Advertising where brands pay only when a specific action (click, lead, sale) occurs.
Performance Marketing is a results-based form of digital advertising where advertisers pay only when specific, measurable actions are completed — such as clicks, leads, app installs, or sales. It encompasses paid search (PPC), affiliate marketing, paid social with conversion objectives, and programmatic advertising. Performance marketing is distinct from brand advertising because it prioritises measurable ROI over reach or awareness.
Performance marketing offers accountability that traditional advertising lacks. Every dollar can be traced to a specific outcome, making it ideal for businesses that need predictable, scalable customer acquisition.
A direct-to-consumer brand runs performance marketing campaigns on Meta Ads and Google Shopping, paying for purchases only. They optimise campaigns based on ROAS data, scaling what works and cutting what doesn't.
Not traditionally. Performance marketing usually refers to paid channels where you pay per action. SEO is earned media. However, the term "performance" is sometimes used broadly to mean any data-driven, measurable marketing.
CPC
Cost Per Click — the amount paid each time someone clicks on a paid advertisement.
CPA
Cost Per Acquisition — the average cost to acquire one customer or lead.
ROAS
Return On Ad Spend — revenue earned for every dollar spent on advertising.
ROI
Return on Investment — net profit divided by the cost of the investment, expressed as a percentage.
Marketing Automation
Using software to automate repetitive marketing tasks such as emails, social posts, and lead nurturing.