As brands have started to expand their presence on the internet, it has become important to keep up with the competition that exists online. Social media campaigns are crucial to make a brand reach to its targeted audience. However, it might seem like a hassle to determine whether the marketing strategy would work or not. This is where performance marketing comes to the rescue.

Now, what is performance marketing? You wonder. Performance Marketing is a digital marketing strategy that is used by advertisers for a campaign where in the payment takes place after the successful completion of a desired action (lead, sale, booking, download) taken during the campaign. This becomes a win-win opportunity for marketing for both, the brand as well as the advertiser. Based on the performance marketing used by the advertiser, ROI can be measured in real time. This gives the benefit to know where, when and how much to pay while planning a campaign for the given brand. Because the payment is done only after the desired action takes place, the further benefits include higher brand exposure and more targeted clicks at zero cost.

Be it a startup or a big MNC, performance marketing is a good option that delivers guaranteed return. The four basic types of performance marketing payment are:

• CPM (COST PER THOUSAND VIEWS): In this type the price depends on how often is the ad displayed to a user.
• CPL (COST PER LEAD): In this type, the price depends on whenever a user provides contact information.
• CPC (COST PER CLICK): In this type, the payment is based on whenever a user clicks on the ad.
• CPA (COST PER ACTION): In this type, the price of the ad depends on the action taken. (sales)

In order to make the performance marketing effective to generate leads and increase sales, one needs to evaluate the different opportunities that can be found in the online market. And later, take the opportunity and communicate to the company as well as the target audience or consumers.