What Is Performance Marketing?
Results-driven marketing where advertisers pay for specific measurable actions like clicks, leads, or sales rather than impressions.
Performance Marketing Explained
Performance marketing focuses on measurable, attributable outcomes. Every dollar spent is tied to a specific result: a click, a form submission, a phone call, or a purchase. If it cannot be measured, it is not performance marketing.
The primary channels are paid search (Google Ads), paid social (Meta, LinkedIn), display/programmatic advertising, affiliate marketing, and retargeting. Each channel offers targeting capabilities that let you reach specific audiences with measurable results.
The advantage of performance marketing is accountability. You know your cost per click, cost per lead, and cost per acquisition for each channel and campaign. This makes budget optimization straightforward: put more money into what works, cut what does not.
The limitation is that performance marketing captures existing demand rather than creating it. Someone must already be searching for your solution or scrolling past your ad. For long-term growth, performance marketing works best alongside demand generation and brand building.
Why Performance Marketing Matters
For businesses that need leads now, performance marketing is the fastest path to pipeline. A well-optimized Google Ads campaign can generate qualified leads within 48 hours of launch. The key is knowing your unit economics (CAC, LTV) so you can spend profitably.
Common Mistakes
- 1
Measuring success by click volume instead of cost per qualified lead or customer
- 2
Running ads without conversion tracking, making optimization impossible
- 3
Relying 100% on paid channels without building organic traffic as a complement
Related Terms
Customer Acquisition Cost (CAC)
The total cost to acquire one new customer, calculated by dividing all sales and marketing spend by the number of new customers acquired.
Attribution Modeling
Determining which marketing touchpoints receive credit for conversions, from simple last-click models to complex multi-touch attribution.
Conversion Rate Optimization (CRO)
The systematic process of increasing the percentage of website visitors who take a desired action like purchasing, signing up, or requesting a quote.
Cost Per Acquisition Benchmarks by Industry
Average costs to acquire one customer across different industries, used to evaluate whether your marketing spend is competitive or wasteful.
How Attainment Helps
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Frequently Asked Questions
How much should I spend on performance marketing?
Start with a test budget of $2,000 to $5,000 per month per channel. Scale spend once you know your cost per acquisition and can confirm it is below your target. Most B2B companies spend 5-10% of revenue on performance marketing.
Which performance marketing channel should I start with?
Google Ads (search) if people are actively searching for your product or service. LinkedIn Ads if you are targeting specific B2B job titles or industries. Meta Ads if you need high volume at lower cost per impression. Start with one channel, optimize it, then expand.
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