What is Performance Marketing? Concept and Channels

By: Job Hai | December 7, 2022 4 min read
What is Performance Marketing? Concept and Channels

Differentiating viable advertising and marketing techniques is crucial to developing your business. They help you identify and connect with your target audience, create brand affinity and recognition, and influence consumer behavior. Much like a road map, it helps business owners achieve their goals and grow their operations.

We use the term “digital marketing” all the time. There are many different types of digital marketing. The channels and capabilities of each are getting better and better by the day. But what is performance marketing?

What is Performance Marketing?

Performance marketing is an often overlooked digital marketing strategy. Performance marketing is a broad term for online marketing and advertising programs. Advertisers only pay when a certain threshold is met, and publishers can pay when explicit activity occurs. For example, the advertiser only pays when a customer makes a purchase.  In layperson’s terms, it is marketing based on performance.

What is the Performance Marketing Concept?

Advertisers put their ads on a given channel and pay based on how that ad works. No channel shows everyone the ads available all the time. So how do the different platforms choose what to play? A mix of the following factors comes into use based on the following,

1. Target Viewers

 You can target your audience by creating audience segments on each advertising platform.

2. Bid

The current advertising environment requires programmatic features to decide what is played. These programmes consider the amount of money – the bid – you have committed to pay to have your ads displayed. This is then compared to the value of your selected audience at a specific place and time.

3. Relevance and Quality

The biggest problem people have with advertising of any kind is trust. The result is ad performance tracking. The network will reduce the number of impressions of your ad if it receives a poor rating and fails.

4. Conversion

The economics of performance marketing is based on customers taking action. The network is not compensated unless the necessary measures are taken. So when it works, your ad gets more attention, and you only pay when you have also benefited.

What are the Performance Marketing Channels?

1. Social Media

Social media is usually used to gain traffic, increase engagement, make leads and sales, and grow brand awareness. With the limitations of organic reach, paid content is key to increasing a post’s performance.

2. Native advertising

Promotes sponsored content using a website or page’s natural look and feel. Native advertising is effective because it allows your sponsored content to logically coexist with other types of organic content.

3. Search Engine Marketing 

Search engine marketing, also known as PPC or paid search advertising, unites local advertising through sponsored search results with other forms of marketing.

4. Mobile Advertising

Mobile devices are one of the most desired targets for performance marketing. They’re a new variety of attention-seeking mobile ads.

5. Programmatic Display Advertising

One of the most successful ways to drive results through a marketing campaign is through programmatic media buying. 

6. Video And CTV

Engaging, high-production value video ads offer great engagement. They offer advanced targeting and drive performance in a way traditional network television commercials cannot fight with.

7. Content Marketing 

Content marketing is solely focused on educating your audience. It aims to draw attention to your brand and provide users with helpful information.

What does a Performance Marketing Manager do?

The Performance Marketing Manager is responsible for,

  • Management of digital accountants 
  • Expanding the channel mix using paid social channels
  • Focusing on-specific results
  • Handling the marketing department’s commercial performance.


With the future of digital marketing looking more bright each year, using performance marketing channels can help you extend your advertising efforts. Performance marketing helps to meet the company’s needs without breaking the border.

Performance marketing is a creative and productive way to transform your audience and widen your reach, all while capturing valuable data. Moreover, if you marketing enthusiast and want to join a marketing company, you can check Job Hai, as it has various listings in the field.


Q1. How does Performance Marketing help in Business?

Marketing performance is the order between the marketing team’s stated goals and objectives against actual results. It is measured using metrics and key performance indicators (KPIs), including return on investment, cost per sale, lead per lead, conversion rate, and customer lifetime value.

Q2. What are Performance Marketing Campaigns?

You can measure everything from brand awareness to conversion rates in a single ad with performance marketing campaigns. As advertising becomes more direct, advertisers look past branding to build marketing strategies with proven returns on investment.