What is performance marketing?

Performance marketing is a marketing model focused on improving a company's business.

It includes all the activities necessary for monitoring the performance of an advertisement and improving it.

In practice, promotional messages received and the importance that the consumer has given to the content are monitored.

Once effectiveness is measured, tailor-made promotional campaigns are created for one's own target audience and can be modified in real-time based on ongoing monitoring.

Performance marketing metrics

A performance is nothing but the result of the effectiveness of an advertising campaign.

Measuring results is the foundation of any performance marketing campaign, the most commonly used metrics include:

• Click-through rate (Click and open rate): this metric allows to measure the number of clicks on a call to action or a specific link. The click-through rate can reveal two important pieces of information: the actual effectiveness of a campaign and the origin of the clicks;
• Conversion rate: through the conversion rate it is possible to measure, indeed, conversion rates. This metric can be used to monitor, for example, the number of subscriptions to a  newsletter or the number of downloads made;
• Social Metrics: by monitoring social metrics, it is possible to understand user behavior and their online activity towards the company in question and allows gathering important information to implement and improve one's business strategy;
• Post Views: through post views, one can understand how interesting content is for their target audience.

Each metric allows monitoring the various performances of a company enabling targeted and effective sales strategy planning.

Benefits of Performance Marketing

Developing performance marketing actions brings several benefits, namely:

• This advertising branch is growing;
• There are greater opportunities to earn revenue with mobile strategies, lead generation, and pay per action;
• Its strategy allows for a better understanding of how to improve the return on investment;
• Performance marketing campaigns offer an instant conversion;
• The advertiser knows in advance and exactly the unit cost of each action;
• You can use different online tools;
• It allows for greater control of the results.

In conclusion, performance marketing is an excellent communication vehicle between producer and consumer and is a beneficial form of advertising because the buyer only pays when measurable results are available.