What is Performance Marketing?

Performance marketing is a marketing model where the advertiser pays for certain actions, such as clicks or sales. In this respect, performance marketing differs significantly from specific advertising.

In traditional advertising models, payment is made regardless of the success of the ad. Performance marketing pays for actions that result in views, clicks and sales. More popular than traditional advertising in recent years, performance marketing methods are highly profitable for brands and companies. Because it is risk-free, effective and affordable. For this reason, companies that want to advertise their products or services to a wide audience prefer performance marketing practices.

With performance marketing, both the advertiser and the publisher win. To use this marketing method, which belongs only to the digital world, it is enough to share content digitally. The quality of the content shared significantly affects the success rate.

The best example of this type of marketing is product recommendations on blogs. Blog owners who promote products on their blog receive a commission from product sales. If a different agreement has been made, you may also be paid for the number of clicks and views. Performance marketing is 100% measurable and therefore safe for both parties.

Types of Performance Marketing

There are multiple types of performance marketing activities that enable potential customers to be reached easily.

Social Media Marketing

One of the most effective ways to increase visibility and traffic is through social media marketing. This type of performance marketing is more focused on clicks, engagement, likes and sales. In social media marketing, the age range and region of the target audience can be selected. In this way, the advertisement reaches the target audience easily. Brands that want to do this kind of marketing for a specific audience may prefer this marketing method.

Affiliate Marketing

Affiliate marketing, also known as affiliate marketing, is the most popular type of performance marketing. In this system, individuals contract with institutions and payments are tied to action. The marketer directs potential customers to an app, social media page or e-commerce site. Payments are usually calculated based on the number of clicks or the number of products sold.

Native Advertising

Native advertising is an advertising model that has been used for many years. This performance marketing model generally aims to promote without disturbing the Internet user. Users do not experience ad fatigue as it is displayed in harmony with the area where it is published. For example, advertising hotel names and prices on a blog that writes about travel, or advertising airline companies and airfare prices look very natural to blog visitors. Native advertising can be used on many platforms depending on the target audience. Businesses and brands that want to do performance marketing without exposing their potential customers to eye-straining ads may prefer this advertising model.

Display Network (GDN)

Google Display Network is a network that offers the ability to display ads on websites in performance marketing applications. With GDN in the Google portfolio, you can also deliver your ads to Internet users on channels such as Gmail and YouTube. According to Google data, it is possible to reach more than 90% of Internet users by advertising with GDN. This type of performance marketing can reach 2 million users.

User Experience Marketing

In order to use user experience marketing effectively, it is important that site optimizations are well done. In this type of marketing, fast-loading images, easy-to-access buttons, easy interaction and fast-directing links satisfy users.

Search Engine Marketing (SEM)

SEM, which enables reaching the targeted customer base in a short time and at low cost, helps to rank high in search engines. In addition to Google, SEM can also be traded on platforms such as Instagram, Facebook, Google Plus, Linkedin, Twitter, Pinterest and Xing. Here are some advantages of using SEM for performance marketing:

Increases the incidence on the internet.
With Cost Per Sale, customers can make secure payments.
Builds trust in the company or brand.

Remarketing

Remarketing system is cookie based. It tracks the Internet user visiting the website and when they leave the site and go to another site, it shows the user an advertisement for the website they just left. The goal of this performance marketing system is to return the user to the site they just left.

Search Engine Optimization (SEO)

The main goal of this performance marketing method is to ensure that the brand or company is at the top of the search engine result lists. The vast majority of users visit sites that appear in the top rankings when they query with search engines. Visits realized in this way also positively affect site traffic. Brands or businesses that want to do performance marketing are first recommended to do SEO work for their websites. Thanks to the many optimizations made within the scope of SEO studies, the speed of the site increases and performance marketing becomes effective.

How to do Performance Marketing?

It is important for brands and companies that want to do performance marketing and deliver their products to their target audience to first determine their target audience and get to know this audience. Because the most important element in performance marketing is the target audience. Knowing the areas the target audience visits and other preferences is useful for choosing the most ideal performance marketing method. Various analyses are required to access this information. Performance marketing can be done on the most ideal social media platforms in line with the preferences of the target audience.