Performance based marketing strategies have made the advertising field more exciting thanks to dynamism and assured results. It allows the advertiser to pay for only those views, clicks, leads or sales that happened directly as a result of the advertisement campaign. The four main channels of performance based marketing strategies are CPM, CPC, CPL and CPA. The cost of running these advertisement campaigns differs sharply due to their different performance criteria. While CPM is mostly related to the views generated, CPC and CPL are interested in clicks and leads whereas CPA is focused on the actual sales.

Companies resort to performance based advertising due to a number of reasons like:

• When the advertiser is not much concerned about increasing the brand awareness but is more focused on driving action.
• When the advertiser wants to evaluate the ROI on their advertisement campaigns.
• In performance based advertisement, the advertiser can focus more on the real-time measurement on the amount of click, leads, views generated or sales of the products.
• In performance based advertisement campaign, the payment is based on the actual performance of the advertisement in generating leads, clicks or sales.
• Small companies on a tight budget use performance based advertisement to ensure that the ROI on their advertisement remains very high.
• It is used by different companies to channel a higher traffic to their websites.
• Performance based advertisements make use of a lot of channels to increase their contact point with the targeted audiences like responsive websites for the mobile users, content development and the social media.

The most amazing feature of the performance based advertisement campaign is that the advertiser can easily measure their ROI. Here are some of the ways in which they can do this:

1. Track and measure success: Performance based marketing allows advertisers to measure the entire cost chain from the acquisition cost, running costs and others.
2. Better use of Facebook ads: When an advertiser uses Facebook as a marketing channel, then they can make use of the various formats of ads already integrated into the Facebook page to get better results.
3. Easy to crunch numbers:In case of CPA, the effectiveness of the advertisement campaign can be easily found out by measuring it against any increase in the sales figures.

Due to these extraordinary features of performance based advertisement has become the toast of the market. If you are not using it, you are missing out on an opportunity to reach a completely new set of audiences that you wouldn’t have reached otherwise.