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Learn What is Performance Marketing in Holistic Marketing: Complete Guide

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With the scope of digital marketing increasing day by day, it is imperative for companies to invest time and effort in the right manner. In this article, we will touch base upon what is performance marketing, how to leverage it for your business, and the different kinds of performance marketing you should invest in. 

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What is Performance Marketing? 

Performance marketing is used to describe marketing techniques where advertisers only pay when a specific action is completed. This includes generating a sale, lead, a click, form submission, etc. If you’re wondering what is performance marketing in digital marketing, then read on. 

The various types of performance marketing include –

Social Media Ads: Marketers can choose from Instagram, Facebook, Pinterest, Snapchat, etc. LinkedIn is a great place to keep professionals engaged as well. 

Native Advertising: Native targeting helps with repurposing content, educating customers, and informing them of your brand. 

Sponsored Content: Through sponsored content, you can easily capture the attention of your target audience by partnering with influencers or experts within the field.

Performance Partnership: Partnerships such as affiliate marketing have become very popular. Read more on affiliate marketing here. 

What is the Importance of Performance Marketing?

We’ve listed below the importance of performance marketing for your company – 

  • Planning

Performance marketing campaigns are comparatively easier to plan and budget as well as it provides you with cost per action.

  • Increased Control over Budgets

The most valued advantage of performance marketing is being able to pay for results without the commitment as they are driven by performance metrics.

  • Track Performance

As performance marketing is more or less digital, it is easier to track performance results in real-time. These metrics include conversions, number of clicks, and impressions. 

  • More Positive Results

If a certain headline or copy works well and gets a good response, then marketers would use the same for other formats as well. This can lead to more positive results. 

How to Build A Performance Marketing Strategy? 

Here’s how you can make your own performance marketing strategy for your company- 

1. Set Campaign Objectives

Before starting out, ask yourself what is it that you’re trying to achieve. This requires a detailed list of goals such as brand awareness, increase in website traffic, engagement, etc. 

2. Understand Your Existing Marketing Presence

Understand what your online presence is like and which area really needs improvement. Work accordingly. 

3. Identify Your Target Audience

Who is your target audience? Sketch a buyer persona and tailor your communication towards them. Target these groups of customers.

4. Choose your Digital Channels

Once you’ve identified your buyer persona, choose your digital marketing channels. Which channels is your target audience most likely to be on? 

5. Create a Plan

Having a plan in place will allow for you to have traceable goals and also a proper plan in place so you don’t miss out on any important date.

6. Launch the Campaign

Launch the campaign by crafting ads, and messages that grab the attention of your target audience that enables them to make a conversion. 

7. Analyze

Analyzing is your strategy is working in your favor or not is crucial. Once you’ve analyzed the results, apply these findings to your performance marketing framework. You can also maintain a performance marketing pdf with all your findings for future reference. 

How to Measure a Performance Marketing Strategy?

Here’s how you can measure a performance marketing strategy – 

  • Revenue and Sales

The first and most obvious way to measure the effectiveness of a performance marketing strategy is how much revenue or sales has it generated.

  • Leads

Tracking each stage of a customer journey and understanding where you got most leads from and track them. 

  • Customer Loyalty

Customer retention and loyalty are metrics that say a lot about your performance marketing strategy. It translates to how well your customer liked your user experience. 

  • Brand Awareness 

Another important metric is brand awareness. How well do people recall your brand? This is a major goal for any performance marketing strategy. 

There are many performance marketing tools that can even help you out with this. 

Examples of Performance Marketing

We’ve listed a few examples of performance marketing – 

  • Avon

What is Performance Marketing - Avon Example

\The beauty brand produced a video on women empowerment in Brazil that covered women’s issues such as gender inequality and breast cancer. Avon was able to track the ad’s performance using Outbrain’s technology.

  • Outbrain Search Campaign

What is Performance Marketing - Outbrain Example

Recently, Outbrain carried out paid search ads for users that searched ‘Outbrain’ on search engines. The campaign performance was received well – CTR – 19% and the ROI was a staggering 2000% For every $1 spent, the return was $20.

Performance Marketing Trends To Look Out For

Here are the top performance marketing trends to look out for in 2021 – 

  • User Experience

A positive user experience should not be underestimated for better conversions and leads. 

  • Conversion Rate Optimization

CRO marketing goes beyond A/B testing or split testing. It is imperative to understand that brands today invest heavily in conversion rate optimization for increased ROU (returns on investment). Read more on CRO marketing here.  

  • Artificial Intelligence is the Future

Brands, big and small are using artificial intelligence for performance marketing. This includes using audience creation, audience segmentation, ad placement, conversion rate optimization, and also improved personalization techniques.

  • Email Marketing

Make sure your newsletters have personalized content for a richer user experience and for them to feel valued. 

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Q. How is performance marketing used?

Performance marketing is used to help scale engagement, reach, and also conversions at lower costs, risks, and higher ROI (returns on investment) than other channels. 

Q. What is the difference between performance marketing and digital marketing?

Digital marketing uses online channels to send out any communication to the right audience at the right time. Performance marketing is a kind of digital marketing that involves a payment model with which you make a payment for a certain action. 

Q. What is the difference between performance marketing and affiliate marketing?

Affiliate marketing is a subset or type of performance marketing. 


We hope you enjoyed reading this article on performance marketing. Let us know in the comments below how you plan on using it for your business. 

If you’re looking for an in-depth course that covers all the digital marketing modules along with practical offerings such as resume building, check out this MBA Level Post Graduation Programme in Digital Marketing.

But if you feel this is too much of a commitment of time, check out this 3-month online comprehensive digital marketing course.

Founder and CEO at IIDE

He is a passionate public speaker and teacher for over 10 years. He has trained over 60,000+ students and 25+ corporates in Digital Marketing via online and offline channels. He is a Harvard alumnus specialising in E-commerce......[Read full bio]

Karan Shah


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