The principle of performance marketing is very simple. In the field of marketing performance, you only pay - in the form of ad clicks, lead gen, conversions, you name it with the start of Pay Per Click campaigns around since the mid 90 performance marketing is stated.
Importance of performance marketing in e-commerce: -
On traditional forms of advertising, the advertiser pays a fee upfront for ad space independent of performance. Maybe it takes hundreds to thousands of dollars spent without ever seeing a conversion. On the other hand, in performance marketing, advertisers only pay for successful transactions.
Benefits of performance marketing: -
✔️ You always know what are you paying for.
✔️ It is very easy to track, measure, and attribute value.
✔️ You may expand your advertising reach. (etc.)