The Performance Marketing Primer for Non-Consumer Brands

Over the years, there have been significant changes in the marketing ecosystem. For example, marketers’ focus has changed from the cost-per-click (CPC) model to the cost-per-acquisition (CPA) one. Likewise, organizations haven’t been relying much on the traditional marketing funnel and are instead employing more direct tactics to amplify revenue.

Amid this shift, performance marketing has gained utter prominence. 

What is Performance Marketing?

Performance marketing is a data-driven approach to marketing where businesses pay for specific actions that drive measurable results. Unlike traditional advertising, performance marketing focuses on ROI (Return on Investment) and can be tracked, measured, and optimized in real time. It encompasses various avenues, including search engine marketing, social media advertising, email marketing, affiliate marketing, and more.

Why Is Performance Marketing Key for Brands?

In its 2022 report, the Performance Marketing Association (PMA) outlined how affiliate marketing investments had increased by 47% from 2018. In the US alone, the projected investments were around $8.2 billion. Research also suggests that such investments drive 15% of the eCommerce sales in Canada and the US.

Performance marketing can be highly beneficial for brands, especially those in the IT services and FinTech sectors. Here’s how:

Building Brand Authority

Performance marketing can help position the brand as an industry leader by creating valuable content, thought leadership pieces, and even webinars demonstrating one’s expertise — thus attracting potential clients and building trust and credibility within the target market.

Measurable Results

Measurability is one of the most significant benefits of performance marketing. You can track every click, impression, and conversion with powerful analytics tools. This allows for making data-driven decisions and deploying the budget where it has the greatest impact.

Lead Generation & Conversion

Performance marketing is an effective lead-generation tool. Non-consumer companies can attract important leads and nurture them through the sales funnel by using targeted campaigns and customized landing pages. 

Multiple Channels

Performance marketing’s flexibility to vary the marketing efforts — from Google Ads to LinkedIn-sponsored content — helps brands interact with prospects at numerous touchpoints in their buyer’s journey.

Collaboration Between Groups

Performance marketing promotes collaboration among marketing, sales, IT, and other departments. This synergy, in turn, aids in strategy alignment by ensuring that marketing initiatives support sales objectives and that IT infrastructure can manage the extra demand generated by marketing campaigns.

Factors to Consider While Adopting Performance Marketing

Here are some key factors to keep in mind while going the performance marketing way:

Business Objectives

It is critical to identify clear corporate objectives before entering into performance marketing. Do you want to amplify brand exposure, generate leads, enhance sales, or improve client retention? Understanding your objectives can help you develop a performance marketing strategy optimized for the desired outcomes.


Determine your performance marketing budget and strategically allocate resources depending on your objectives and projected ROI. Remember that performance marketing offers flexibility, so you may change your budget as you assess the outcomes.

For instance, if your goal is to generate leads, your initial budget would be allocated towards online ad campaigns that drive greater visibility of your brand. As you generate leads, you may allocate additional funds toward nurturing those leads until they convert into paying customers.

Channel Mix

When choosing social media platforms for promotion, it’s imperative to align your strategies with the demographics and engagement levels that best suit your industry.

LinkedIn, for instance, emerges as a prime choice for IT services due to its remarkable reach and resonance within the B2B landscape. Over 90% of B2B marketers use LinkedIn for organic social marketing, marking its effectiveness in connecting businesses within the IT sector with potential clients & partners.

Compliance & Regulations

Just as a sailor relies on charts and navigation tools to navigate stormy seas, businesses must understand and adhere to the regulatory frameworks that govern their industry. 

In the first half of 2023, the world witnessed a staggering 97 fines totaling $189 million, primarily from lapses in compliance with critical regulations such as Know Your Customer (KYC) and sanctions infractions.

To ensure the smooth sailing of your performance marketing endeavors, it is critical to pay attention to regulations and proactively research any applicable legislation, such as GDPR, HIPAA, and the CFPB. This would direct your firm toward ethical, responsible, and effective performance marketing.

How To Create a Budget for Performance Marketing?

There are various facets to consider when it comes to creating a budget for performance marketing initiatives. Here’s a checklist to get you started:

  1. Document your specific marketing objectives (e.g., lead generation, brand awareness, sales growth).
  2. Calculate your Cost Per Acquisition (CPA) and Customer Lifetime Value (CLV) to gauge the financial feasibility of campaigns.
  3. Outline the customer journey from awareness to conversion to identify key touchpoints for marketing.
  4. Review past marketing campaigns to determine which strategies delivered the best ROI.
  5. Distribute your budget across various marketing channels and campaigns based on their historical performance.
  6. Reserve a portion of your budget for testing new strategies.
  7. Account for seasonal variations in your industry and adjust your budget accordingly to capitalize on peak periods.
  8. Implement robust analytics tools to measure the ROI for each marketing channel and campaign.
  9. Maintain a small reserve within your budget to address unforeseen circumstances or opportunities that may arise.
  10. Periodically review your budget to ensure it aligns with your changing business goals and market conditions.

So, there you have it! Performance marketing will keep soaring in the coming years. It would be critical for organizations to keep cognizant of the transformations (especially on the technology side) and how they’re influencing the effectiveness of performance marketing initiatives. For more information, get in touch with our experts.