Performance & Affiliate marketing

One of the most popular ways to market your product is performance-based marketing. It’s an interactive way of advertise your brand or product with a different payment model than just regular marketing. All of it depends on the performance of the ad.

How often is an ad viewed?
How often is the ad clicked on?
How often does the ad convert?

One big part of performance-based marketing is Affiliate marketing. When talking about affiliate marketing it’s normally a marketing agency (or single marketeer) promoting a product or service.

However, in this case, it’s not the brand itself paying for the exposure. They only pay for an agreed price when there’s an actual conversion.

E Commerce example

To use an example. The site focusing on art for kitchen walls . When the website launched their vegetable themed posters, they decided to offer a CPA for each marketer promoting their posters.

If the sale was through website A, or a promoted ad, the site or the media buyer got a fixed fee kickback. If there’s no sale or acquisition, the marketer won’t get paid. That’s the harsh reality of performance- or affiliate marketing.

Performance marketing gambling

One of the more popular verticals to promote with affiliate marketing is the gambling or betting vertical. Normally the gambling company offers something called a CPA (Cost Per Acquisition). The CPA amount is paid out once a customer signs up and deposits money to their account. A similar way for payment setups is CPL (Cost Per Lead). This is normally significantly lower, but is triggered once a customer signs up.

Whether it’s regarding kitchen posters, gambling campaigns or software downloads. Affiliate marketing is a great way for both marketing agencies, and brands to get the message of a product or service across.

Rick Lindahl is the owner of https://www.adflips.com, an online Advertising and Marketing Industry News Portal. Rick has been involved in several major global advertising companies. Working with both publishers and advertiser and therefore has gained a lot of experience in both fields, which he now gives his view of on the site.

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