Performance-based marketing, also known as performance marketing, is a type of advertising in which marketers pay for specific actions that are taken as a result of their marketing efforts. These actions, known as "conversions," can include purchases, sign-ups, downloads, or other desired outcomes.
Performance-based marketing differs from traditional forms of advertising, such as brand advertising or displays advertising, in which marketers pay for impressions or the number of times an ad is shown, regardless of whether it leads to any conversions.
Performance-based marketing is often used in online marketing, where it can be tracked and measured using tools such as cookies and conversion tracking pixels. It is also used in offline marketing, where conversions can be tracked using phone numbers, coupon codes, or other methods.
Performance-based marketing can be a cost-effective way for businesses to reach their target audience and drive specific actions, as they only pay for actual conversions rather than impressions. However, it requires careful planning and tracking to ensure that marketing efforts are effectively converting and delivering a positive return on investment.