What Is Performance Based Advertising?

What Is Performance Based Advertising?

» As a new advertiser, you do not understand how to invest in advertising in the right way, so you don’t want to pay for all risks at the beginning. So performance based advertising is an optimal solution for advertisers to cut down all these risks and simplify online earning. 

What is performance based advertising?

» Performance based advertising is also known as performance marketing, it is a general terminology for advertising forms which the purchaser pays only when a desired action happens. These actions can include a generated lead, a sale, a click, and more. 

Performance marketing strategies

» There are primarily four pricing models used in the online performance marketing market, and you should understand their operation and expose them to the right campaigns to get the optimal results.

  • CPM (cost per impressions) this is the cost an advertiser pays media companies for 1,000 views of an advertisement executed by users.
  • CPC (cost per click) the media company charges advertisers, whenever someone clicks on an ad.
  • CPA (cost per acquisition) when a specific action created by audiences, such as a sale, a form completion, or a click, occurs, then the advertiser pays for publishers an amount.
  • CPL (cost per lead) the advertiser pays when a lead form is completed and submitted.

How does it work? 

In performance marketing includes 3 parties participating in: 

  • Retailers and merchants: they have products and services, and want to promote them to users. So they pay for publishers to display their advertisement.
  • Affiliates and publishers: they have websites, blogs, media channels that have  available ad inventory to display advertisers’ advertisements with commission earning purpose.
  • Affiliate networks and third-party platforms: they are a middlemen platform that connects advertisers with publishers. In their platform, it provides plenty of monetization solutions for both advertisers and publishers. It includes ad formats, banner ads, reporting statistics, account managers, and payment methods.

What are the benefits of performance based advertising?

» Performance marketing is ideal for advertisers, as you spend only for the desired actions made by real audiences. In this way, advertisers can save the advertising cost, and moreover, their advertisements are ensured to deliver to target audiences. Because you will not pay if nothing happens. So you can receive a high conversion rate and more profit in your campaign.

»  On the other hand, as an advertising agency, distributor, or publisher, you have more motivation for making the best use of the available inventory of advertising space. As your income depends on the user’s actions. Besides, you can get more commission through advertisers auction if your site is top of SEO ranking. 

Content performance marketing

»  With content performance marketing, advertisers have to create the most relevant content to their desired audience, whereas these content meet demand, optimize, and measure the success of the content. The three steps involved in content performance marketing are:

  • Target demand: in this stage, advertisers need to gauge the parameters to understand audiences’ demand, it includes: 

              –  Analyze the historical performance of the website over a span of time

              – Assess the trends around the types of content your audience wants

              – Verify the seasonality of your product or service to create quality content to generate sales when the demand is high

              – Extract competitor data, so you can get a better picture of how your organic content strategy is performing against your competitors.

  • Optimize Content: the most important phase is to optimize your content, with this way it can gain audiences’ visibility. By using real-time insights and applying it to the content marketing strategy, this is one of the best ways to optimize content and drive performance of the website. A full spectrum optimization would include:

             – The trends that are in demand right now

             – What is competition doing with their content?

             – Execute the best practices of on-page optimization

  • Measure Results: it is so important to understand what content marketing metrics are, because through them, you can know how your content is working. Of course, each business asks for different metrics, but we can entirely measure most of them, it consists of bounce rates, conversion rates, engagement rates on video, page views and page-based metrics, quality inbound links, organic traffic, social shares on blog content, unique visitors.


» Although performance marketing is an efficient method to help advertisers to be able earn more easily with less risks in their business, you should prepare good knowledge to run your campaign well and have the right strategies. 

Author: TopAdNetworks


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