Every business wants to turn a profit, which is why most of them spend a lot of money on traditional advertising and brand recognition. Many brands may have benefited from this marketing technique, but not all of them could claim the same.

Businesses are also seeking ways to increase sales and brand awareness while conserving costs due to the daily rising expense of local advertising. Therefore, it should be no surprise that performance marketing is a growing trend among companies and this marketing strategy reduces costs and guarantees that the goal is met.

As a result, if you operate a business and are unsure of what performance marketing is or how to use it, you should keep reading since this article will thoroughly explain what it comprises.

Performance Marketing Guide for B2B Success

What is Performance Marketing

In addition to email marketing, affiliate marketing, and social media advertising, this is a new but powerful internet marketing tactic. However, this method differs from the others in that affiliates, influencers, or marketing firms are only compensated when the campaign’s goals are accomplished. Each brand may have a different goal, including bookings, sales, clicks, leads, or engagements.

In performance marketing, affiliates and brands must both monitor their performance: the affiliates’ marketing strategy and the brands’ ability to reach their goals.

Additionally, the brand is confident they are getting value for their money because they only pay when the intended action is accomplished. This marketing strategy allows businesses to save cash for more crucial things and gain free brand promotion.

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How Does Performance Marketing Work?

These four groups must collaborate well if performance marketing is to be successful. They consist of the merchant (retailer), publishers (affiliates), third-party tracking platforms, and affiliated managers (outsourced program management).

1. The Retailer

This is the brand or business that requires advertisement or brand promotion through the efforts of the affiliate partners. The retailers or merchants communicate with the affiliates, outlining their goals or aims for the business, and pay the affiliates when the goals are met.

It is recommended that these merchants have an online presence in other performance marketing channels if they want to succeed in performance marketing.

2. The Affiliates

They are also referred to as influencers or publishers. These people ensure a brand accomplishes its targeted objective through its marketing initiatives. These affiliates can use their websites, blogs, social media platforms, or influence to improve the retailer’s performance.

The merchants must, however, meet the needs of the affiliates. For instance, since influencers utilize their influence to boost sales, they would only take on reputable brands. This is vital because they risk damaging their reputation by endorsing questionable companies and losing their fan base’s support.

3. Third-party Tracking Platforms

It was previously said that brands and affiliates must monitor their metrics and performance. Third-party platforms like Partnerize, Rakuten Advertising, PepperJam, etc., can be used to track and monitor leads, clicks, and sales.

These platforms also enable merchants and affiliate managers to design clever commission schemes, give bonuses, distribute newsletters, and monitor returns.

4. Affiliated Managers or OPMs

Coordinating the affiliates and the stores falls to these affiliate managers. For most brands, a team within those organizations is in charge of this, but they may also choose to hire the services of outside firms that specialize in this area.

These marketing companies have the edge over the internal staff because they are more knowledgeable. They also have an extensive network of linked partners—this further aids in obtaining outcomes more quickly.

How Do You Measure Performance Marketing?

Gaining ROI is the ultimate goal of all performance marketing strategies. Utilizing many key performance indicators (KPIs), performance marketing is evaluated. These metrics may include clicks, sales, downloads, leads, or page views.

Here are some typical KPIs and metrics to help you understand how performance marketing pricing works.

● Pay Per Sale or Cost Per Acquisition

Cost Per Acquisition (CPA) is the most common metric used in B2B. This is the amount the retailer pays the affiliate partners after completing a sale.

● Pay Per Lead

A lead is a prospective customer. Some merchants set up payments based on this metric. They need affiliates to send leads to their websites so they may take over the responsibility of turning the leads into actual consumers.

● Pay Per Click

This is the price a retailer pays an affiliate for any ad clicks they refer to the desired landing page.

● Pay Per X

X in this scenario refers to any desired action the brand requests of the affiliates. It could be per page views, bookings, downloads, etc.

● Lifetime Value

Customer Lifetime Value (CLV) This payment is made based on the estimated value of the customer to the brand. The LTV predicts a customer’s future spending based on their behavior and interactions with the brand.

Types of B2B Performance Marketing Channels

Performance Marketing is an umbrella of various marketing strategies. Most often, brands use one type to increase sales, while others prefer to use more than one type. The typical performance marketing categories are listed below.

1. Native Advertising

Although it is an advertisement, this is done so that it doesn’t look like a plain sponsored ad. Native advertisements are incorporated to match the look and feel of the website they are displayed on, such as news or social media platforms. In this manner, it appears natural to your intended audience.

2. Social Media Advertisement

Businesses using this type of performance marketing will surely see results as social media usage grows. Businesses-to-business (B2B) organizations frequently use LinkedIn, Facebook, Instagram, and Twitter platforms to increase traffic and raise awareness.

3. SEO Marketing

Marketers also employ search engine optimization in addition to performance-based marketing. This strategy uses the search engine’s algorithm to obtain organic clicks. A sponsored ad on a search engine like Google is an example of paid search marketing, which differs from what we’re talking about here.

Performance Marketing Guide for B2B Success


Benefits of Performance Marketing

● Brand Awareness

Performance marketing enables brands to reach out to a broader target audience due to the influence of affiliates and marketing agencies.

● Lower Risk

Because the affiliates are only paid when the goal is achieved, brands are sure of getting their money’s worth, thus reducing risk and generating higher ROI.

● Measurable Performance

This form of marketing allows brands and affiliates to track and monitor performance throughout the entire click-to-consume path of each buyer and identify where to invest more.

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You should consider investing in performance marketing if you own a B2B business that you believe has not yet reached its full potential. It is affordable, lower risk, and gives the desired, measurable results.

It’s a tried-and-true marketing tactic to raise brand awareness, boost traffic, boost sales, and engage prospects. Performance marketing also ensures that your efforts are optimized to ensure effective spending and free of any campaigns that are unlikely to yield outcomes.