performance marketing

Intermediate 📣 Marketing / Advertising

Definition

Advertising where you only pay when a specific action occurs—clicks, leads, sales—rather than just hoping brand awareness somehow translates to revenue. It's marketing for people who believe in accountability, or at least pretend to.

Example Usage

We shifted to performance marketing because the CEO was tired of funding brand campaigns that generated zero measurable results.

Origin

Formalized with affiliate marketing in the late 1990s, expanded with digital advertising platforms

Fun Fact

Performance marketing was supposed to make traditional brand advertising obsolete, but turns out you need both—brand builds the foundation that makes performance actually perform.

Source: Digital advertising and affiliate marketing industry publications

Related Terms

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