Performance marketing is a type of online advertising where advertisers pay based on the performance of their ads. Unlike traditional advertising models where payment is made upfront regardless of results, performance marketing typically involves paying only when a specific action is completed, such as a click, lead generation, sale, or other predefined goal.

This approach allows advertisers to directly track and measure the effectiveness of their marketing campaigns, as they can see exactly how much they’re spending relative to the results they’re achieving. Common channels for performance marketing include search engine advertising (such as Google Ads), affiliate marketing, email marketing, and social media advertising.

Performance marketing is often favored by businesses because it offers more accountability and transparency compared to traditional advertising methods. Advertisers can optimize their campaigns in real-time based on data and insights, ultimately maximizing their return on investment (ROI).