What is performance marketing?

Performance marketing is an approach where budget is tracked to measurable actions, clicks, leads or sales, not impressions.

How do you measure success?

KPIs tracked include ROAS, CPA, conversion rate, and revenue attributed to each campaign.

How is performance marketing different from a single-channel agency?

A single-channel agency reports on its own channel in isolation. Performance marketing reports across every channel in the mix against one shared set of business outcomes, which is what makes budget reallocation between channels possible.

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Overview

Performance marketing campaigns run across search, social and display with one goal: return on the marketing spend, tracked and reported transparently rather than reported as impressions or reach alone.

What Performance Marketing Means

Performance marketing is the umbrella term for the channels covered individually elsewhere on this site: PPC, paid social, and SEO once it starts producing conversions rather than just traffic. What distinguishes a performance marketing engagement is the reporting layer sitting across all of them, attributing pipeline and revenue back to the channel and campaign that produced it.

Attribution modelling matters most once a business runs more than one paid channel at a time. Without it, budget tends to concentrate on whichever channel is easiest to measure, usually the last click before a conversion, even when an earlier touchpoint did more of the work.

Setting Targets Before Launch

Target CPA and ROAS goals are set before a campaign launches, based on the margin and lifetime value of what is being sold, not chosen arbitrarily. A target that ignores margin can hit its cost-per-acquisition number and still lose money on every sale.