The term Performance Marketing describes the use of online marketing tools with the intention of achieving a measurable result or a transaction of the user. The term is made up of the two designations Performance and Marketing.
Performance is directly related to the method of rewarding this marketing. The remuneration takes place exclusively on a performance basis and is based on success-based marketing models. These include pay-per-click, pay-per-sale and pay-per-lead. These models are particularly limited by billing methods based on a reach. In particular, these methods compete with the commonly used TCP (thousand contact price).
From a marketing perspective, performance marketing is unambiguously attributable to direct marketing. It belongs to the group of below-the-line communication and needs to be treated accordingly. In principle, performance marketing represents an equivalent modification of direct marketing related to interactive media. Furthermore, it is an integral part of the Mediamix and should be used by companies with the goal of customer acquisition and customer loyalty.