Digital Marketing Versus Performance Marketing

Digital Marketing Vs Performance Marketing

Digital Marketing vs Performance Marketing

The main difference between digital marketing and performance marketing is in their marketing approach. Performance marketing is a result-centric digital marketing strategy. Digital marketing is a huge term that promotes the brand, sells the product, and connects potential customers using various channels. Digital marketing has various payment models, strategies, and channels.

Digital Marketing and Performance Marketing

Performance marketing is the optimization of these channels and strategies. Performance marketing has short-term goals than digital marketing. It is easy to measure the metrics of performance marketing. Performance marketing has the fastest and most visible result. Digital marketing takes time to produce a result when compared to performance marketing.

What are Digital Marketing And Performance Marketing?

Digital marketing is online marketing to connect potential customers using the internet. Digital marketing is used to increase the digital presence of a business. That is to drive traffic to a website using digital tools. Some of the digital tools are social media, email marketing, search engine marketing, display advertising, video marketing, mobile marketing, and pay-per-click advertising. Digital marketing focus on lead generation, conversion, brand awareness, and reach.

Performance marketing is a specific form of digital media advertising. Performance marketing is a business based on clients’ actions like clicks, sales, and leads. In performance marketing, marketers need to set the proper budget and impression for the campaigns and track the campaign to analyze the result. In short, performance marketing is performance-based marketing. Performance marketing using paid media such as Google Adwords, Facebook ads, LinkedIn ads, and banner ads. Performance marketing only focuses on lead generation and conversion. Performance marketing channels are banner(Display) ads, native advertising, content marketing, social media, and search engine marketing (SEM).

Instead of paying for an advertisement in digital marketing, advertisers can only pay for the performance of an ad in performance marketing. Performance is measured by the number of leads, impressions, likes, and shares. Digital marketing creates brand awareness and interaction with the target audience. Advertisers are not paying for the actual conversion in digital marketing. While in performance marketing, advertisers are paying for the leads and for converting them to potential customers. It is important to understand digital marketing vs performance marketing.

Digital Marketing Vs Performance Marketing

Metrics to Measure Performance Marketing

Cost Per Mille (CPM): It is the cost of showing every 1000 times digital ad to viewers. Marketers focus less on this metric.
Cost Per Click (CPC): It is the cost of clicking the ad every time by the viewer.
Cost Per Action (CPA): It measures the performance of a campaign by acting by the target audience like downloading, subscribing, signing up, etc.
Life Time Value (LTV): It is the lifetime value of each customer. Expected spending of each customer.

Metrics to Measure Digital Marketing

Bounce Rate: It is the number of visitors to a site and left back without performing any action.
Page Views: It is the total number of pages viewed.
Conversion Rate: It is the total number of conversions from a specific website.
Click-Through Rate (CTR): It is the ratio of the total number of clicks to the total number of viewers.

Types of Performance Marketing

types of performance marketing

Search Performance Marketing
It is the process of paying for the search ad shown on the search engine result page. It drives traffic to a website. It works by finding the target audience with the right keyword.

Social performance marketing
It is the paid ads and organic posts on social media and also focuses on high-quality content. Content should be engaging and interactive for customers.

Email Performance Marketing
It uses the email marketing strategy to grow its business. It measures the opening rate of emails through quality content and targets the right audience.

Publisher Performance Marketing
It is the paid publisher ad showing on the websites and apps which the advertiser does not own. It also drives traffic to a website.

Affiliate Performance Marketing
It aims to get customers to buy products and services from the advertiser for a commission. It can be done through a partnership with affiliate publishers and influencers.

Types of Digital Marketing

types of digital marketing

Content Marketing
It is the creation of high-quality and useful content. Different types of content are blogs, social media posts, videos, webinars, infographics, templates, datasheets, and reports. Publish useful content for the audience.

Search Engine Marketing
It is the process of getting your website at the top of the search engine result page. Know the keyword that the audience searches for to get a better result. Paid ads and organic comes under this marketing.

Social Media Marketing
Social media allows interaction and engagement with customers. You can make paid ads and can also post content on social media to reach the audience. Select the appropriate channel for your product or service. There are various channels like Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat.

Paid Advertising
Paid advertising has two different payment models. PPC (Pay Per Click): You can buy clicks on your ad through a keyword bidding auction. CPM (Cost Per Mile): It benefits more when you use the short tail keyword. It is the cost for every 1000 impressions.


Digital marketing and performance marketing differ in their approaches. Digital marketing promotes brands, sells products, and engages potential customers across channels, while performance marketing optimizes channels for specific goals and measurable outcomes. Digital marketing focuses on long-term results and brand awareness, while performance marketing targets immediate, tangible results. Digital marketing includes diverse strategies and payment models, while performance marketing centers on lead generation and conversions. Both forms are vital for business success and require effective utilization. Join the best digital marketing course in Kerala and explore more about performance marketing and digital marketing.