Performance-Based Advertising

Technical Definition

Performance-Based Advertising is the paid advertising segment of Performance-Based Marketing, specifically targeting sales for brick and mortar retail environments. The compensation model is directly tied to the return on ad spend (ROAS), meaning advertisers are paid based on the effectiveness of their ads in driving in-store sales.

Why Does This Matter to You, the Retailer?

This model offers greater financial transparency and risk mitigation. You're not just paying for ads; you're paying for ads that work. This ensures that your advertising budget is used most effectively, targeting channels and strategies that lead to actual store visits and purchases.

Example In a Sentence

"With Performance-Based Advertising, we found that our Google Ads were driving more revenue for each dollar in ad spend, allowing us to lower ad budgets while keeping sales the same."