performance marketing
Marketing in which spending and success are tied to measurable actions such as clicks, leads or sales.
Definition
Performance marketing focuses on channels and tactics where results can be tracked and attributed to specific actions. Common examples are paid search, paid social, affiliate programs and email. Budgets are adjusted according to measured return. The approach is powerful but depends on good tracking and clear definitions of success; it can neglect brand-building effects that are harder to measure. Agencies in this field may charge a fee, a share of ad spend, or a hybrid with bonuses linked to results.
In a sentence
The performance marketing team paused ads that did not produce leads.
Their fee included a bonus tied to cost per acquisition.
