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Performance Marketing Kit: Get to know all 2020’s Insights and Trends! Share via

Performance marketing has been storming the marketing industry and communities for the past few years, which drove the interest towards that approach in a rebellious gesture.

The approach has changed the way companies advertise and promote what they sell, and it also has changed the way we examine the measurements of the success of any marketing campaign, from nearly impossible determining the ascriptions to the ability to measure EVERYTHING from the reach to conversion rates.

In this article, we’re going to explore why performance marketing is such a hit to every marketer and business out there.

Isn’t it marketing based on performance?

In principle, performance marketing is putting power back in the hands of the advertisers, Because it’s a data-driven marketing model that aids advertisers to collect valuable insights into their performance which assists them to improve their campaigns according to the best cost (whether its Cost Per Acquisition, Sale, Lead or Click).

That said, the Business Insider’s 2016 report stated that nearly three-quarters (74%) of shoppers in the US click on more than 3 to 4 websites before continuing to explore or shop in the intended site. This statistic shaped a massive endorsement on how effective the performance model is and how a lot of huge numbers from what we see in the global ecosystem resulted from applying it.

Evolution of Performance Marketing


performance marketing digital marketing performance evaluation

But isn’t that the same as digital marketing and affiliate marketing?

Digital marketing includes all channels and efforts that affect business leverage. And according to the anatomy of digital marketing, performance marketing is a model that falls under its umbrella since 1993 when the first Web ad banner was launched. 

In spite of that, Digital and performance marketing aren’t the same on many levels.

  • When it comes to Payment

In traditional digital marketing, the procedures include CPC and CPM standards which aren’t efficient because your company will have to pay for results in advance starting from salaries to operations. 

In performance marketing, especially affiliate, it’s the opposite. It’s a free-risk model that makes you pay only when you receive the action or generate sales.

  • When it comes to fixed costs per actions

In traditional digital marketing, it’s challenging and almost impossible, to expect the fixed cost per new customer on a daily basis.

In performance marketing, the affiliate and performance marketing’s base is situated on expecting the fixed cost per new customer daily.

  • When it comes to the Hyper localized campaign.

In performance marketing that is a big advantage, as hyperlocal marketing focuses on limiting the targeting of the ads to highly specific geographical areas, further you can track keywords and set a hyper-social marketing campaign using Google Ads.

This will generate free awareness and reach which isn’t available in traditional digital marketing.

Back to affiliate marketing. When it comes to affiliate marketing, it originated before performance marketing, and despite that, performance marketing includes it and much more as a model.

Affiliate marketing in itself might not guarantee the Consumer will buy what you’re selling. But the latest technologies and digital marketing strategies allowed taking a closer step towards completing priority action. And now affiliate marketing has evolved to the extent when sometimes you pay the affiliate only for sale or download. Accordingly, performance marketing goes far beyond the affiliate model.

Performance marketing from a brand’s perspective:

One of the enormous concerns that any client we collaborate with has is, “Would this help my business’s growth and ROI?” Well, there are many benefits to adding Performance Marketing to your growth’s funnel and online marketing mix.

Of course, it’s an obvious benefit of building your brand through a third partner with their separate audiences, budgets, targeted traffic, and audience engagement, with a plus of reducing your risk, increasing your market reach, and decreasing budgets while growing your brand.

Further, Performance Marketing is trackable, measurable, and transparent. 

Brands can now see the entire click-to-consume journey of each buyer, and identify where to invest more and what channels would perform better results. Here are some tips on how to make your performance marketing application successful:

1. Pay attention to your landing pages

First, lousy landing pages can put off visitors from converting and responding to your performance marketing. Furthermore,  not including reasonable offers on your landing page is worse, it might put off partners and advertisers. They tend to experience the website’s landing pages and offer to test what the audience will go through when they advertise your products.

2. A/B Testing is your best friend

Testing, measuring, and creating a standard. Repeat. When it comes to performance marketing, specifically those are essentials. Try different techniques and follow-up with an optimization every single time.

3. Reputable sources = Consumer’s trust

Always double-check on the traffic coming from the sources you’re advertising on. If it isn’t reputable, then it’s neither what you and your consumer want. Based on that, try recording each data you get starting from locations, what devices they use, from what channel they came, bounce rates, and what to do next as an optimization. We highly encourage you to do that after advertisers to make sure you’re growing sales-wise and business-wise.

Let’s talk about the latest performance marketing trends!

Everything is moving one step forward as you’re reading this. Performance marketing is hugely becoming the primary sales driver by more than 30% in almost every e-commerce website.

This percentage placed performance marketing as a very prominent approach and specialization. With this rapid growth, people are getting attracted to the career, more advertisers are joining its space, and more clients believe in it and what’s beyond it.

The elevation in advertisers, affiliates, influencers, and companies like ArabyAds proves the opportunities present to promote brands through performance marketing models.

With the COVID-19 situation also elevating, we faced many challenges that made us enhance specific trending models based on our expertise and the global standards we’re following. And here are our top effective trending models.

Explore our: Affiliate Solution, Influencer Solution, Lead Generation Solution. Generally, performance marketing is a rising model for e-commerce, brands, and all businesses. Hence, if you have a performance marketing or affiliate marketing program, it is good to practice to appraise your strategies and program to comprehend if you can benefit from an outsourced specialized team being added to your funnel or managing the program entirely.

Last but not least, our ultimate advice is, test it. Track it. Measure it. Optimize.