Performance Marketing (PM) is an online marketing method where the merchant pays for results such as clicks reached, leads, downloads or direct sales. This model is cheaper than traditional advertisement, it is measurable and makes an effective audience segmentation. (Regarding advertisers payments, there are no fees or administrative costs in Performance Marketing. This is a method based in a variable price that depends on the performance of the ad. For example, the cost of an ad might be fixed by number of clicks on the ad, leads reached or direct sales achieved through the ad. The main payment models are:
There are two main parties in PM: advertiser and publisher (website owners). The process is simple: the merchant sells its services or products online through ads in the publisher’s websites. When a client visit the publisher’s web and clicks the ad, a banner for example, the customer is able to make a direct purchase in the merchants web. In this case, the publisher will obtain a commission on this sale. This is the CPA model, a free risk model for the advertiser. Publishers can get interesting commissions and monetize their webs, depending on the campaigns they are promoting on their websites and on the number of sales registered.
Advertisers and publishers usually work partnering with affiliate networks, connecting both parts in this market, but in this case there are some high fees as well as a long process of the strategy planification, specially for international campaigns. The best option in this case is to contact with Performance Marketing agencies, offering sometimes free register in networks, campaign design and internationalization strategy based on the merchants’ services or products.
Performance Marketing campaigns are totally measurable due to a tracking code embedded in the publisher’s website, where sales are registered in real time. These campaigns give reliable data, focused just in results. Nowadays, all sectors are present in the online market, and many companies are looking for cheaper online alternatives. Performance Marketing is itself an alternative to companies wanting to increase their online sales. This marketing model is interesting both for small and big companies, specially when referring to CPA payment, as the return on investment (ROI) is assured.
AffiliRed offers PM services specialized in the Travel Sector. The agency manages the program in multiple affiliate networks, takes care of the internationalization strategy, design of creativities, definition of action plans and brand PR activities among many other services, to drive success to advertisers.