In performance marketing, the marketer or advertiser will only pay based on the performance of the campaign being run. Performance marketing is a general term in online advertising and marketing in which a brand or company that is an advertiser will only pay publishers based on the results of the campaign that has been run, such as sales, leads, clicks, or other conversions. This practice is different from the marketing model in general, where advertisers or brands pay in advance without any guarantee that they will get the desired results. Conversely, in performance marketing, the brand or advertiser only pays the publisher for the actions (sales, leads, or clicks) that are successfully obtained in the run’s marketing campaign. For this reason, performance marketing is considered an attractive alternative for today’s digital marketers.
Performance marketing itself can be carried out on various digital marketing channels, such as display advertising, native advertising, sponsored content, search engine marketing, social media marketing, and affiliate marketing. It should also be understood that in carrying out performance marketing, there are several groups or parties that are usually involved, including:
Brand or retailer
These are parties such as brands, merchants, retailers, or advertisers who want to promote their products or services through certain publishers or affiliate partners.
Affiliate or publisher
Affiliate or publisher refers to the party promoting the product or service of the brand or advertiser. Affiliates or publishers themselves can come in various forms, such as websites, blogs, social media accounts, and others.
Affiliate network and third party tracking platform
Affiliate networks or third-party tracking platforms connect brands and publishers, especially in managing campaigns and tracking campaign performance such as clicks, leads, and conversions.
OPM or Outsourced Program Management
These are companies or advertising agencies that run marketing campaign services for brands that don’t want to manage them themselves. OPM usually offers services ranging from creating marketing strategies, determining publishers, designing campaign designs to optimizing campaign performance through various online marketing practices.
Once you know the platform for your performance marketing, then you should take follow-up for it. It includes learning the strategy for performance marketing, applies the strategy, and monitor the performance to evaluate. The most important thing in this kind of marketing is to evaluate to determine a better strategy for better results. This marketing could be so great for the business owner who wants to use the effective budget for their digital marketing.