What is Performance Based Marketing?
Performance based marketing is the advertising technique by which referrers of products/services are paid commissions for referring to it. The sorts of referrers that generally participate during this form of advertising model are typically affiliate advertisers, partner sites and online page publishers.
They are paid commissions for referring to targeted “activities” that a user is expected to perform through the campaigns. It can be Ad clicks, submitting information, making a purchase and much more. These actions will take users from affiliate websites to the advertisers website.
Performance based marketing is an ideal choice for advertisers, since you have to pay only when the required actions are taken from the users side .
Key Points of Performance Based Advertising
- First is promotions that may attract the attention of the audience. If you want to succeed you have to create appealing and high-quality ads.
- The second important point is displaying Ads on the right keywords and platforms. This is often called targeting. It involves planning the age of your targeted audience, their gender, and the time of going live with your campaign.
- The third key point is to create user-friendly landing pages. Having a good landing page is extremely important for the final conversion.
- Last but not least is to analyze the different techniques and campaigns and to tweak it so as to achieve the required outcome or objective.
- Drop us a text today and we will assist you with the performance-based marketing services.
Different models of Performance based marketing
- CPM (Cost per Mille)
It is the performance based marketing model in which the advertiser has to pay for impressions. The amount depends upon how frequently the campaign is shown to the audience. The problem with this model is that the advertiser charges for the campaign whether or not the targeted audience clicked on it or not.
- CPL (Cost per Lead)
It is the performance based marketing model in which the affiliate is paid a commission every time a visitor submits data or information into the form on the page or the landing page of the advertiser.
- CPV (Cost per View)
It is the performance based marketing model in which you have to pay for every advertisement or video that is viewed. It resembles video advertising .It allows to gauge how well engaged your audience is with the video.
- CPC (Cost per Click)
It is the performance based marketing model where you’re paying a referrer on the clicks. It takes into account how frequently a visitor clicks a promotion and as indicated by that, the promoter gets commission. To get most out of CPC advertising campaigns you should use them with high quality content
- CPA (Cost per Acquisition)
It is the performance based marketing model in which the referrer or affiliate is paid a flat rate commission. It’s the most widely used technique in performance based advertising.