How is Performance Marketing Different from Traditional Marketing?
Performance marketing is a recent form of digital marketing and it differs from the traditional forms of marketing in many ways.
Basis | Performance Marketing | Traditional Marketing |
|---|---|---|
Objectives | Performance marketing aims at attracting a large audience base. | Traditional marketing aims to improve brand loyalty, awareness and trust. |
Targeting | Performance marketing targets specific segments of consumers who are more likely to get interested in a particular product based on market demand. | Traditional marketing targets large demographic areas. |
Variations | Performance marketing releases advertisements on social media platforms, search engines as well as Email marketing. | Traditional marketing uses conventional methods such as television, radio, print, live events and sponsorships. |
Cost Structure | Performance marketing is dependent on return on investment. It pays the marketing agencies only when they get profitable results, i.e., the quantity of clicks, leads and sales. | Traditional marketing does not measure the impact of sales on consumer psychology. Here, the profitable results are not guaranteed. |
Innovation and Brand Development | Performance marketing focuses on innovation and immediate results rather than long-term growth. | Traditional marketing concentrates on improving brand image and storytelling. |
Marketing Channels | Affiliate marketing, influencer marketing, social media marketing and search engine marketing are some common channels of performance marketing. | Traditional marketing depends on physical outlets or distributors. |