How to Sell Performance-Based Advertising

Performance-Based Advertising is emerging in the B2B marketplace. This is an effective method for advertisers to spend their marketing money on online publishers and pay only when the desired action is achieved.

Today’s B2B marketers are driven by forces that are drastically changing the way they think. Budget reduction and lead generation have become more important than the brand building, and calculating the return on your marketing investment is essential. As advertisers explore the horizon of strategies to address these challenges, performance marketing is seen as an attractive solution. This thriving market channel generates billions of dollars in retail/consumer sales. Companies like Expedia, Marriott, Home Depot and Wal-Mart have discovered the power of performance marketing to extend their reach to customers through thousands of websites, blogs, and portals. And publishers who own these Internet properties reap the rewards.

Performance marketing is emerging in the B2B marketplace. This is an effective method for advertisers to spend their marketing money on online publishers and pay only when the desired action is achieved. For publishers, it offers incremental revenue generation and monetization with sites that complement its ad sales model. But performance-based advertising requires its own sales strategy and approach. Publishers and their sales teams need to understand the nuances as they take advantage of this new revenue opportunity

What is performance marketing?

Performance marketing is a new online advertising strategy that rewards publishers when they generate leads, clicks, or other actions with customer value.

It’s important to remember that the advertising assets sold in performance marketing are the same as traditional products: banners, newsletter sponsorships, video downloads, white paper campaigns, in-text ads, etc. This is a different compensation strategy.

In the performance marketing model, web publishers provide ads and ad links on their sites. When a visitor clicks on advertiser links and logs into a landing page, a prompt is created and the publisher receives a fee. In this model, the advertiser pays the web publisher when the desired action is achieved, rather than paying a fee for space.

Because publishers now take the risk of marketing performance, they control when, where, and how often ads are displayed. For this reason, performance-based advertising is a great opportunity for publishers to monetize their sales.


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