What is performance marketing?
Definition: Performance marketing is paid advertising that is planned, run and judged by measurable results such as sales, leads or sign-ups, not by impressions or reach.
Performance marketing is advertising where every rupee is tied to a measured result: an order, a lead or a sign-up. pSkyro Labs runs it for D2C brands on Meta and Google, tracks each sale back to a campaign, and charges 5% of the profit the campaigns make.
How does performance marketing work?
You set a goal that can be counted, such as purchases from a store. Tracking (the Meta Pixel, conversion events, GA4 and UTM links) records what each ad produces. The ads run, the numbers come in, and budget moves to the campaigns and creatives that return more than they cost.
That loop is the difference from brand advertising, where reach and recall matter and sales are hard to attribute. In performance marketing, the report that matters is cost per purchase and ROAS, not impressions.
Which channels count as performance marketing?
Any paid channel where results can be tracked. For D2C brands that mostly means Meta ads (Facebook and Instagram) and Google ads. At pSkyro Labs the work covers Meta ads (Advantage+, catalogue, reels and dynamic retargeting), Google ads for high-intent retargeting, creator and UGC partnership ads, creative testing about every two weeks, tracking and landing pages.
How is it different from other pricing models?
Agencies often charge a monthly retainer or a percentage of ad spend, so they earn the same whether your ads work or not. Performance marketing can also be priced on results. Our fee is 5% of the profit the campaigns make, with no profit meaning no fee, and ad budget is paid separately to the platforms. The pay-for-performance vs retainer comparison shows the trade-offs.
When does performance marketing not fit?
It needs sales that can be tracked to a click. If most of your sales close offline or weeks later, or your store and tracking are not set up yet, fix that first.
A real example: Novo Shoes
In April 2026 (1–30 April, Meta Ads Manager), pSkyro Labs ran retargeting-led Meta campaigns for the footwear brand Novo Shoes. US$15,939.54 of ad spend produced US$110,518.11 of purchase value across 1,234 purchases, a 6.93× average purchase ROAS. The best campaign, dynamic retargeting, returned 13.96×. Purchase value is Meta-attributed.
Questions people ask.
What is performance marketing in simple words?
It is paid advertising judged by results you can count: sales, leads or sign-ups. If an ad does not produce them, it is changed or stopped.
What is the difference between performance marketing and digital marketing?
Digital marketing is the wider field and includes organic content, email and brand work. Performance marketing is the paid part that is measured and optimised against results.
How does pSkyro Labs charge for performance marketing?
5% of the profit the campaigns make (sales × profit margin, minus the ad budget). No profit, no fee. Ad budget is separate and paid to the platforms.
Which metrics matter most?
Purchases, cost per purchase and ROAS for stores. Compare ROAS against your break-even ROAS, which depends on your margin.
Does performance marketing work for every business?
No. It suits businesses that sell online and can track orders back to ads. It fits poorly when sales close offline or tracking is missing.
Want this done for your brand?
Book a free 30-minute strategy call. We'll tell you honestly what makes sense for your business.