Performance Marketing

A model of digital advertising where you only pay when a specific measurable action occurs, such as a click, lead, or sale, rather than paying for impressions or reach.

Performance marketing ties spend directly to outcomes, making it easier to calculate ROI and scale what works. It shifts the risk from advertiser to publisher in many models.

A founder uses Meta ads with a conversion objective, paying only when someone completes a purchase on her website. She tracks her cost per acquisition precisely and scales budgets only on campaigns with a profitable return.