Performance Marketing FAQs

Digital Marketing / Online Advertising / Performance Advertising FAQs

FAQs: Performance Marketing

(Performance Advertising)

 

What is Performance Marketing?

This is an all-encompassing term that refers to online marketing and advertising programmes and campaigns where marketers and online publishers are paid when a specific action is completed. This can be a sale, a lead, a click etc with payment being on an agreed amount, a percentage-based commission, a profit-share or a revenue-share.

Unlike other forms of traditional advertising where fees are paid up front and do not depend upon the success of the advert, merchants or advertisers in performance marketing only pay for agreed successful transactions.

Deal Locators uses this model to work with businesses to promote their products to the end-user who, in the majority, is the consumer.

What Makes Performance Marketing Special?

Performance Marketing is a combination of advertising and innovation that helps merchants (sellers) and affiliates (online publishers) grow their businesses in ever-changing ways. Campaigns are highly targeted to create win-win opportunities for both merchants and affiliates.

What Makes Performance Marketing Different from Other Forms of Advertising?

Unlike other forms of traditional advertising where fees are paid up front often on the basis of “space” and/or “location” and where the fee does not depend upon the success of the adverts, advertisers in performance marketing only pay for successful transactions. Performance marketing has successfully reversed the traditional concerns over “advertising value”. And because it is IT-based, it allows for real-time measurement of ROI.

Why Performance Marketing rather than buying Ad Space?

There is a far greater potential for businesses with Performance Marketing compared with traditional advertising and marketing services. Performance marketing has not traditionally existed because is not really feasible outside of web and social media.  With, today, ever greater quantities of advertising relocating from traditional print, radio and TV to the internet and social media (including You Tube), businesses have the opportunity to vastly increase their sales without the traditional up-front cost of advertising and marketing.

Additionally, a Performance Marketing campaign is likely to have greater longevity than a traditional advertising campaign. Once a successful sales funnel has been established and is successfully working, it should generate far greater sales and higher revenues over the longer term.

What Types of Businesses get involved in Performance Marketing?

There is a whole variety of different types of businesses; advertisers, merchants, retailers, networks, publishers, affiliates, outsourced program managers, agencies, and solution providers. Companies range from small sole-proprietor businesses to publicly-quoted companies.

What Types of Innovation Comes Out Performance Marketing?

Advertisers receive a tailor-made proposition for advertisers in terms of content, targets and pricing. Additionally because Affiliates, who will also be publishing their campaign, are on the front line of content creation, the use of mobile apps & social media, and are very much into niche marketing, the whole product for the Advertiser is very target and driven by the latest technologies and fashions.

How Measurable is “Performance” in Performance Marketing?

Performance marketing is trackable and measurable down to a single click or even to the viewing of an advert (known as an “impression”). Advertisers can measure everything from the cost of acquisition to incremental data like number of new customers or average order value.