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    Performance marketing is changing at an incredibly fast pace. Over the past few years, we have gone from manually optimized campaigns to semi-automatics that take over most of the tasks, implement changes to accounts, and even prepare copy or ad creatives. Data is analyzed in real time, allowing for quick testing and changes. Omnichannel marketing is practically ubiquitous, multichannel is already standard. So how to find yourself in this time and how to plan good performance marketing. I invite you to the article!

    What is performance marketing?

    Performance marketing is the term used to describe online campaigns in which advertisers pay digital agencies or the advertising platforms themselves for results, such as clicks or conversions, for example.

    Unlike traditional and organic marketing, performance marketing is used specifically to generate a specific behavior, sale or return on investment. The entire performance marketing process is designed to achieve a well-defined marketing goal.

    The entire process of performance marketing is designed to achieve a well-defined marketing goal.

    While corporations may spend millions on branding, most companies need to focus on the bottom line to remain profitable. Performance marketing is designed to achieve this goal and do so quickly and with full transparency.

    Performance marketing is designed to achieve this goal.

    What makes performance marketing different from other forms of advertising?

    In most traditional forms of advertising, it is the advertiser who pays an upfront fee for the ad space, regardless of the results. Often, he doesn’t have access to the data, either before or during the broadcast, let alone after. This can mean spending hundreds or even thousands of zlotys without any conversion, sales or site traffic. With performance marketing, advertisers only pay when a measure of success (traffic, conversion or transaction) is achieved.

    How to measure performance marketing?

    The most basic performance marketing metric is ROI (return on investment) – every action in performance marketing is measured, reported and analyzed against predefined KPIs. In most cases, ROI will be the same as ROAS, or return on advertising budget invested. Note that the goal is not always to continuously increase ROAS or ROI. After a certain point, you can generate more and more profit while maintaining, or even decreasing ROAS. Thus, from a marketing perspective, ROI is a good metric, but from a business perspective, simply generated profit is always better.

    I discuss below some more key KPIs commonly used in performance marketing:


    CPM is the cost an advertiser pays per 1,000 ad impressions. In other words, it is the price for every 1,000 ad impressions, which is not equivalent to 1,000 people . CPM does not measure the actions taken by an audience; it only determines the price per ad display. CPM is increasingly irrelevant in the current performance marketing market because it is not tied to any specific action.


    Cost per click refers to the price paid for each time a potential customer clicks on an ad. CPC is a better indicator of engagement than CPM because the viewer took an action and actually clicked the ad (here again, note that a click alone does not mean a visit to the site). Often the goal of advertisers is to lower CPC, but in many cases it is more important to optimize for conversion value.


    CPA stands for cost per action and measures the effectiveness of a campaign according to the specific action you want to achieve, such as an e-book download, registration or subscription, purchase or other action. In performance marketing, actions taken by potential customers are considered the most important tangible and measurable result, so CPA is one of the most important metrics.


    LTV is an indicator that determines the expected lifetime value of an individual customer during their entire relationship with a brand or company (most commonly, 12 months is used as the estimated period). LTV estimates the expected revenue from acquired customers based on their current activity, but also using advanced methods such as predictive analytics. The LTV study is particularly important for long-term performance marketing analysis. It is often juxtaposed with the cost of customer acquisition (CAC).

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    How to build a performance marketing strategy?

    There are so many different types of performance marketing channels that there is no single way to have the perfect strategy. However, I’ve put together a scenario that can help you plan your performance efforts.

    Step 1: Determine the goal of the campaign

    Before you can measure the success of any campaign, it’s important to set goals. Many advertising platforms require you to set goals before creating ads or setting up campaigns. Campaign goals may influence where and to whom your ads are displayed. If your goal is to make a sale, the algorithms will look for user intent closer to a “here and now” purchase.

    The most popular performance marketing goals are:

    Once you have established campaign goals, you can use advertising platforms to create campaigns targeted to those specific goals.

    Step 2: Select performance marketing channels

    In performance marketing, it’s a good idea to diversify the channels you use, rather than focusing solely on one. This helps increase the exposure and reach of your campaigns, while giving you room to test. Whether it’s affiliate marketing, search engine advertising or social media, look for channels where you are most likely to find your target audience.

    Step 3: Create and launch a campaign

    A big part of the job of performance marketing is to create the campaign itself and create ads and messages that meet their needs and grab their attention.

    The better you understand your target audience and how your product or service might appeal to them, the easier it will be to create the best ad creatives and headlines. Of course, the technical aspects of your campaign, such as ad dimensions, character limits and acceptable images, also depend on the specific platform or channel you are using.

    The more you understand your target audience, the easier it will be to create the best ads and headlines.

    Step 4: Optimize your campaign

    The real work begins once the campaign is launched. Performance campaigns will start generating data as soon as they launch. It’s up to the marketer to optimize individual campaigns, groups, or ads for performance. Track metrics such as engagement, cost, number of conversions, cost per conversion and ROI to determine which traffic sources are working best, and then allocate ad resources accordingly. Use performance marketing campaigns not only to increase sales, but also to identify the best channels, audiences and campaign goals to increase ROI.

    Step 5: Be ready for threats

    As with any marketing campaign, performance marketing can come with some challenges, such as:

    • impersonation of competitors with your brand
    • generating incorrect leads/conversions
    • privacy risks
    • restrictions on tracking cookies

    Best performance marketing practices

    In performance marketing, results are paramount, but achieving those results also requires strategic thinking. Here are some best practices, backed by insights and data, to make sure you’re on the right track:

    1. Understand your Audience group Before launching any campaign, it is important to know who you are targeting. Customize your ads to match your audience’s preferences, needs and behaviors. Use the data you already have for this.

    2. Set clear goals and KPIs You need to know what you want to achieve. Whether it’s increasing site traffic, boosting sales or generating leads, you need to define them precisely and embed them over time.

    3. About 88% of consumers say authenticity is important when deciding which brands they will like and support. This means it’s important to make sure your ads are both engaging and useful to your audience.


    4. Take advantage of A/B testing. Don’t stop with the first version of an ad. Test different variations to see which one works best.

    5. Regularly test the effectiveness of your campaign and make the necessary adjustments to stay ahead of the competition. One experiment is not enough to rest on your laurels.


    7. Invest in remarketing. Retargeting is an effective way to re-engage potential customers who have shown interest but have not converted.


    8. Use automation and AI. The world of performance marketing is dynamic. Stay on top of the latest trends, tools and techniques to best allocate your time. Pay more attention to strategic decisions.

    To-be-remembered about performance marketing!

    1. Performance marketing are results-oriented campaigns where advertisers pay for specific actions.
    2. Key performance marketing tools include analytics platforms such as Google Analytics 4, landing page development tools such as Unbounce, and A/B testing tools such as Optimizely.
    3. Marketers can leverage additional performance retargeting, predictive analytics and personalized content tools to achieve better results from results-driven campaigns.
    4. Success in performance marketing depends on understanding the audience, setting clear goals, conducting A/B testing, ensuring tracking transparency, monitoring the competition, and taking care of the user experience.

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    Tomasz Starzyński
    Tomasz Starzyński

    CEO and managing partner at Up&More. He is responsible for the development of the agency and coordinates the work of the SEM/SEO and paid social departments. He oversees the introduction of new products and advertising tools in the company and the automation of processes.