BrainTaza Team

In this article, you will learn about performance marketing, and how it works. Additionally, you will learn about performance marketing channels and its benefits.

What Is Performance Marketing?

Performance marketing is a digital marketing activity carried out by a team of experts on already optimized inventories with premium ad copies. A team of experts can be in-house or a performance marketing agency. This is a completely recognized industrial practice in advertising.

How does Performance Marketing Work?

The advertiser pays on the basis of the performance of the campaign. There are different ways to reward the performance of marketing efforts. The best ones in the market are below one in detail and how to calculate.

CPM – Cost per impression basis payment, the publisher charges one per 1k impressions or 1000 impressions viewable.

CPC – Cost per click per engagement clicked on the banner ads for display campaigns. For the search campaign, the charges are per click after a searched keyword.

CPS – cost per sale method only charge the advertiser when a sale is happen. This is the primary model that is very famous in affiliate marketing.

CPL – cost per lead to generating high-quality leads for banking, finance service, and insurance sector.

CPA – cost per acquisition for sale, booking, or any action that says that the user is acquired by the campaign.

Performance Marketing Channels

Display Ads

Display Advertising is showing ads to visitors on websites and mobile apps. It comprises only text or text and images to attract a visitor to convert into a customer. The best example must include a logo, CTA text, and an image that encourages the visitor to start a journey to know the product and service. This depends on the inventory to determine the layout of banners and place of displaying advertising.

Native Advertising

Native advertising is a part of content marketing and focuses on nurturing visitors to turn into customers. However, some brands use this as display advertising to attract more visitors.

Content Marketing

Content marketing can be used for various purposes such as increasing brand awareness, generating leads, driving website traffic, or even improving customer engagement. By creating content that resonates with the target audience and providing them with valuable information that they need or want to know about your product or service you can build trust and loyalty with them which will eventually lead to more conversions. It is used to drive profitable customer action by building trust and loyalty with the target audience.

Social Media Marketing

Social media marketing is the process of using social media platforms including but not limited to Facebook, Instagram, LinkedIn, and Pinterest to promote business. You can use social media to share content that helps you engage with customers and prospects. This content can include blog posts, videos, images, infographics, and other types of content that are relevant to your industry or company’s goals.

Search Engine Marketing

SEM is a highly competitive field, with many players trying to get ahead of each other by creating content that’s well-targeted, keyword-rich, and easy to find. SEM is a set of techniques that help you increase the visibility of your site in organic and non-organic. Cost per click is essential for performance marketing and content marketing with SEO for non-paid.

Benefits of Performance Marketing

Performance marketing is one of the best digital activities to get users onboard. Let’s discuss below the benefits of performance marketing.


The ROAS(Return on Advertising Spend) is very high in more than 50% of cases in comparison to Google Ads and Facebook Ads. It is because of the high interference of humans and tech persons to improve the ad experience for users. The results are always high and generate great revenue for advertisers in the long term. The ROAS provided by Google and Facebook is quite low or not comparable during the first two months because of advertising on high numbers of inventories. There are more benefits to working on performance marketing for sure these are the few ones to start with.