Performance-based advertising is a form of advertising in which the purchaser pays only when there are measurable results. Performance-based advertising is becoming more common with the expansion of digital media, notably the Internet and OTT/connected TV, where it is possible to measure user actions directly resulting from the advertisement. For transaction or call volumes to grow with performance media campaigns, both buyer and seller must perform on all levels of running and managing successful campaigns. High quality & diverse media placements must be delivered by the advertising seller, while highly trained call agents & technology infrastructure must be in place on the advertiser side. Both parties working together, must perform quality control and consistently track and measure campaign results.
Typically, less than 10% of all advertising sold is performance based. Buyers have higher expectations regarding sales conversions with this type of media while the market is highly competitive and the best (highest performing) inventory is sold out quickly. The performance media market is constantly and rapidly shifting. New media models are emerging that represent lucrative growth opportunities for all parties operating in this dynamic marketplace.