What is performance marketing?

In today’s highly-competitive marketing ecosystem, advertisers want to get maximum value out of their marketing spending. Performance marketing is one way to do this, and this marketing model is quickly gaining popularity in the increasingly results-driven industry of digital advertising, including incremental CTV marketing, which works similarly to mobile app user acquisition marketing.

Performance marketing is a type of advertising where advertisers pay when a specific action is completed, such as a sale, lead, or click. It differs from traditional marketing because payment is based on results rather than upfront fees. In some cases, advertisers only pay when consumers install their app or meet other specified criteria.

How is performance marketing different from other forms of marketing?

In traditional marketing, advertisers pay upfront fees before ads are run, focusing on brand awareness. However, the impact on the client’s bottom line is often difficult to measure. Performance marketing, on the other hand, prioritizes measurable results and is favored by marketing professionals due to its focus on outcomes.

Examples of performance marketing include campaigns of in-app ads, social media channels like TikTok or LinkedIn, and search channels like sponsored search results. Each channel may have different pricing models such as cost per install (CPI), cost per engagement (CPE), or cost per tap (CPT). The field of performance marketing continues to evolve, with new trends emerging frequently.