Performance marketing is not a specific advertising format or tactic. Rather, performance marketing is a philosophy of marketing for achieving systematic product growth.
Performance marketing is essentially a well-devised strategy that employs three fundamental components:
- Hypotheses regarding the potential reception of campaigns.
- A robust methodology to quantify value driven by campaigns.
- A process to evaluate the initial hypotheses and the validity of the model utilized.
It’s essential to debunk some misconceptions associated with performance marketing:
- Performance marketing is not the opposite of brand marketing. In fact, you could (and should) use a performance marketing mindset to create and assess brand marketing campaigns. Gone are the days when advertisers just throw money at “upper funnel” campaigns and don’t attempt to measure success.
- Performance marketing is not confined to a specific subset of marketing endeavors. It is, instead, a mindset that should be adopted across most marketing initiatives.
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