What is Performance Marketing?


Performance marketing is a data-based strategy in the context of digital marketing. Digital marketing in turn summarizes all online activities of a marketing strategy.

With the rapid growth of online marketing, the term performance marketing has also gained importance. In performance marketing, the interactions with the targeted target group are converted into KPIs, which are used to align the campaign’s activities. These can be measurable numbers such as the click rate, the conversion rate, or the impressions. The goal is always maximum efficiency. With the help of clicks, leads, or completed sales, the success of a measure is determined and the costs of the individual actions can be scaled. The basic elements in performance marketing are measurability and optimization to increase efficiency.

  • Measurability: The interactions with the user are recorded quantitatively and converted into KPIs. These form the basis for ongoing optimization of the measures.
  • Optimization: Every single online activity that takes place as part of a campaign can be measured separately and compared with others. Optimization approaches can be derived from the data obtained. Even in existing campaigns, larger or smaller adjustments can be made on an ongoing basis to guarantee overall success.

Which Areas Are There In Performance Marketing?

Four different areas build on each other in terms of time and logic. You start with the goal setting, then select the appropriate tools that will be measured and optimized over the course of the campaign. At the beginning of every marketing campaign, there is goal-setting. In the case of performance marketing, the goals must be easily measurable. You can orientate yourself on different aspects when setting goals:

  • Marketing goals like increasing awareness
  • Corporate goals such as maintaining market share
  • Goals with a focus on the customer such as strengthening loyalty
  • Campaign-relevant goals such as increasing the number of visitors

The second step is to find appropriate measures that will best achieve the objective. You can choose from various online marketing instruments:

  1. Search Engine Advertising: Paid advertisements are placed under the keyword SEA (Search Engine Advertising). The aim is to improve the ranking.
  2. Search Engine Optimization: Measures within the framework of SEO (Search Engine Optimization) also aim for a better ranking. Thereby one wants to be found optimally in the organic results of the search engine. Functioning SEO measures are, for example, keywords, indexed pages, or backlinks.
  3. Display Advertising: This is understood to be graphic ads such as banners that appear on target group-relevant websites. For example, the impressions or the click-through rate are counted.
  4. Social Media Marketing: This means all marketing activities on social media platforms from building your community to paid ads.
  5. E-mail Marketing: The sending of e-mails can also be integrated into a performance marketing campaign in a variety of ways. Possibilities are, for example, offers, feedback, or reminders by email. Sending a newsletter also falls into this category.
  6. Affiliate Marketing: For some campaigns, the placement of offers on relevant websites is suitable. As part of affiliate marketing, you only pay for it when the link is clicked.

If the measures taken are running, the success numbers are measured for each instrument. This makes the effect visible and can be analyzed. Tools like Google Analytics help and allow a detailed analysis of the measured results. The most important metrics include clicks, traffic, conversion.

Performance Advertising and Billing

Advertising in the context of performance marketing also follows the performance principle. The billing depends on the success of the paid advertising measure. Various billing models are available for this:

  • CPC: Cost per Click: A certain amount is due for each click.
  • CPA: Cost per Action: Pay for a specific action.
  • CPL: Cost per Lead: Costs are only due if a user leaves their contact details.
  • CPS: Cost per Sale: Payment is only made if the sale is successful.

Performance marketing alone is not a guarantee of success for your company. The more colorful the bouquet of marketing measures, the more successful the entire arrangement. As part of performance marketing itself, the achievement of the set goals depends on competence in analyzing and evaluating the data collected. So deal with the matter in-depth so that you can benefit optimally from performance marketing. Get in touch if you need support for your online marketing strategy.

5 Steps In Performance Marketing

One of the most important goals for any marketer is undoubtedly to create successful and functioning marketing campaigns. But how exactly can this be achieved? Marketing campaigns are becoming more and more complex. There are many variables and details to consider, but also great complexity in almost all of the processes involved. In this article, we’re going to introduce you to important approaches you can take to improve the performance of your digital marketing campaigns.

  1. Set measurable goals
  2. Select channels and allocate budgets
  3. Define KPIs
  4. Constantly optimize the campaign
  5. Permanent monitoring / controlling

Expertise in handling the analysis tools is important for the success of performance marketing. You should also be well versed in evaluating the key figures determined. Because that is how the success of your optimization measures stands and falls. If you analyze and evaluate competently, then the required effort will be offset by the continuous perfecting of the measures.

We would like to give you a few ideas on what to consider when planning your digital marketing campaigns. Of course, other factors determine success or failure. However, the following points should provide an important first overview of how you can improve the performance of your digital marketing campaign. Read these through before you start planning your next marketing campaign.

  • Dozens of templates for data-driven marketers
  • Expert tips on how to improve your marketing
  • Checklists and how-to guides for campaign optimization
  • Best tools for AI in marketing
  • Recorded webinars

We have listed many approaches to improve the performance of your digital marketing campaign by planning, implementing, and considering these points before starting your marketing campaign. As you can see it is all interrelated and for your paid campaign to be successful there are many other things to consider before creating your ad and clicking “Start My Campaign”. Nonetheless, in the modern world where Artificial Intelligence (AI) has already been proven to provide help and has proven to be a more efficient and often more successful option for marketing, the same can be said for the performance of marketing campaigns.

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