Marketing is an area without which the whole economy would not make sense and is an important part of a company’s development. In recent years, many different disciplines have emerged in the field of marketing, which has a similar purpose but is performed in different ways.
Due to the different channels of distribution of campaigns, today many things get a different meaning. We used to have only the classic media like television and radio, and advertising was done through billboards, posters, brochures, leaflets, branding of buildings and vehicles, and so on. But the age of the Internet has opened up a whole new channel of advertising.
From websites, social networks, and even influencers, today’s marketing has such a broad meaning that it sometimes becomes really difficult to follow all the trends. All different types of marketing, including affiliates, are part of performance marketing, but as time goes on, the differences disappear and many similarities fade into each other.
However, there is not the same thing, at least for now, in the current state of marketing, and today we will define the terms performance and affiliate, so we can draw an accurate conclusion about what the difference is and why these things are still different in general.
But it is interesting to know that the term performance marketing was established much later than affiliate marketing, although it encompasses a wider range of activities. Let’s look at the difference.
What is affiliate marketing?
By definition, it is performance-based marketing, when a company or business has its own affiliates, who receive a monetary reward or compensation for each visitor who is brought to the site and buys a product. This is about a person who promotes a certain product or service through his channels, on behalf of the company and receives an appropriate reward for their performance.
Nowadays, this coincides with internet marketing and methods such as content optimization for higher search engine rankings, content writing, use of social networks and emails, depending on how the affiliates will assess that they need to promote the product and service.
Nowadays there are special services where potential advertisers can get in touch with people or groups that would advertise them, and if you click here, you will see that it is all really easy and simple. You just need to find the right people who will accept your offer or the ones that find your budget enough to promote the product and reach the potential audience.
What is performance marketing?
As the name suggests, this is a set of paid activities, which aim to improve the performance of the company, ie to attract as many customers or users of services. The advertising company pays a certain amount to marketing agencies or certain advertising platforms to achieve certain results, which are the target for that campaign.
In addition, the agency or the platform, voluntarily or at the request of the advertiser, can hire people who will apply affiliate marketing, if it means that the targeted minimum results will be achieved in the overall performance.
As you can see, these two areas do not go without each other. However, it is not necessary to use an affiliate if it is estimated that there is no need when it comes to performance. In fact, it all depends on the strategy that will be applied and the purpose of the campaign.
Basic differences between these two areas
You could see some of the differences for yourself. Of course, when the advertised entity approaches another entity, ie affiliate, then certain conditions should be defined and visible results should be achieved, which can be measured. In that way, the agreement is realized.
The affiliate should follow the defined guidelines and therefore create a campaign, call for action (the good old CTA) and contribute as many of those actions as possible to be converted into sales. But when it comes to performance marketing, there are more working models.
For example, Pay Per Sales is when you pay only for the sales made as a result of the campaign. Pay Per Leads is when the interested consumer registers for the service or subscribes to a further campaign. Pay Per Download is when an application is installed as a direct result of the ad, while Pay Per Acquisition is when the client pays for each action taken thanks to the campaign.
Why are both approaches important in the strategy?
Today’s marketing offers so many options and variety that it is sometimes not really fair to miss some of the opportunities we have. In fact, as we have said, many of the differences between affiliate and performance marketing are already being erased and they are becoming interdependent.
In the first case, the focus is no longer just on the company and the advertiser. In fact, the affiliate service uses already well-known channels for advertising and promotion and can help achieve the company’s long-term strategic goals.
What is important is to know that no approach works overnight. However, performance marketing is faster and more efficient, while affiliate marketing takes up to several months to achieve the desired goal. Of course, the advertiser understands these things and the expectations are realistic.
There are other areas of promotion and advertising, and the boundaries that were set a few years ago are almost non-existent today. Advertising channels are already integrated into each other, so they can all enter the strategy as equals.
No approach should be underestimated. You can try and see how it all works, and only then decide whether to continue that way. However, it is good to know that the differences are exactly what separate these disciplines from each other and that there are still different approaches to achieving a certain goal.
All of this, however, requires proper analysis and definition of the target audience and their habits, so that you can find exactly the approach that will convert all those shares into a sale or order. That’s the goal of all campaigns.