What is the primary characteristic of performance marketing?

The primary characteristic of performance marketing is that advertisers pay only for measurable results. This approach fundamentally shifts the risk from advertisers to publishers, as payments are tied directly to the outcomes generated, such as clicks, leads, or sales. This model incentivizes efficiency and effectiveness, ensuring that advertisers only invest in marketing strategies that demonstrate tangible returns on their investment.

Performance marketing relies heavily on data analytics and tracking to assess the success of campaigns. By measuring specific actions that users take as a result of advertising efforts, businesses can optimize their marketing strategies in real-time. This results in a more accountable approach to advertising, where success is defined by quantifiable metrics rather than just exposure or impressions.

In contrast, paying upfront for advertising space, investing in long-term brand awareness, or focusing exclusively on print media do not align with the fundamentals of performance marketing, which emphasizes the correlation between payment and results achieved.