Partner Marketing 101: What Is Performance Marketing?

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You’ve heard us say it before: all marketing should be measured based on performance. It’s the only way to truly know how effective campaigns are, which partners are best, and how to make the best use of marketing dollars. As marketing partnerships continue to grow in popularity, we wanted to give a quick refresher as to what exactly performance marketing is, what it looks like in the real world, and what’s most important to measure if you’re just starting out.

What Is Performance Marketing?

Performance marketing is a broad term for any marketing strategy in which an advertiser pays only for measurable results. In performance marketing, advertisers pay after a specific action is completed (such as a click, sale, or sign up), instead of in advance for no guarantee of success. This is why it’s also referred to as performance-based advertising: you only pay when your ad “performs.” For a more in-depth explanation and examples, see our Intro to Performance Marketing article on TUNE Help.

Now, if you’re advertiser, you may be wondering, Why isn’t all marketing performance marketing? It seems like a win-win for everyone involved! Good question.

In the past, a large chunk of marketing was speculative. Far too often, major brand campaigns were plastered across billboards or televisions with a general idea of how many people would see the ads, but without any exact details as to how many impressions, leads, or clicks the advertising actually led to. That was the

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