15 Different Performance Marketing Channels and Benefits

HomeDigital MarketingPerformance Marketing15 Different Performance Marketing Channels and Benefits



Are you tired of traditional marketing methods that drain your marketing budget and leave little in the way? Performance marketing channels are cost-effective, highly targeted, channels of marketing that will help you grow your business.

Performance marketing is all about focusing on actions that will drive business outcomes such as sign-ups, clicks, and purchases. Businesses can create personalised messages that resonate with their target market by using data-driven insights. The best part? These actions are only billed when they happen.

We use the term digital marketing or performance marketing in a broad sense. But in reality, there are many channels of performance marketing of which you must be aware.

Moreover, the channels and capabilities of each type are growing day by day.

As there are various channels of performance marketing in this blog, we are going to discuss all the channels in detail.

What is performance marketing?

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Performance marketing is a digital strategy that targets specific behaviours or actions from a targeted audience with the aim of driving measurable results. These actions could include filling out forms, making purchases, signing up for a newsletter, or any other outcome that can be measured and tracked.

Performance marketing is targeted and data-driven, unlike traditional marketing strategies that focus on awareness building and broad messaging. Performance marketing uses multiple digital channels, such as search engines and social media, to reach potential customers at just the right place and time with the right message.

Performance marketing allows businesses to optimise their marketing campaigns using actual performance data. This is one of its key benefits. Marketers can track and analyse key metrics like conversion rates, click-through rates, and cost per acquisition to make informed decisions about the best channels, messages, and tactics for achieving their desired results.

Performance marketing also has the advantage of delivering measurable ROI. Performance marketing campaigns focus on specific actions and behaviours. This makes it easier to calculate the revenue and cost associated with each conversion. This allows businesses to accurately evaluate the return on marketing investment and adjust their strategies accordingly.

Performance marketing can be summarised as a highly effective, measurable digital marketing strategy that helps businesses to drive specific actions and behaviours among their target audience. Businesses can optimise their campaigns by leveraging data analytics and analytics to improve results and increase ROI.

Different channels of performance marketing

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As there are multiple channels of performance marketing, you have to choose which channel will be the best for your business, and it depends on your customer base. There are a total of five types of channels mainly that advertisers used to drive traffic.

1. Search Engine Marketing (SEM):

SEM allows businesses to place bids on keywords that are relevant to their products and services. To target people searching for these terms, a business selling yoga equipment could bid on keywords like “yoga mats”, “yoga accessories,” and “fitness equipment”. Businesses can improve their conversion rates from SEM campaigns by optimising their landing pages and ad copy.

2. Social media advertising:

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Businesses can target specific audiences through social media advertising platforms such as Facebook, Instagram, or Twitter. A business selling skincare products might target people who are interested in beauty, wellness, or natural products. Businesses can increase traffic and conversions via social media by creating targeted ads that are visually appealing and have compelling copy.

3. Display advertising:

Display advertising is the placement of ads on third-party websites and within mobile apps. A business selling pet supplies might place ads on apps and websites related to animal welfare, pet care, and outdoor activities. Businesses can target users most likely to be interested in their products using advanced targeting options like behaviour-based targeting or retargeting.

4. Affiliate Marketing:

Affiliate marketing is a form of performance marketing in which businesses pay commissions to their affiliates for generating sales leads or sales. A business selling online courses might partner with YouTubers, bloggers, and other influencers in order to promote its courses. Businesses can offer a commission for every successful conversion to encourage affiliates to promote their products and increase their reach.

5. Influencer marketing:

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Influencer marketing is the practice of partnering with social media influencers in order to promote a company’s products and services. A business selling accessories for fashion could partner with Instagram influencers that have a large following. Businesses can use influencers’ influence to increase conversions and brand awareness by offering them free products or commission-based compensation.

6. Email Marketing:

Email marketing is the process of sending targeted emails to subscribers who opt-in to receive communications from a business. A business selling home decor might send personalised emails to its subscribers based on past purchases, their interests, and previous behaviour on the site. Businesses can increase trust in their subscribers and drive conversions by providing valuable content and offers.

7. Retargeting:

Retargeting refers to advertising that targets people who have already interacted with an app or website. A furniture business could display ads to customers who have visited its website, but not yet purchased. Retargeting ads can be used to entice users back to their websites to complete their purchases.

