What is Performance Marketing?

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Performance Marketing is a strategy that comes from Digital Marketing and focuses on results . All decisions are made based on data analysis and testing , which is carried out on an ongoing basis. Most companies currently use Digital Marketing tools. However, few work with Performance Marketing.

Performance Marketing is a strategy that uses data from the performance of paid campaigns to constantly optimize and improve results. It is applied to short-term return campaigns - that is, campaigns with a quick or even immediate return. Those who work with Performance Marketing use different Digital Marketing tools and platforms to monitor the performance of each of their ads. This is the only way to know how to improve your results, since you identify the weak points of your campaigns and can quickly correct them.

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Make the most of your marketing strategy
You should focus your efforts on optimizing your strategy based on these four metrics :

Cost Per Order (CPO)
There are four ways to determine the optimization of a marketing strategy. The first is to determine the cost per order , calculating the amount invested in the strategy divided by the number of orders received for it. This allows the company to determine how much money was spent on acquiring a new customer .

Cost Per Mile (CPM)
The next method involves calculating the cost per mille within the performance marketing universe . It specifically measures campaigns around a thousand impressions of the ad. Of course, these are not impressions in the literal sense, but rather the number of times a certain communication was displayed to the public . For example, if a website charges €3 CPM, it means that it has to pay €3 for every 1000 views of its ads.

Cost Per Lead (CPL)
The third method calculates the cost per lead , which in itself on page seo service is a type of pricing model within the performance marketing methodology (read more about leads here ). This creates a balance between the responsibility between advertisers and publishers. In CPL, the advertiser pays only when the consumer interacts directly with the advertised product .




Cost Per Action (CPA)
Finally, cost per action is a performance marketing method where advertisers only pay when a potential consumer performs a certain action . We can therefore conclude that this is a low-risk technique .

We live in the era of big data , where data is crucial for decision-making and the survival of a business . The indicators that Performance Marketing provides are very valuable, as is the information it can generate. Closum is a straightforward platform for creating your digital marketing campaigns. Discover our advantages here !