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Measurability is the key to increased sales
All digital-media marketing instruments that target a directly measurable action by the user are known as Performance Marketing instruments (Source: BVDW e.V.).
If products or services are publicised using advertisements or text links, clicking on these already represents a measurable success parameter. This detailed and measurable user behaviour and the success-dependent payment for the advertising service derivable in this way are what make Performance Marketing so attractive.
Performance Marketing pursues the idea of efficiency: the focus is on selling products, not on building up a brand or brand identity by creating brand awareness or trust and appeal. In this respect the invoicing model is also exclusively success-dependent vis-à-vis the advertising medium.
Only delivered clicks (Cost per Click – CPC), prospective-customer addresses (Cost per Lead – CPL) or concluded contracts (Cost per Order – CPO) are paid for by the client. The benefit: the client retains full control over costs, and shifts the risk to the advertising medium.
