Performance advertising, also known as pay-for-performance advertising, is a form of advertising in which the purchaser pays only when there are measurable results. It is a strategy designed to achieve specific and measurable financial results within a short amount of time. Performance advertising is different from brand-based advertising, which focuses on building relationships between brands and their customers through building a recognizable brand image. Large brands, such as Coca-Cola or McDonald’s, usually apply brand-based advertising, while performance advertising is more appropriate for advertisers looking to deploy acquisition campaigns by re-marketing to end consumers through e-newsletters, community sites, reward programs, loyalty programs, and other engagement vehicles.
Performance advertising is becoming more common with the spread of electronic media, notably the Internet, where it is possible to measure user actions resulting from advertisements. There are four common pricing models used in the online performance advertising market: cost per click (CPC), cost per lead (CPL), cost per acquisition (CPA), and cost per impression (CPM) . Various types of measurable action may be used in charging for performance-based advertising, including clicks, impressions, shares, or sales.
Performance marketing and advertising solutions can help promote new products and drive sales. Performance marketing and advertising can help you engage shoppers along their paths to purchase and drive overall sales of your products. Amazon Ads offers a variety of performance marketing and advertising solutions featuring placements and ad creatives that help you efficiently reach the most relevant shoppers, both on and off Amazon.
In summary, performance advertising is a type of advertising where the purchaser pays only when there are measurable results. It is different from brand-based advertising and is becoming more common with the spread of electronic media. There are different pricing models used in the online performance advertising market, and various types of measurable action may be used in charging for performance-based advertising. Performance marketing and advertising solutions can help promote new products and drive sales.
