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Digital Marketing
performance marketing vs digital marketing

Performance marketing vs Digital marketing : which is best?

Performance marketing vs Digital marketing is the big picture, using various online channels to reach and connect with audiences. Performance marketing drills down within digital marketing, focusing on measurable results like sales and leads from those channels.

performance marketing vs digital marketing

Let’s understand by example:

Imagine you’re trying to grow your book-selling business. You have two teachers who can help: Mr. Digital Marketer and Ms. Performance Marketer. They both want to help you sell more books, but they have different teaching styles.

Digital Marketer is like a well-rounded teacher. He covers a lot of ground, teaching you how to:

  • Set up a book store online: This could involve creating a social media page or a website with enticing photos of your storybooks.
  • Design cool posters and flyers: He’ll help you create eye-catching visuals to grab people’s attention.
  • Run contests and giveaways: Maybe you offer free book summaries to every tenth customer! This can generate excitement and get people talking about your store.

 Digital Marketer’s goal is to build awareness and make your bookstore the best one on the block. He wants people to know you exist and to remember how good and affordable your books are.

 Performance Marketer, on the other hand, is all about results. She’s like that teacher who loves pop quizzes. 

Here’s what she focuses on:

  • Tracking how many books you sell:  Performance Marketer would have you set up a system to track exactly how many books you sell each day.
  • Knowing how much each book costs to make: This way, you can see if your book prices are high enough to cover your expenses and make a profit.
  • Targeting book lovers: Set up your stand or host events at local bookstores, libraries, or literary festivals.

 Performance Marketer cares about the immediate outcome: how many books you sell today.

Is performance marketing vs digital marketing same?

Performance marketing and growth marketing are very similar, but they also have subtle differences. Both are digital marketing strategies that focus on results, but their goals and methods are slightly different.

performance marketing vs digital marketing

In short:

  • Digital marketing is a broad strategy, like all the subjects you learn in school. It covers everything you can do to promote your bookstore online.
  • Performance marketing is a specific tactic within digital marketing, like that pop quiz. It focuses on getting measurable results quickly.

The Bookstore Example in Action: performance marketing vs digital marketing

Let’s say you follow Mr. Digital Marketer’s advice and create a fantastic website for your bookstore. It has beautiful pictures, story summaries about your best books, and even a game where people can guess the book’s name after listening to summaries. This is great for brand awareness, but it might not directly translate into sales.

Ms. Performance Marketer would then jump in and say, “This is awesome! But how do we know if it’s working? Let’s add a button on your website that says ‘purchase Now’ and takes people to a page where they can buy virtual book summaries.” Now you can track exactly how many people click that button and buy a book, giving you a clear picture of your website’s performance.

The Takeaway:

Both performance marketing vs digital marketing valuable for individuals. You’ll need a good mix of brand awareness (Mr. Digital Marketer) and results-driven tactics (Ms. Performance Marketer) to run a successful bookstore, or any online business for that matter!

What is performance marketing?

Performance marketing is a digital marketing strategy that’s driven by results. It’s ideal for companies that are looking to reach their audience at scale because payment is based on how users interact with the content.

Performance Marketing focuses on End Result- Leads rather than Qualified Leads other metrics are important but Performance Marketers don’t focus on these.

Performance marketing refers to a form of digital marketing in which brands only pay marketing service providers after their business objectives have been met or when specific actions have been taken, such as a click, sale, or lead. In other words, it is performance-based marketing.

Performance marketing works when advertisers connect with either agencies or publishers to design and place advertisements for their company on any number of performance marketing channels — social media, search engines, videos, embedded web content, and more. Instead of paying for an advertisement traditionally, these advertisers pay based on how well their ad performs, by measuring the number of clicks, impressions, shares, or sales.

Let’s understand by examples: 

Imagine you’re running a bookstore. Regular marketing would be like putting up a colorful sign and hoping people see it. You might get a book lover, but there’s no guarantee.

Performance marketing is like having a salesperson on commission. You only pay them if they sell the book!

Here’s how it works:

  1. Set a Goal: You want to sell 50 books a day.
  2. Partner Up: You find a promoter (like a social media influencer) who loves books!
  3. They Advertise The promoter posts about your affordable books on their channels.
  4. You Pay for Results: You only pay the promoter if people see their post and buy books from you (clicks that lead to sales!).

This way, you’re sure your marketing is reaching the right people and you’re only paying for success (those refreshing sales!).

performance marketing vs digital marketing

Here’s the bonus: Performance marketing comes in many types of books:

  • Pay per Click (PPC): You pay a small fee every time someone clicks on your online ad.
  • Affiliate Marketing: Partner with websites that promote your bookstore and earn a commission on each sale.
  • Cost per Acquisition (CPA): You pay the marketer a fee for every new customer they bring in, like someone who signs up for a discount on your website.

With performance marketing, you’re the bookstore owner in control, making sure every penny goes towards book lovers and sweet success!