What Performance-Based Marketing is and How It Works

The digital environment today is very competitive where every brand is fighting for the attention of literally every potential customer. Therefore, many companies and startups are in a constant search for marketing strategies and techniques to develop the most effective campaigns in terms of return on investment (ROI). This has led to the development of performance based marketing, which is a marketing technique that produces measurable results.

The main problem faced by modern marketers is that their campaigns are not working as effectively as they would like. That’s why more and more marketers are turning to performance digital marketing, which has been hotly debated at various industry events in recent times. We are here to tell you what performance driven marketing is, what its advantages and disadvantages you should consider, and also to give you some useful tips on how to implement this advanced marketing strategy in your business.

What is Performance Marketing?

In today’s world, creating and launching non-data-driven marketing campaigns is something akin to walking blind in the dark. To understand how well your marketing campaigns are performing, you need to get results and evaluate them with various metrics. As far as performance-based marketing is concerned, it is a technique that focuses on results such as link clicks, ad clicks, app signups with deposits, sales, and more.

By looking at the results of performance, you as a marketer can analyze them to make decisions regarding changes to improve performance. This could be anything from adding visual elements to your content, changing the list of keyword phrases, reworking headlines, or changing the format of your ads. Unlike traditional advertising where you’ll pay for impressions regardless of whether potential customers perform the targeted action or not, performance based marketing ensures that you get value from your campaign investment.

However, before we talk about the pros and cons of this marketing approach, you should realize that it is not a magic wand. For example, if your goal is to increase your brand’s online presence, performance driven marketing may not be the best choice. This is also true for other long-term goals of your business, as there are no metrics to measure performance in the long run.

Performance driven marketing works well for smaller campaigns and therefore you should not neglect it. For example, with this strategy, you can track social media followers, impressions and other things to find out at what rate your audience is growing. So, if you want to incentivize actions like visiting your online resources, lead generation and making purchases, then performance-based marketing is right for you.

Advantages of Marketing Based on Performance

So, being one of the latest trends in digital marketing, performance based techniques are being adopted by many businesses operating in different niches. However, before looking for people specializing in it, let’s first find out what advantages it offers.

Ability to Measure Results More Accurately

Through the use of various tools, you can track specific user actions such as clicks, conversions, sales, registrations, app downloads and more. The advantage here is that you can pinpoint which campaigns and marketing channels are delivering the most value. From a marketer’s point of view, this will serve as a basis for further optimization of campaigns. If you’re a business owner, you’ll be able to make strategic decisions based on data. For example, by utilizing Google Analytics or similar tools, you can easily measure ROI and figure out which strategies work best for your business.

Better Decisions Based on Data

Performance-based marketing is much more than just about raw data. With customized software solutions, you’ll have access to analytical reports that clearly demonstrate key campaign metrics. It will also allow you to customize your campaigns in real time for even higher performance. By connecting analytical tools, you will be able to identify trends, predict the behavioural characteristics of potential customers and adapt your marketing strategies to maximize results.

Lower Financial Risks

One of the nice advantages of performance-driven marketing is that you will pay for real results. Thus, your marketing budget will be used much more effectively than when you use targeted advertising or paid marketing channels, for example. Useful for startups and small businesses in particular, this approach means that you won’t waste money on campaigns that don’t deliver results.

More Transparent Marketing Techniques Compared to Others

Finally, yet another advantage of the technique is that you pay for specific actions, which means you can easily see which campaigns and their individual components are really working. Since all the data is on the surface, this eliminates the possibility of deception and hidden costs. Thus, business owners will be able to build more trusting relationships with affiliates and clients.

Performance Based Marketing is What’s Being Discussed Today at Industry Events

This marketing technique is now one of the central topics at industry conferences, highlighting its key features and benefits. Many marketers and businesses enjoy its features such as accurate measurement of results, reduced financial risk and data-driven decision-making. Attracting professionals seeking to maximize efficiency, performance-driven marketing will be discussed at iGB Live 2024 Amsterdam, a major conference connecting iGaming operators, affiliates and providers who are leaders in their niches.

