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What is Performance Marketing and Its Benefits

In contrast to regular digital marketing, instead of improving vanity metrics, performance marketing focuses on improving actionable metrics such as conversions, clicks, sales, downloads etc.

The unique nature of performance marketing is that it ensures return on investment (ROI) because you only pay the agency / company once the action you requested is achieved. Therefore, you, the client are guaranteed to stay profitable and you will ultimately drive your long-term KPI's higher.

Here Are Some Examples of Performance Marketing KPI's:

  1. Conversion rate

  2. Customer acquisition

  3. Customer retention

  4. Lead generation / quality

  5. Sales

  6. Revenues

  7. Conversions

Methods of Performance Marketing:

- Social Media Advertising

- Native Advertising

- Search Engine Marketing (SEM)

- Affilate Marketing

- Sponsored Content

Benefits of Performance Marketing:

1. Higher ROI and reduced risk

With performance marketing you pay after your desired action occurs, thus the risk is minimised compared to more traditional digital marketing techniques. Furthermore, with performance marketing, your brand will always improve as sales, leads, revenue or conversions will ultimately increase.

2. Optimised for KPI's

Performance marketing focuses wholly on your KPI's and therefore you can give it all your attention. Consistently testing and adjusting your SEO, SEM strategies according to your audiences actions will enable you to optimise your results for your KPI's.

3. Improves Actionable Metrics Instead of Vanity Metrics

The digital marketing space is very competitive nowadays as more and more companies become digitally conscious and capable. Therefore, as competition increases, the cost of digital advertising, PPC (paid-search), clicks and impressions increase. However these leads may not be of high quality as these are what we call 'vanity metrics'. Conversely, performance marketing eliminates this issue as it focuses on driving quality traffic.


Therefore, performance marketing is likely the most successful current marketing channel as effective adoption of this technique will result in massive growth of conversions, consumer growth, sales, quality leads etc. Furthermore, performance marketing enables you to simultaneously increase brand awareness in a profitable manner with a good agency.

If you want to get in touch with a performance marketing specialist, visit 4HK. Or contact them at


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