Pay-for-performance advertising
Pay-for-performance advertising, also known as performance-based advertising or pay-per-performance advertising, is a type of online advertising in which the advertiser pays only for a specified action that is tied directly to the advertisement. These actions can include clicks, impressions, leads, sales, or any other predetermined goal.
One common example of pay-for-performance advertising is affiliate marketing. In affiliate marketing, an advertiser pays a commission to an affiliate for driving traffic or sales to the advertiser’s website through the affiliate’s marketing efforts. The affiliate is only paid when a specific action, such as a sale or lead, is generated.
Another example of pay-for-performance advertising is pay-per-click advertising, where advertisers pay a fee each time their ad is clicked. This model ensures that advertisers only pay for actual clicks on their ads, rather than just for their placement.
Pay-for-performance advertising is often seen as a more cost-effective and efficient form of advertising, as advertisers only pay for tangible results. This model also allows advertisers to track the success of their campaigns more accurately and make data-driven decisions for future advertising efforts.
Overall, pay-for-performance advertising offers a win-win situation for both advertisers and publishers, as advertisers only pay for successful outcomes and publishers are incentivized to drive quality traffic and results.
For more information on pay-for-performance advertising, you can visit the Wikipedia page.