Today the online casino and sports betting industry is booming and therefore many experts are willing to work with a good casino affiliate program to promote iGaming offers and earn commissions. One of the members of iGB Live is gambling affiliate program Affter, a fast-growing company backed by experts with 6+ years of experience in the market. Here are a few features of Affter Affiliates that make it so attractive for gambling/betting affiliates:

• High commission rates. Casino affiliate Affter program offers several payout models including CPA, RevShare and Hybrid with commissions ranging from 20-45% and even higher (negotiable).
• Wide range of iGaming offers. Affter Affiliates iGB member cooperates with both time-tested operators and up-and-coming brands working on 60+ GEOs.
• Transparent analytics and reporting. Casino affiliate Affter program uses a proprietary affiliate platform with S2S Postback and other features enabling you to track the effectiveness of your campaigns for further optimization.
• Wide range of promotional materials. Affter Affiliates offers effective landings, applications and creatives for high conversion rates.
• In-house media buy as well as a focus on mutually beneficial cooperation. Affter iGB Live member experts are well aware of the challenges affiliates face in their daily work and are ready to take on their own.

In addition, you will be able to benefit from a variety of Affter promo offers including free trips to industry events such as iGB Live Amsterdam and exclusive offers designed for important sporting events such as Euro 2024. If the Affter Affiliates is appealing to you, don’t miss the opportunity to network with the affiliate program managers from July 16 to 19 directly at iGB Live Amsterdam.

Disadvantages of Performance Based Marketing

If a performance-driven marketing strategy had no downsides, it would be used widely. However, like any marketing strategy, it does have some downsides that you should be aware of.

You Might Temporarily Neglect Long-Term Business Objectives

Performance marketing is a strategy that works well for small campaigns aimed at quick results. By using this technique, you run the risk of forgetting about the longer-term goals of your business. This means that if you want your business to grow and scale in the long term, you need to incorporate another marketing strategy such as inbound marketing.

Increased Opportunities for Traffic Manipulation

In times when artificial intelligence technology has achieved outstanding results, there are many bots and online services using gray and even black marketing practices. Given the peculiarities of performance based marketing, the risks of performance based advertising fraud and traffic manipulation increase significantly. However, to avoid paying for dubious results achieved by improper ways and means, you can use specialized marketing fraud detection tools.

Challenges Caused by Delayed Results

The essence of performance-derived marketing is that it delivers results within a certain timeframe. If you achieve them late, then you are wasting money. So, when using this strategy, make sure that you get the desired results at the right time.

Is Performance-Based Marketing the Right One for You?

So, if you’re considering implementing this marketing strategy in your business, you first need to figure out if it’s right for your business. Here are a few questions you should answer to come to a concrete conclusion:

• Do you have enough budget to implement performance-based marketing?
• How strong is your business’ global web presence?
• How much time and effort will it take you to learn the basics of this marketing technique?
• How much does your business need the fast results provided by performance digital marketing?

So, for example, if you don’t have the spare cash to implement this strategy or you are currently focused on increasing your brand’s online presence, performance-based marketing may not work for you.

Helpful Tips for Utilizing Performance-Based Marketing Practices

So, you’ve decided that performance in marketing is important to your business. Now, that you know the performance marketing definition and how this strategy works, it’s time to create a plan to implement it. Below are a few tips that you can follow to maximize the benefits of this marketing approach.

Set Clear Goals

To pay for results that are fully aligned with your business goals, first create a plan and set deadlines. Keep in mind that performance based marketing focuses on short-term results. So, integrate this technique into your overall marketing strategy so that it works towards your business’s long-term goals.

Create a List of Relevant Key Requests

To benefit from SEO, analyze your field and make a list of the most popular keywords. Fortunately, today you don’t need to make a list of keywords yourself as there are many online services that do most of the work for you. Once the campaign is up and running, monitor how the keyword phrases are working for your business. Make changes to your keyword list to optimize it.

Track the Results Consistently

To make it easy for you to find weaknesses in your campaigns, you need to constantly monitor the results you get. By finding the points that work for your business, you will be able to use this knowledge to develop subsequent campaigns. In addition, this way you can make timely changes to campaigns that are not working effectively.

Choose Marketing Partners Responsibly

So, one of the disadvantages of performance-driven marketing is the risk of falling for dishonest partners who use illegal marketing techniques. Therefore, choose reliable marketing partners that are aligned with your business goals. In addition, get all the necessary information about the partner and familiarise yourself with the reviews of those who have already cooperated with them.

Closing Thoughts

Performance marketing is not a one-size-fits-all strategy that works for every business. However, it can help you achieve the results you want in a short timeframe. By setting a clear marketing goal, selecting marketing partners responsibly, and constantly monitoring results, you can reap the maximum benefits of this highly effective marketing technique.