What is Performance Marketing? A CMO’s Guide to Performance Marketing

What is Performance Marketing?

What is Performance Marketing?

Performance Marketing is an investment this is no longer a “nice to have” but a need to have as part of your overall marketing mix. Performance Marketing, also known as “affiliate marketing”, is a model that pays rewards based on the completion of a particular action, driven by someone else’s resources (time and money) and has a guaranteed ROI because spend comes only after a desired action takes place, which can be controlled (both from a margin perspective and a tracking perspective).

In simpler terms, it’s like having an online and offline sales force that works on a commission base only.

Whether the goal is to complete a sale, complete a lead form to capture someone’s name, email and phone number, a click, an impression or a phone call, affiliates can work with you to bring in new leads, new sales, more consumer engagement, more targeted traffic, additional brand exposure, and ultimately higher ROI. (more…)

Performance Marketing vs Affiliate Marketing Part 2

Affiliate Marketing vs Performance Marketing
A few days ago I posted an article originally titled “Performance Marketing is NOT Affiliate Marketing“, however it caused some confusion as to my position on particular things so I changed it to Performance Marketing vs Affiliate Marketing. The main point of my post was to demonstrate that in affiliate marketing, in this case from a merchant perspective (since most of my readers are advertisers), there needs to be some actual performance and effort attributed to sales. In reality, this goes for any type of affiliate or merchant partner.

From the affiliate side, this is equivalent to signing up and promoting a program that doesn’t convert. In this case, there is no performance from the merchant side.  That was the point of that post. However, upon receiving some good constructive feedback as to how the title and exclusion of some additional points might contribute to an already confusing topic (and I’m always open to positive constructive feedback), I wanted to share a few more points and insights that might shed some light on this subject. (more…)

Performance Marketing vs. Affiliate Marketing

What is performance marketing? What is what we refer to as “Affiliate Marketing”? To me, Performance Marketing is just that: Performance. What is performance? By definition it’s the execution or accomplishment of work, acts, feats, etc. That means that just being “associated” or “affiliated” with someone does not equal true performance or true value. By signing up for every known brand then trademark bidding on brand terms to convert easy sales with coupon codes is not performance marketing. It’s “affiliated marketing”. By definition, you have to do something to earn something back. (more…)

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