The term performance marketing is used in connection with the use of online marketing aimed at a measurable response from the consumer or the success of a marketing campaign.
Measurability and further optimization of the campaign characterize performance marketing. Such measurable performance, e.g. in the form of clicks, leads, sales or completed transactions, is the basis for performance billing. Common key performance indicators( KPI) for performance measurement include pay-per-action ( PPA), pay-per- click( PPC), click-through rate and conversion rates. Performance marketing is a key element in the marketing mix of e-commerce companies to avoid wastage and to use marketing budgets efficiently.
The measures used in performance marketing include affiliate marketing, e-mail marketing, proximity marketing, and search engine marketing,