Is Performance Marketing important?

If you said yes, chances are you’ve done or been doing it. So what is performance marketing? It is a strategy that allows you to pay affiliates, advertising publishers, or performance media marketing agencies based on agreed-upon performance instead of a flat fee. Also called online performance marketing or performance media marketing, it combines advertising and brand marketing activities, focusing on measurable results to determine the payout. Putting out a branded post on a top-tier publisher or placing an ad on YouTube are a couple of examples of performance marketing channels.


Performance marketing spends in Australia,  has seen a steady rise, reaching $1.2 billion in 2020, according to a study by PricewaterhouseCoopers, in partnership with the Performance Marketing Association. Further, the choice to adopt this strategy is mostly due to its “Measurability, trackability, attribution and compelling return on investment.” Attribution is a major draw here because it shows you the direct link between investment and result, such as the exact ad dollars spent to enhance the sales of a product. With a clear path to customer acquisition and conversion, brands can reduce ad spend while maximizing ROI. This article aims to provide you with a working definition and an awareness of its importance.


In the context of holistic marketing, does this marketing work? Before we delve into the dynamics of digital performance marketing, let’s look briefly at how traditional advertising works. For the last century or so, brands have pushed their marketing messages through traditional media like newspapers, magazines, television, radio and billboards. As the competition gets tougher, it is important to concentrate your budget on marketing channels that bring tangible results. Opt for services that allow you to measure and produce data that drives better business and marketing decisions.


These days, affiliates share the “Publisher” label and the market with influencers, content creators, and other marketing partners. Outsourced program managers: This group comprises any full-service digital marketing agency offering services or a performance marketing company. Have you ever encountered and been confused by the digital marketing comparisons? Let’s clarify the difference for a moment. It’s a broad field that includes search engine optimization, email marketing, content marketing, social media marketing, and video marketing.

They share similar features and fit the performance marketing definition: solutions you only pay for when desired actions occur. If you go beyond classification and consider purpose, this strategy is designed to achieve digital marketing goals. So instead of puzzling over the better option.

Sponsored/Content/Advertising. When done properly, branded content proves to be one of the most valuable examples of performance marketing services. The brilliant thing about paid advertising on social media is that you have access to marketing performance data. Search engine marketing comprising both search engine optimization and paid search, this performance-based marketing channel is focused mostly on the latter. Pay-per-click marketing, the most popular paid search model, places your ad above the fold to bolster your search results visibility.  A 2021 study said PPC was the second most effective SEM channel to increase sales, next only to SEO.


What is affiliate marketing? While it is often mistaken as digital performance marketing, affiliate marketing is just one of the channels. This performance marketing strategy has a simple premise: Merchants pay commission to affiliates for every referral or transaction. Are programmatic Display Ads important?  An experienced performance marketer would recommend programmatic display with caution. If you find a performance marketing agency with the right skills and tools, you may be able to get your ad displayed on sites that are proven to drive marketing performance. What does a brand, performance marketer or performance marketing company measure to ensure growth goals are met?


The most common metrics are qualified leads, sales, mobile app downloads, site traffic, repeat site visits, and engagement. If you’re not sure how to determine the appropriate target outcome, leverage the expertise of an agency. This is why enlisting a professional to help you craft your strategy around your company goals is helpful. A good strategist should be able to hear what your goals are and translate them into actionable metrics to track as well as make sure they are being tracked correctly. The disadvantage of digital programmatic marketing is that it is driving revenue and other significant results for brands in the digital age.


It is still possible to waste money if your marketer is new to the approach, failing to optimize campaigns, and spending inefficiently. Misaligned marketing partners and fraudulent affiliate marketing activities may also threaten your strategy.

Performance marketing has plenty of advantages and benefits that align with the data-driven, results-oriented digital landscape. What we’re saying is that performance marketing is a part of holistic marketing, and it fulfills its potential if practiced with fellow components, internal marketing, integrated marketing, and relationship marketing. The services mentioned above also work hand-in-hand with other digital marketing channels like SEO, conversion rate optimization, and video marketing.


Digital Elite, is the go-to online marketing agency with proven capabilities that outmatch that of a performance marketing agency.