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Beginner's Guide to Performance Marketing and How to Increase ROI

Writer's picture: Abhishek ChaturvediAbhishek Chaturvedi



The world we inhabit today offers expanded possibilities for digital businesses, but it also comes with challenges such as a growing competition alongside the constant need to deliver marketing performance metrics. While they are dire needs, they are not impossible to fulfill. For example, performance marketing is an emerging strategy that businesses utilize to get measurable outcomes, allowing them to only pay for what they gain in return (whether that is clicks, sales, or leads). This guide is for those who do not have a deep understanding of performance marketing.

How Performance Marketing Functions

Performance marketing is digital advertising where advertisers only pay when a particular interaction task is completed. This method is vastly different from traditional marketing where brand awareness is key. Performance marketing is, as the name clearly states, based on performance driven actions which makes it cost effective for business of all sizes.

Search engine marketing (SEM), social media advertising, affiliate marketing, native advertising, and programmatic advertising are some important channels used for performance marketing.

Search Engine Marketing includes paid advertisements on search engines Google and Bing, while social media includes campaigns on Facebook, Instagram, LinkedIn and TikTok. Affiliate marketing is the strategy where you partner with the affiliates to promote your products or services for a fee. Programmatic AI helps in automatically buying ads.

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