Why Performance Marketing Will Conquer the Advertising Industry

What is performance marketing?

Performance marketing or sometimes known as online marketing is method of advertising in which marketing companies and retailers are paid when a particular task is completed. The task could be making a sale, generating lead or attracting clicks. This advertising method has a flexible price which depends solely on the extent to which the ad produces the expected results as it relates to customers. A further illustration can be made on the cost of an ad is based on how often it is clicked, how often it is viewed on a web page, how often it generates a lead and how often it produces sales activities. Performance marketing combines both innovation and advertising that assists advertisers and marketing companies to grow their businesses with campaigns which are highly focused on each retailer or affiliates being successful.

Why performance marketing will conquer the advertising industry

Compared to other types or forms of ancient advertising where fees are paid upfront by not depending solely on the success of the ads, retailers or advertisers in performance marketing only pay for successful transactions. The following are said to be known benefits of performance marketing.


  • Progress are trackable

In online or performance marketing, the progress of all the activities can be measured and tracked. With this, Marketers and advertisers can ascertain the status of every transaction and pay for only those transactions that are successful. The emergence of performance or online marketing makes it easy for every marketer to trace and track the level of sales a particular online advertising campaign is bringing and the number of persons that have clicked on the advert. With this, marketers can restrategize and come up with more creative concepts if a particular advertising campaign is not producing the expected result. Also if the expected result is being produced, they will measure the extent to which the online advertising campaign can be sustained in the long run. This has made performance or online marketing the best choice for business organization, this is because it is cost effective and produces result.

  • Advertising reach is unlimited

The advertising reach of performance or online marketing is unlimited. Unlike the traditional media, performance marketing advertising activities can reach a wide range of audience in different geographical location all over the world. With internet, the world has become fully digital and if internet tools are fully utilized for advertising, the reach is unlimited and the results are impressive. It is important for companies that use performance or online marketing to always target their products or services to a particular segment of the population and carry out massive advertising campaign for their products in order to expose them to the target market segment.

  • Cost per install (CPI) being assistive.

The way business and advertising activities are being carried out in the present day society is changing rapidly. This is why experts in the business field are of the opinion that there is a paradigm change in the business world. This change has brought about new trend in the advertising industry. One of such trends cost per install (CPI). It is the monetary value payed to an advertising network by a marketer after a consumer downloads and subsequently installs a specific app. It is paramount to note that some retailers or advertisers use the term cost per download (CPD) to denote CPI, although it is not synonymous. CPD means the number of apps installed and downloaded while CPI means number of apps only installed. The concept of cost per install as a benefit of performance marketing is largely focused on advertisement of applications through social media ads campaigns and online markets. Advertisers only pay after each app is being installed. CPI adopts the principles of performance marketing.

  • It helps expand your revenue.

In performance marketing, revenue can richly be generated through the means of mobile marketing as ads produced through online marketing are mostly viewed on mobile phones through websites and social media campaigns. Thereby increasing revenue stream through cost per install(CPI) as related to customer’s interest.   

  • Mobile marketing.

In recent times performance marketing have expanded to mobile marketing which encompasses all the activities which create connection between the advertisers and customers through mobile devices and networks. These mobile devices can include phones, media devices, portable gaming consoles and tablets computers. Although few mobile devices will be open to advertising channels. Both performance marketing and mobile marketing works in the same context as interest is gained by each advert viewed. It supports companies that adopts performance marketing by increasing revenue stream. Mobile marketing is said to be more profitable in advertising as consumers use more of their mobile devices.

  • Marketing companies add improvement and creativity to your marketing.

Most marketing organizations and advertising agencies are becoming more creative and innovative on daily basis. They constantly come up with creative approach to market organization product massively. This is because of the fact that the more sales these companies make the more commission these Marketers and advertisers get. In view of this, they will always come up with new methods, technique and approach of placing online ad in order to achieve the expected results. Marketing companies or Affiliates are quick to jump on new trends such as using social media campaigns. They are also often quicker and can introduce a new campaign in a matter of a day or two, but it might take company weeks to organize an effort.

  • Mobile user acquisition

This term mobile user acquisition can simply be known as a means to persuade consumers to be interested in your apps. Performance marketing was previously defined as advertisement paid not on a basis of a set price but on performance of sale, while this focuses more on the performance of the sale of mobile apps. Known companies that benefit from mobile user acquisition are Facebook, Google, NativeX, and AdColony. Cost per install (CPI) as a model and benefit of performance marketing plays a major role as it relates to mobile devices.

  • Real- time results

When it comes to performance marketing, results are almost immediate. It doesn’t take time before the from performance marketing will be seen. Applying paid marketing campaign based on search will enable organizations to get immediate feedback that will enable them to recreate or their advertising message.  Most times when organizations discover that their advertising strategy is not getting the desired result, they always use other alternatives like real time Google monitoring tools to determine the areas of weaknesses that can be improved.

  • Attractive User Interface

The user’s interface of performance marketing is usually very attractive and encourages readers of the advertising message to take action immediately. This will make people reading the ad to be curious to perform the next action which will take them directly to your website and end up buying your product or services.