Performance Vs Affiliate Marketing

Performance Vs Affiliate Marketing

Performance marketing and affiliate marketing are the two major online advertising strategies to raise the stakes in the digital marketing world. In this article, we will explain the fundamental differences between the two terms. While Affiliate and Performance marketing may work on the same principle, performance marketing is just not limited to affiliates.

Performance marketing meaning

Performance marketing like it sounds is based on performance. It is a type of online advertising in which the merchants or retailers pay the affiliates only when a specific action such as download, click or a sale is accomplished.

To get a better outcome, a company will pay more if better results are obtained and will not pay anything if the mission is not achieved.

Is affiliated marketing different from performance marketing?

Affiliated marketing originated earlier than performance marketing and is still used as a smart marketing strategy. Affiliate marketing is a part of the broad term “performance marketing”, which includes e-mail, search and other types of marketing.

In affiliate marketing, the affiliates promote the product to the audiences and pay according to the count of viewers they bring. The affiliates need not ensure the customer will buy or use that specific service.

The AI-based technologies can now recommend personalized products to buyers depending on the search list, cart products, and trending products. This new technique of marketing based on performance opens a vast area for marketing exposure and growth.

In a nutshell, both performance marketing and affiliate marketing seem the same; commission or kick back at the end of the day. But there is a different approach in the processes and performance marketing adds a lot more.

Working Procedure:

Performance Company comprises four groups: retailers, merchants, network and tracking platform, and management companies. Performance marketing is beneficial if the in-house team has limited resources, experience, past affiliated relationships. To work with an affiliated company, its goals, budget, team size needs to be considered. The payment marketing structure used in this type of marketing is:

Depending upon sale– affiliate is paid when the transactions of the generated sale are completed. Depending upon a lead – The affiliate is paid when he gets a complete registration from the consumer.

Depending upon downloads or clicks– The affiliate is paid for any clicks that lead to installation or download of an application.

Depending upon ‘X’ – X is defined by the merchants. Sales, click, download are a few examples.

Types of performance marketing channels:

By posting an advertisement on any paid search advertising programs. Though this process is very simple, understanding and utilizing is very important.

Posting on social media all the traffic in this channel comes from social media. Based on the target audience of any channel for advertisement.

To any consumer leader’s opinion matters a lot. Native advertising helps you to reach people in a natural way leading to the growth of the sale rate.

The difference between performance marketing and advertising marketing is subtle, but performance marketing provides significant benefits to business growth.

Affiliate marketing earns profits by promoting advertiser’s brands through affiliates, among their audiences within their budget range. This type of marketing leads to an increase in market share, audience, and targeted traffic. The most crucial benefit of performance marketing is it leads to an increase in market share and budget size and decrement in market risks by enhancing your brand.


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