Are you curious about performance marketing but don’t know where to start? This beginner’s guide will teach you everything you need to know, from understanding what performance marketing is, to learn the basics and how it works. 

Statista’s latest report shows that the performance marketing sector is expected to be worth a whopping $646 billion by 2024. So what does that mean for your business? If you’re not already using performance marketing, now is the time to start!

Everything You Should Know about Performance Marketing

Performance marketing is a type of marketing designed to generate measurable results, such as leads, sales, or other conversions. This strategy can be used to achieve a variety of business goals but is most commonly used to drive growth.

Whether you’re a startup looking to acquire new customers or a large company aiming to increase sales, performance marketing is a good route to take as it greatly helps in reaching your target audience and getting them to take action.

What Purpose Does Performance Marketing Serve?

If you’re not familiar with performance marketing, it’s important to understand how it works. 

Performance marketing is a data-driven results-based marketing approach, meaning everything is paid based on the results generated. Results can be in the form of views, clicks, leads, sales, or other conversions.

Performance marketing is a powerful and holistic approach to online marketing that focuses on delivering results. Marketers also use this technique to track and measure the effects of their marketing campaigns, in terms of both cost and results.

So, how is performance marketing measured? 

It starts with an important step: selecting metrics or key performance indicators (KPIs) – for example, return on investment (ROI) or cost per lead (CPL) Then, marketers measure and report every action completed against the pre-decided KPIs. 

Since performance marketing follows a data-driven marketing approach, making it a part of your overall digital marketing strategy. It not only ensures you pay for the results you get but also lets you make data-backed decisions. 

Ways to Integrate Performance Marketing in Online Channels

Performance-based marketing can be used in any online channel, including search engine marketing (SEM), email marketing, and social media.

Here are a few different ways to integrate performance marketing into your online channels:

1. Use Performance-Based Ads

One way to integrate performance marketing into your online platforms is to use performance-based ads. Performance-based ads are advertisements shown to users who are most likely to convert, such as people who have previously visited your website or engaged with your brand on social media or other online channels like email and search engine 

2. Use Analytics and Insights

Another way to integrate performance marketing into your online channels is to use Google Analytics and Social Media insights. Social media insights are data that Facebook, Instagram, and other social media platforms collect about their users. This data can include information about users’ interests, demographics, and even their purchasing habits. 

Through the use of Google Analytics, one can easily take a data-driven marketing approach by installing a tracking code on the site and monitoring user behavior including drop-off rates, bounce rates, and retention rates

3. Use UTM Parameters

You can also use UTM parameters to integrate performance marketing into your social media platforms. UTM parameters are codes you add to your links, which help track clicks or traffic coming from your social media post.

Here is an example: 

Performance marketing is a great way to measure and improve your social media campaigns. By using performance-based ads, social media insights, and UTM parameters, you can fine-tune your campaigns to get the most out of your social media platforms. 

How Does Performance Marketing Work?

Performance marketing is an ecosystem that consists of various players: retailers or merchants, affiliates or publishers (including those who work via independent networks), and third-party tracking platforms. 

Each group is essential for understanding how the different parts work together and can provide insight into what really resonates with potential customers.

1. Affiliates or Publishers

The affiliate is the “middle man” between an online retailer and its marketing affiliates. They manage all business relationships and are responsible for driving sales traffic from other websites or individuals that earn commission on products sold by either party involved. 

Aside from increasing sales, affiliates also play a crucial role in growing your network, monitoring sales from affiliate sites, and helping out with questions or concerns when needed. 

2. Third-party tracking platforms

Third-party tracking platforms provide a one-stop shop for information and tools, such as banners and text links, which can be used to track the performance of your ads. 

As the name suggests, third-party tracking means that an external partner directly checks your traffic and engagement. The process keeps tabs on what pages of your site have been viewed and how long these visits took place as well. 

Things like measuring customer satisfaction levels with products/services also help you understand where changes need to happen. 

Performance marketing is about knowing your customer. You can’t do that if you’re not tracking your customers’ behavior on the platforms, so make sure to set up a ‘third-party’ tracking platform before launching anything. 

Why is performance marketing becoming more popular?

Today, people are looking for products and services they can’t find anywhere else. This is why performance marketing has huge potential to scale your business when you embrace its full functionality. 

Performance marketing gives brands access to audiences that traditional advertising can’t reach without inflated prices or uncomfortable interruptions like ads popping up on social media sites.

Here are two benefits of performance marketing:

Campaign Transparency

Performance campaigns give businesses an opportunity for transparency by providing real-time data regarding campaign effectiveness. 

Brand awareness

By partnering with affiliates and agencies, you can tap into new audiences that are interested in your brand. It also helps increase traffic to the website from these partners’ sites which means higher conversion rates as well. 

What are the types of performance marketing? 

Performance marketing is an umbrella term used to describe many different types of marketing. 

One company might decide they want the best return on their investment (ROI) by focusing on only one area while others may use multiple aspects in order to reach specific business goals. 

