Performance marketing is a digital marketing strategy where advertisers pay for specific actions taken by consumers, such as clicks, leads, or sales. Unlike traditional advertising models, where payment is based on impressions or reach, performance marketing ensures that advertisers only pay when their desired outcome is achieved.

Pay-Per-Click (PPC): Advertisers pay for each click on their ads, commonly used in search engine marketing (SEM).
Pay-Per-Lead (PPL): Payment is based on the generation of leads, such as when a user fills out a contact form.
Pay-Per-Sale (PPS): Advertisers pay a commission for each sale generated through their ads, often used in affiliate marketing.
Cost-Per-Acquisition (CPA): Advertisers pay when a specific acquisition, such as a purchase or sign-up, is completed.