8. Video advertising:

Video advertising is the creation and distribution of video content to promote a business’s products and services. A series of videos could be created by a company selling kitchen appliances to show their products in action and provide tips and recipes. Businesses can target users interested in cooking or food with video ads. This will increase engagement and conversion.

9. Native Advertising

Native advertising is when ads are placed in such a manner that it blends with the content on a website or an app. A business selling outdoor gear might place ads on apps and websites that relate to hiking, camping, and adventure travel. Native ads can drive more conversions and user engagement by using visually appealing images, and copy that seamlessly integrates with the surrounding content.

10. Mobile Advertising:

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Mobile advertising is the creation and distribution of ads optimised for mobile devices. A business selling apparel for fitness could place ads on popular apps and mobile websites that are related to health or wellness. Mobile-specific targeting options, such as device targeting and location-based targeting, can be used to target mobile users.

11. Voice Search Advertising

Voice Search Advertising: Businesses can now create voice search ads that are optimised for voice searches as more people use voice-activated devices such as Amazon Alexa and Google Home. Voice search advertising targets users who use voice commands to find products and services. For example, “Hey Alexa! Order me some pizza!”

12. Referral Marketing:

This is where existing customers are incentivised to refer customers to a business. Referral marketing can take many forms, including offering rewards or discounts to both the referrer as well as the new customer. Referral marketing is a great way to build loyalty and drive new business.

13. SMS Marketing:  

SMS marketing involves text messaging subscribers who have signed up to receive SMS messages from a company. SMS marketing is highly targeted and personal and can be used for customer support, promotion of products, special offers, and product or service promotions.

14. Programmatic Advertising:

Programmatic advertising is a channel of performance marketing that uses automated systems and algorithms to purchase and sell ad inventory in real-time. Programmatic advertising allows businesses to reach specific audiences with highly targeted messages while optimising their ad spending for maximum efficiency.

15. In-game advertising

This is where ads are placed within video games. These include banner ads, product placements and sponsored events. It is a great way to reach avid gamers younger than you.

Benefits of performance marketing

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If you are new to the business or are a small business owner, then performance marketing is the best option for you. In the above section of the blog, we have listed the channels of performance marketing, and in this section, we are going to discuss the benefits of performance marketing so that you will have a broad idea about it.

1. Cost-effective:

Businesses can pay only for the outcome they want, such as lead generation or purchase. It is highly cost-effective as businesses do not have to spend money advertising that does not result in conversions.

2. Targeted:

Performance marketing campaigns can be highly targeted to allow businesses to reach the right audience at the right moment with the right message. Businesses can maximise their marketing budget by targeting the most relevant customers.

3. Measurable:

Performance marketing has the advantage of being highly quantifiable. Companies can track and analyse key metrics like conversion rates, click-through rates, and cost per acquisition to help them optimise their campaigns for maximum return on investment.

4. Flexible:

Performance marketing campaigns can easily be adapted to changing market conditions and business goals. Businesses can pivot as necessary and remain ahead of their competition by using this flexibility.

5. Scalable:

Based on the business’s needs, performance marketing campaigns can be scaled down or up. Businesses can use this flexibility to expand their marketing efforts when they enter new markets or expand their operations.

6. Increases brand visibility:

Performance marketing campaigns are a way for businesses to increase brand awareness and visibility by driving specific behaviours and actions from their target audience. This helps businesses to be leaders in their field and can attract more customers.

Final words

Performance marketing is the best option if you are new to a business or a small business owner. Since the rise of social media, it is very important for businesses to run digital ads. You can use different channels of performance marketing, and the benefits of performance marketing will help you to choose the correct type of digital marketing for your business.


What are the 4 types of marketing channels?

The four types of marketing channels are:
1. Direct marketing channels: where companies communicate directly with customers, such as through email or direct mail.
2. Indirect marketing channels: where companies use intermediaries, such as retailers or wholesalers, to reach customers.
3. Dual distribution channels: where companies use both direct and indirect channels to reach customers.
4. Reverse distribution channels: where products move from customers back to companies, such as in the case of product returns or recycling.

What is performance marketing examples?

Performance marketing is a type of marketing where companies pay for advertising based on specific metrics, such as clicks or conversions. Examples of performance marketing include pay-per-click advertising, affiliate marketing, and influencer marketing.

Is email a performance marketing channel?

Email can be considered a performance marketing channel, as companies can track metrics such as open rates, click-through rates, and conversions to measure the effectiveness of their email campaigns. However, email can also be used in other types of marketing channels, such as direct marketing.

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Team EMB
Team EMB
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