What is Performance Marketing?
The term “Performance Marketing” refers to marketing campaigns, in which advertisers pay publishers when specific, predetermined results are achieved, not before.
Types of Performance Marketing Campaigns in Digital Advertising
Here are a couple of examples to illustrate what performance marketing is:
- Cost Per View (CPV) Campaigns: Marketers only pay publishers when their video ads are watched for a specific amount of time, like 15 seconds.
- Cost Per Mille (CPM) Campaigns: Marketers only pay publishers when their ads are actually seen by a specific number of people, usually 1,000.
More traditional marketing campaigns operate in reverse fashion. Advertisers pay publishers up front, publishers run ads, and advertisers hope said ads produce favorable results for their company. There’s nothing wrong with this approach—especially when the goal is to boost brand awareness. But many app marketers see the benefits of performance marketing.
By paying for results, marketers are able to take full advantage of their ad spend. This often leads to more successful campaigns than the traditional marketing approach can provide.