1. Social media marketing

Social media marketing has become one of the most popular forms in recent years. It’s an excellent way for companies to reach their target markets and interact with prospects and customers online.

A lot has changed since social networking first took off–brands now have access not only through Facebook profiles but also to Instagram accounts where they post everything from their travel destinations to personal preferences. 

This means that there’s no shortage when trying out new strategies on what type of negotiable message might resonate best across different platforms. Personalized content will always win over traditional ads any day because consumers want connection rather than typical transactional relationships.

2. Affiliate marketing

Affiliate marketing is an innovative way to drive customers and increase revenue. By rewarding one or more affiliates based on the number of visitors they bring in, you can nurture relationships for increased sales and growth. 

In simple terms, affiliate marketing refers to the practice of sharing products and services on your website or social media channels in exchange for an honest review. When someone uses this link with their purchase, it will trigger commission payments. 

What’s not to love? With the potential of making money off your favorite products and services, there are plenty of reasons why you should consider doing affiliate marketing: 

a) Low cost and effective 

The risk and expense of starting a business are substantial, but with affiliate marketing, all you need to do is rent or buy an internet domain name for your website. 

b) High scalability

Affiliate marketers have the opportunity to work with many different companies and promote their products. This means you can choose which commissions will be most beneficial for you. 

3. Sponsored content

Sponsored content is a type of promotional media paid for by an advertiser, but created and shared with the help of another brand or influencer. This kind can be most engaging when you sponsor companies that target your core audience.

In recent years, there has been much focus on sponsored posts as opposed to traditional advertising because it takes less time, and sometimes just one picture will suffice.

4. Search Engine Optimization (SEO)

SEO is the process of improving your website’s ranking on search engine results pages. The influence of organic search versus paid-for results is debatable, but one thing that isn’t up for debate: is the importance of SEO in today’s digital marketing landscape. 

Maintaining your site rankings through good content and external links will provide you with more opportunities than ever before when it comes time to market via websites, social media, or email campaigns. 

5. Search Engine Marketing (SEM)

Search engine marketing is a digital advertising strategy that helps websites rank higher in search results. The industry term once referred to both organic SEO and paid, but now it’s almost exclusively used for advertisers who use Google Adwords or Bing Ads among other platforms.

What are some useful performance marketing tips?

Now that you have the basics down, it’s time to up your game with these performance marketing tips. 

1. Create a winning landing page

The more enticing a landing page, the higher chance you’ll have of attracting your desired audience. 

Your goal should always be to generate leads. By designing an informative and engaging webpage, users get what they need without hassle or confusion facilitating a quick decision-making process. 

2. Monitor your marketing efforts for optimal performance

Marketing analytics allow you to track the effectiveness of your marketing campaigns and strategies. Monitor data in the customer journey throughout each stage. For example, it can include website traffic or Facebook page likes. 

The ability for this information is what makes it so powerful because insight into where things are working best helps with future planning – while also giving feedback that will help improve current efforts if needed.

3. Stay compliant with regulations

To be successful, you need to establish relationships. This means following their rules and guidelines for performance marketing campaigns so that both parties (affiliates and brands)  are on board. 

Make sure your business is compliant with communications and multimedia regulations.  Take an in-depth look at each of the guidelines or work it out through professional affiliate management companies like 2Stallions.

FAQs About Performance Marketing


1. What is the difference between performance marketing and digital marketing?

Digital marketing refers to any form of marketing, which takes place online. In other words, it’s everything from social media and email campaigns all the way down your advertising. 

Performance marketing programs are an innovative way to connect with customers. They offer affiliates and marketers the opportunity for real-time tracking of desired actions, such as lead generation or sales conversions 

2. Can I do performance marketing myself, or should I hire an agency?

You can do performance marketing yourself. As long as you have the time, money, and a team to do so. However, getting professional help is still the top solution. Luckily there are agencies like 2Stallions who can take care of your needs.

3. What is the difference between inbound marketing and performance marketing? 

Inbound marketing is like a conversation. You don’t interrupt your audience with content they’re not looking for, but instead, form connections and solve problems that are already on their minds. 

“Inbound Marketing Methodology” attracts customers by creating valuable experiences tailored around what’s needed.

Whereas performance marketing puts the advertiser back in control, allowing them to determine the action they want to be taken and then pay only when that action is completed.


Whatever your business needs are, there is a digital marketing strategy for you. As the world becomes more digitized and interactive every day, it’s important to stay on top of your game – and performance marketing can help you do just that! 

Through this marketing approach, you can access huge audiences at low costs, engage current customers, and attract new ones who may have been otherwise overlooked by traditional methods.

You don’t want to make a mistake when it comes down to branding and marketing. If you think your company needs some help with this, give us a call or shoot an email!

2Stallions is more than happy to offer expertise in performance marketing so that everything runs smoothly from start until finish. 


🚀 Transform Your Online Presence With Our Skilled Digital Marketing Service, Powered by a Data-Driven Approach That Delivers Measurable Results. Elevate your brand’s visibility and connect with your audience on a whole new level.

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