Paid media basics

Performance marketing

Advertising that is planned, bought and judged by measurable results, such as leads, sales or sign-ups.

What it is

Spend moves toward what produces results and away from what does not. Search, social and shopping ads are the usual channels, because each result can be traced back to an ad.

Why it matters

For lead generation and e-commerce

It makes advertising accountable to the same numbers as the rest of the business.

In practice

Results are tracked per campaign and ad, and budgets follow the cost and value of those results.

A common mistake

The weak point is the word measurable. What is easy to count is not always what matters, so strong programmes pair platform numbers with sales data and tests.

All terms

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