Everything You Need to Know About Performance Marketing

With the current rate of rapid digitalisation happening across all the sectors, the business world is becoming more and more performance-oriented day by day. Getting the desired results has become a priority, leading to innovations in various fields. Marketing is one such domain that relies a lot upon the results and performance yielded by the marketers. Nowadays, many companies are taking the help of digital marketing to help enhance the reach of their products at an international level. They hire specialists from different marketing domains to help them achieve their objectives. Performance marketers are one such professional in huge demand nowadays.

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What is Performance Marketing in Digital Marketing?

As the name suggests, performance marketing is a type of digital marketing in which the payment of the marketers is made when they achieve the desired results. Every company has its own set of performance goals they wish to achieve, such as generating leads, completing the sales target, getting social media engagement, website traffic, etc. The compensation is based on the performance of the marketers, who are always on the lookout for innovative marketing strategies to facilitate the enhancement of the results.

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How is the performance of the marketing campaigns measured? 

Employers also need an idea of what are performance marketing campaigns and the results they produce. The performance of the marketing campaigns can be easily measured with the help of various key performance indicators (KPIs). These provide a more precise idea regarding the success and failure of the marketing strategies and also offer a way to draw valuable insights. Some of the most commonly used indicators are mentioned below

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Pay Per Click (PPC)

The marketers or the affiliates are paid on the number of total clicks on the desired page. This is a very transparent method and is widely used by many retailers. 

Pay Per Lead (PPL)

A lead is a potential customer. It means someone interested in the products or services offered and can pay for the services in future. Marketers are paid based on leads they generate using the marketing strategies.

Pay Per Sales (PPS)

This involves payment on the basis of the number of products or services actually sold in the market. 

Lifetime Value (LTV)

This defines the lifetime value that the customer provides during his/her relationship with the retailer. 

Pay Per Impression (PPI)

This is yet another way of payment method. Here, advertisers are paid according to the views of the ad or post. 

Various Forms of Performance Marketing

Various advertisers and marketers use different types of performance marketing methods according to their convenience and needs. What is performance marketing in digital marketing can be explained more clearly with the help of its various forms mentioned below

Content Marketing

One of the most widely used marketing methods involves presenting valuable content online in the form of blogs, case studies, etc. This helps build credibility and audience, which can further help generate sales. You can promote your brand while providing helpful information on your industry. This strategy is followed by many companies all over the world.

Social Media Marketing

Social media has become a standard hub for marketers and advertisers for the wide popularity and outreach it offers. It also helps cover a vast geography and helps expand the world. Marketers use many innovative strategies to grab eyeballs and set the trend, which provides a massive increase in the sales and revenue of the firms. 

Search Engine Optimisation (SEO)

Being ranked higher on the search engines leads to an increase in traffic to the website, which helps increase sales. Stellar content without being search engine optimised yields no returns. Many advertisers pay according to the results by Pay Per Click (PPC) obtained by marketers.

Native Marketing

Native Marketing, as the name suggests, promotes the content with the help of the natural appearance of the website. It enables the promotion of content seamlessly, and it integrates well with the website. 

Advertisement Marketing

This involves proper advertisement on various platforms such as Facebook, news platforms, etc. These sponsored ads can be found everywhere on the Internet, although they are slowly losing their appeal. Many people use ad blockers that restrict these ads strictly, which fails the purpose of these ads.

Benefits of Performance Marketing

To answer the question of what is performance marketing campaigns campaigns’ benefits, a detailed analysis of the points is mentioned below


As the compensation is tied to the results, marketers put in a lot of effort and look for innovative ways to make the marketing campaign as efficient and result-worthy as possible.

Enhances reach

Through various performance marketing methods such as social media and search engine optimisation, the online reach of the company gets enhanced. This helps garner customer interest and positive feedback, which helps increase the revenue in the long run.


If you deliver the promised results to your employers or clients, you build your credibility in the field. You get more opportunities and tasks when you produce better results. 


As compared to the traditional methods of marketing, performance marketing is relatively more affordable. Also, brands prefer this because they are guaranteed a sure-shot result for the money they pay. Companies can reach a wider audience at a much more affordable rate, which can help them grow in the long run. 


As businesses have to make the payment only when they see the results, the investment in marketing makes it completely riskless. This makes it an appropriate form of marketing method which yields a greater return. 

If you are interested in making a career in performance marketing, you can check out the Advanced Certificate in Digital Marketing and Communication from MICA, in association with upGrad. The course is suited for working professionals, making it easier for you to learn a new skill even in a strict schedule.

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The business environment has been changing fast over recent years. This has opened up many employment opportunities for people in different domains. People with varied skills now have the option to make a decent living from the comfort of their homes. The job of a performance marketer falls under this category. This is why many youngsters aspire to make a career in this field.

What is the average salary of a performance marketer?

More companies are establishing their online presence and are taking the help of the Internet to expand their business. Hence, performance marketers’ demand is on the rise. They are paid a handsome salary for their expertise and the results they bring to the company. The average pay of a performance marketer is approximately INR 6.5 LPA.

How can you become a performance marketer?

If you are a beginner, it would be beneficial to learn the basics about the field from a free source like YouTube. You can also take up shorter courses to dive deeper into the area. Additionally, you should look for internships to gain practical experience in the field.

What do you mean by affiliate marketing?

It is a subset of performance marketing in which the affiliate earns profit by helping in the promotion and marketing of another brand’s product. Affiliate marketers or managers act as a link between the company and customers.

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