Performance marketing
Performance marketing is paid promotion where results are tracked and judged against measurable outcomes, such as enquiries, sign-ups or sales, not impressions. Channels include search ads, social ads and affiliates, and spend is adjusted according to what the data shows.
In practice
What it means when you are the one making the decision.
The defining feature is measurement. Each campaign has a goal, a cost per result and a way of connecting spend to outcomes. That requires correct tracking, a landing page that converts and a sales process that follows up leads quickly.
It works best when the offer, the creative and the destination page are tested one change at a time. Advertising spend is paid to the platforms, so an agency's fee covers strategy, setup, management and reporting, not the media itself.
Example
A clinic runs search ads for a specific treatment, tracks calls and booking forms, and moves budget towards the keywords that produce appointments.
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