The Benefits of Performance Marketing for Small Businesses

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The Benefits of Performance Marketing for Small Businesses

Trends | Feb 16, 2021

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There are multiple types of marketing strategies available for business owners. Whether it be advertising through digital or print media, or designing a complete social media account revamp, the possibilities to brand a business better are relatively endless.

One type of marketing strategy that is beneficial for many brands, especially those who use e-commerce solely or partially — is performance marketing.

Performance marketing, also known as performance advertising, is a strategy that businesses use when they only want to pay for the marketing that actually gets them results.

Image of performance marketing meeting

The type of marketing associated with performance marketing varies from medium to medium.

Some of the most common mediums include:


This medium is very popular with newer e-commerce businesses that want to drive traffic to their brand’s website. This strategy charges the advertiser any time a user decides to click on the advertisement.


Similarly, this method also charges the advertiser when a lead is collected. Sometimes a third-party website or app will collect the lead initially and transfer it to the advertiser.


Cost-per-sale is a common method typically used in affiliate marketing. This refers to the result of the actual sale.

Cost-per-impression, or CPM

By using this approach, an advertiser pays an already fixed price for every 1,000 impressions their ad gets. In simple terms, this means that the ad will be displayed 1,000 times.

Image of dollar bill

The “M” refers to 1,000 in Roman numerals.


Cost-per-acquisition may fall into similar categories with cost-per-lead and cost-per-sale, but there are some distinct features to it as well. As an example, a user that fills out a questionnaire on your website would be put in the cost-per-acquisition category.


Where performance marketing ads are placed matters.

To gain more clicks and traffic, it’s important to advertise on multiple media channels to get a good performance marketing mix.

Some common media channels include:

Search-engine marketing

Simply put, this method, also known as SEM, involves advertising on search engines and ad networks, like Google Display Network.

Image of Google search engine

Due to SEO’s growth, SEM has evolved from just search engine optimization and advertising.

Social media advertising

Social media advertising and social media marketing differ since the marketing option includes a broader variety of strategies. Just like the name suggests, this method includes utilizing social media platforms to connect with target audiences and gain more potential leads.

Digital display advertising

This system falls into both the search-engine marketing and social media advertising domains. Digital display advertising are digital and sometimes interactive ads that will appear on search engines’ ad networks and social media platforms.

Affiliate marketing

Affiliate marketing is the process of brands paying a third-party, called an affiliate, to promote their services and products. These ads can appear on the affiliate’s website, their social media accounts, through videos and much more.

Video advertising

The concept of streaming content has expanded drastically within the last decade. Many advertisers decide to promote their businesses through video ads that play before or during a video that is being streamed. Think YouTube, Hulu or CBS All Access.

Programmatic audio

A very popular form of audio content nowadays is the all encompassing podcast. Podcasters rely on ads to help fund their show, and advertisers can find that promoting their brand on a podcast can bring in profitable results.

Image of a podacst being filmed

While there are multiple channels to choose from, the most simplest way to start is to begin with the channel you have the most experience with already.

Interested in developing a performance marketing strategy? Our experts can develop one for your brand. Contact us now!

Advertising Service. Online marketing campaigns

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