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Performance-Based Marketing, in the context of brick and mortar retailers, is a marketing strategy where compensation is determined by the measurable return on ad spend (ROAS). The marketer or agency is paid based on the actual sales revenue generated from the marketing activities.
Why Does This Matter to You, the Retailer?
This approach aligns the goals of the marketer directly with yours. Instead of upfront costs or fixed fees, you're investing in tangible results. Every dollar spent on marketing is accountable, ensuring that your budget yields the highest possible sales outcomes.
Example In a Sentence
"By adopting Performance-Based Marketing, we've shifted our budget to campaigns that truly resonate with our customers, ensuring that we only pay for actual results in store sales."