A Beginner’s Guide to Performance Marketing: Everything You Need to Know

The marketing has always been important for a business; it helps you sell your products and built a strong relationship with your audience. With rapidly changing technology, the ways of marketing have evolved and social media has become the best platform to engage customers online. This is called digital marketing and in simple words, digital marketing is “hitting the right people on the right device at the right time.” So if you are not using this golden opportunity to grow your business online then you’re legging something really important in real-time.

For those of you who are planning to pursue a career in digital marketing or advertiser planning to adopt new marketing methods should know everything about performance marketing or paid advertising to kick start your career successfully.

What is Performance Marketing?

According to Performance Marketing Association “The Performance Marketing is an online marketing and advertising program in which advertisers and marketing companies are paid when a specific action is completed; such as a sale, lead or click.” So it’s a win-win situation for both advertisers and digital marketers as the performance campaigns allow you to measure everything from the budget to the return on investment and vice versa. The advertisers don’t have to pay for bad referrals, and it also encourages the affiliate or performance marketers to send good referrals to earn well.

Unlike traditional marketing, advertisers can optimize their campaigns according to the best cost per acquisition. This method of advertising has decreased cost per acquisition and has increased ROI for a lot of small and established businesses.


What are the Benefits of Performance Marketing?

The most crucial benefit of performance marketing is that the advertisers can determine the action, and then pay when that action has been completed. Some of the major benefits include:

  • Performance is easily trackable
  • There is low risk for advertisers as the campaign can be optimized anytime.
  • Such campaigns are ROI-focused and drive great results
  • The advertisers only have to pay for successful transactions

Digital Marketing Goals:

Before starting any campaign it is important to be clear about your campaign goals. The most popular digital marketing goals are:

Website Traffic

Repeat Visits


Lead Generation


Performance marketing means paying for results and advertisers make their requirements clear before the beginning of the deal. Great results come when you run the right campaign for the right audience.

How facebook charges for paid campaigns?

Performance marketing is the focus of the conversation you must need to have in order to earn great profit.  Facebook has established few media buying models to track results i.e. CPC (cost-per-click), CPM (cost-per-mille), CPA (cost-per-action), CPL (cost-per-like). You can also track user actions by cookies, universal pixels or conversion pixels.

What are CPC, CPM, CPL, CPI, and CPS & CPA Media buying models?

Once you have set up your Facebook campaign budget, you need to choose between two-four pricing options. CPA is only available if you choose “Website Conversions” as your “Ad result” in the Ad creator on Facebook.com. CPL is only available if you choose “Page Likes” as your “Ad result”.

CPC (cost-per-click): If you use cost-per-click pricing, you only pay when someone clicks on your Facebook Ad.

CPM (cost-per-mille): CPM stands for cost per thousand impressions; you pay an allocated budget when Facebook shows your ad 1000 times. (Impressions mean the number of times your ad is shown to a user/target audience on Facebook).

CPA or CPS (cost-per-action/ cost-per-sale): This allows you to track and optimize how much you spend to get someone to take an action (or convert) on your website after clicking your ad.

CPL (cost-per-like): This allows you to track and optimize how much you spend to get someone to “Like” your Facebook Page after clicking your ad. Learn more about how to increase Facebook likes using Facebook Ads.

CPL (cost-per-lead): meaning that the advertiser pays when a lead form is completed and submitted.


Choosing a Target Audience for your Ads:

Your Target Audience is the group of Facebook users who will potentially see your ad as per their recent searches, upcoming events and interests and your specific add will only display on their timeline. It is important to know that Facebook has a very deep knowledge of users’ demographics, employment and interest information to target people efficiently.



Here we will end our beginner’s guide to performance marketing, we hope you have liked our blog and have gathered good information about performance marketing. If you wanted to know about September 2019 Algorithm update then do give it a read. We will also share more blogs on how to run paid advertising on facebook and google AdWords. Stay tuned!



Sabiha Taj
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