What is Performance Marketing?
September 30, 2011 # 2:25 pm # Expert Guides # 6 CommentsPerformance Marketing is a method of interactive advertising which pays on a “performance” basis. Sometimes the term Affiliate marketing is used interchangeably, but they are not actually synonymous.
Performance Marketing pays out only on a completed action. Often the action is based on a sale (Cost Per Sale) or a lead (Cost Per Lead), but can also be other revenue models including Cost Per Download.
Most people think of Performance Marketing as being affiliate marketing, but affiliate marketing is just a subset, although large part of, the Performance Marketing community. Affiliate Marketing is generally a cost-per-sale, revenue sharing model where affiliates receive a portion of the sale of any product. However, much of the online advertising industry is focused on a performance basis, and many advertising banner networks, PPC networks and other platforms currently take performance based advertisements as part of their sales.
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Thanks for this great explanation!
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Nice post, i found it very interesting and well written. I hope to read more of your stuff in the future.