketing

Anyone who owns a business knows the importance of having a stronghold online through your website. In a world where we select products and services mostly based on their online reviews, promotions of your website and products online have become an absolute necessity. Traditional digital marketing techniques include promoting your business online through various platforms like search engines, social media, emails, websites, and other digital platforms. While conventional digital marketing focuses primarily on getting your content the maximum visibility to the target audience, it doesn’t have a concrete way of measuring its success. On the other hand, performance marketing is emerging as a better and more sustainable approach to digital marketing and has a better return on investment. 

What is performance marketing?

Performance marketing, as the name suggests, is a type of digital marketing strategy where the advertiser pays only for specific actions like clicking on an ad, sales of a product, a generated lead, or more. With the new and improved data analysis tools available, getting accurate information like the number of clicks on a particular ad had become more manageable. In the traditional digital market, the advertiser had to pay for ad space on the web irrespective of the performance. Contrarily, in performance marketing, the advertiser pays based on various measurable actions. Prominent digital marketing experts charge the advertisers based on the following: 

  • Cost Per Impression (CPM)

Impressions are the frequency with which your ad was visible to the target audience. CPM refers to the amount paid by advertisers per thousand impressions. 

  • Pay Per Click (PPC)

The count of times an advertisement was clicked on a website can be tracked using various data analytics tools available. The advertisers pay only when their advertisements are clicked on.

  • Cost Per Sales (CPS)

Cost per sale means that the advertisers pay the publishers only when a purchase is made through the ad published on their site. 

  • Cost Per Leads (CPL)

Under CPL, advertisers pay when an interested customer buys their product or signs up for their service directly through the advertisement. 

  • Cost Per Acquisition (CPA)

CPA refers to the amount paid to the publisher per action taken on the advertisement. Acts on the ad may include clicks, sales, or form completion.

Types of performance marketing

The various performance marketing strategies advertisers can choose for the growth of their brand online are:

  • Native advertising: These help you increase the reach of your content through the website of the publishers.
  • Sponsored content: Sponsored content is published on the publisher’s website and helps target the audience that tunes-out the traditional ads. 
  • Social media advertising: Various social media sites like Facebook, Instagram, Twitter, and other channels help you reach your target audience to improve your visibility online. 
  • Search engine marketing: These include pay-per-click programs offered by Google and Bing.
  • Affiliate marketing: It is essentially free advertising as the fee is paid only after the desired results. 


What makes performance marketing better than traditional digital marketing?

Performance marketing is an evolved, sustainable form of digital marketing that provides power to the advertiser. This result-oriented and 100% measurable marketing strategy is the next big thing in digital advertising. Some of the notable benefits of performance marketing over traditional digital marketing as explained by experts at TTDigitals are:

  • Easy to track performance.

With the improved data analysis tools available, it is easy to track the growth of your business online and get exact results. The progression from each ad is visible and tracked easily. They can be further used to develop marketing strategies and understand the target audience better. 

  • Low risk.

In performance marketing, you only pay when an action like click, sale, lead generation, or filling of form occurs. Thus, you pay for the services and promotions you get instead of paying a fixed amount irrespective of the results, as in traditional digital marketing. 

  • Focused on the return on investment.

The entire focus of the strategy on ROI enables businesses to get target campaigns with high ROI. 

The measurable results and ROI make performance marketing a better and more sustainable approach to digital marketing strategies.


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