Updated CTV Trends Report: Get the latest on viewership, ads & strategy

Performance Marketing

What is Performance Marketing?

Performance marketing is a digital advertising strategy where advertisers only pay when a specific, measurable action occurs — such as a click, install, video view, lead, or purchase. Unlike traditional advertising models that charge for impressions or reach, performance marketing is outcome-based, offering greater transparency and efficiency.

This results-driven approach has become a cornerstone of modern digital advertising. It empowers marketers to optimize campaigns in real time, target the right audiences, and track clear return on investment (ROI) and return on ad spend (ROAS). Because every dollar is tied to performance, it minimizes waste and maximizes the impact of marketing budgets.

Performance marketing spans a range of digital channels, including search, social, native, and increasingly, connected TV (CTV), where innovations in targeting and attribution are making streaming a viable platform for performance-focused campaigns.

How does performance marketing work in streaming TV?

As connected TV becomes a primary viewing platform for millions, advertisers are applying performance marketing tactics to the TV screen. Advanced CTV platforms now offer detailed targeting, real-time measurement, and attribution capabilities that mirror those found in mobile or web-based campaigns.

Advertisers can run campaigns designed to drive specific viewer actions—like app downloads, subscription sign-ups, or completed video views — and directly attribute those outcomes back to ad exposures. This level of granularity is a significant departure from the broad, brand-focused strategies traditionally associated with television advertising.

In the streaming ecosystem, performance marketing offers advertisers the ability to:

  • Serve highly targeted ads to defined audience segments based on demographics, behavior, and content preferences.
  • Track measurable outcomes, from impressions and engagement rates to actual conversions like installs or purchases.
  • Optimize in real-time through A/B testing and dynamic creative strategies.
  • Attribute viewer actions across devices, providing a complete picture of campaign performance.

Why is performance marketing important for advertisers?

As media consumption shifts to streaming, advertisers need tools that offer both scale and accountability. Performance marketing provides a direct line between media spend and business outcomes, helping brands make data-informed decisions and justify their investment.

The pay-for-performance model also supports cost-effective growth, especially for advertisers focused on customer acquisition, user engagement, or monetizing direct response campaigns. Whether the goal is to drive app installs, grow subscriptions, or boost e-commerce conversions, performance marketing delivers precision and control that brand-first advertising often lacks.

How does performance marketing benefit publishers and streamers?

Performance marketing opens up new monetization opportunities for publishers and streaming platforms. By enabling campaigns that are optimized for measurable results, content owners can attract performance-minded advertisers who are willing to spend more for targeted, high-converting inventory.

Additionally, with access to detailed analytics and transparent reporting, publishers can better understand viewer behavior, fine-tune content strategies, and demonstrate the effectiveness of their ad inventory to buyers.

As more advertisers demand outcome-based solutions, offering performance marketing capabilities becomes a strategic advantage for streamers looking to grow revenue and build lasting advertiser relationships.

What’s next for performance marketing in streaming?

The future of performance marketing lies in its convergence with premium video environments. As streaming platforms become more sophisticated in their data capabilities, the line between brand marketing and performance marketing continues to blur. This shift is enabling advertisers to achieve both reach and measurable outcomes — on the same platform.

Connected TV is rapidly becoming a high-performing, scalable channel for performance campaigns. As the technology matures, advertisers, publishers, and platforms alike are rethinking what’s possible in streaming TV — driving a new era of data-informed, result-driven media buying.

Get news and updates from Wurl