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Writer's pictureVivien Koh

An Introductory Guide to Performance Marketing

Updated: Oct 12, 2022

๐ƒ๐ข๐ ๐ฒ๐จ๐ฎ ๐ค๐ง๐จ๐ฐ? ๐’๐ž๐š๐ซ๐œ๐ก ๐š๐ ๐ฌ๐ฉ๐ž๐ง๐๐ข๐ง๐  ๐ข๐ง ๐ฉ๐ž๐ซ๐Ÿ๐จ๐ซ๐ฆ๐š๐ง๐œ๐ž ๐ฆ๐š๐ซ๐ค๐ž๐ญ๐ข๐ง๐  ๐ข๐ฌ ๐ž๐ฑ๐ฉ๐ž๐œ๐ญ๐ž๐ ๐ญ๐จ ๐ซ๐ž๐š๐œ๐ก $๐Ÿ๐Ÿ—๐Ÿ ๐›๐ข๐ฅ๐ฅ๐ข๐จ๐ง ๐›๐ฒ ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ’!


We frequently use the term "digital marketing" ubiquitously, in a generalised manner. However, digital marketing actually comes in a variety of specific forms, and each form comes with its own set of channels and capabilities that are continuously growing as technology evolves.


With so many forms of digital marketing present, one that is frequently overlooked by companies is performance marketing. Yet, performance marketing has huge potential in terms of bringing a company growth and increased revenue, if executed correctly.


๐Ÿ“Œ What Exactly Is Performance Marketing?


Performance marketing refers to a performance driven digital marketing strategy. With performance marketing, advertisers will only pay based on specific actions carried out by the target audience. Some of the advertisers pay based on impressions, number of clicks, number of leads or sales that their advertisement generates. Advertisers will collaborate with agencies to design and display their advertisements for their brands across multiple performance marketing channels.


Display advertisements, sponsored content, social media advertising, affiliate marketing, and search engine advertising are all examples of channels that fall under the category of performance-based marketing.


๐Ÿ“Œ Why Your Brand Should Engage in Performance Marketing


When used to its best ability, performance marketing has enormous potential to scale your organisation as the digital marketing sector continues to expand year-on-year. Here are the top four justifications for your company to begin investing in performance marketing:


1๏ธโƒฃ Increased brand awareness โ€” You may reach new audiences and boost site traffic by working with affiliates and established agencies that already have loyal followings.


2๏ธโƒฃ Lower risk โ€” Firstly, advertisers will only pay for desired actions. There is more flexibility for advertisers to tweak their budget or stop the campaign if desired results are not met.


3๏ธโƒฃ Extended advertising reach โ€” When you engage in performance marketing, several websites will advertise your business. As a result, a wide range of websites will direct site visitors to you, whether through links or display advertisements.


4๏ธโƒฃ Trackable performance and impact โ€” Businesses can now view the entire decision-making journey taken by each customer, helping them to decide where to increase their investment and in which partners, channels, and for what purposes.


๐Ÿ“Œ The 5 Forms of Performance Marketing


Agencies and advertisers employ five different forms of performance marketing to increase traffic:


  • Banner (Display) Ads โ€” Such advertisements can be found on the borders of websites you visit. Many businesses are having success with display advertisements that make use of interactive information, videos, and interesting visual design.


  • Social Media โ€” Social media provides you the chance to connect with potential customers and direct them to your website. On top of that, users can also share your sponsored content with their networks, further expanding the reach of the post itself.


  • Native Advertising โ€” Native advertising uses a website's or page's natural appearance to incorporate sponsored content. It is effective because it enables your sponsored content to coexist next to other types of organic material. Users frequently arenโ€™t able to tell the difference between natural content and native advertisements, which enables you to market your brand in a way that seems natural.


  • Search Engine Marketing (SEM) โ€” Since search engines are used for the majority of internet research, having a website that is optimised for SEM is crucial. Many performance marketers use content marketing and landing sites that are SEO-optimised for organic SEM.


  • Content Marketing โ€” The main goal of content marketing is to educate your audience. Content marketing creates three times as many leads and costs 62% less than outbound marketing, with emphasis being placed on giving people helpful information and contextualising your brand. It includes blog articles, case studies, e-books, and other similar materials.




๐Ÿ“Œ Learn More About Performance Marketing Today!


Get started now!


VKT is a data-driven strategic consulting & digital marketing agency. We are obsessed about performance and helping businesses turn ineffective digital marketing campaigns into visible, measurable results, in the form of lead generation and revenue growth. In the past month, we have achieved 120% revenue growth for our client, leveraging on customer insights and data analytics to formulate and optimise our performance marketing strategy.


With our experienced MRA & EDG Certified Consultant, VKT boasts a proven track record in achieving a high EDG application success rate that grants your business up to 70% funding for SMEs and 50% for non-SMEs. So contact us now for a strategy session with our Digital Marketing Consultant to discover more about how you may start your performance marketing journey and leverage our expertise!



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