Performance marketing is a type of advertising where businesses only pay for specific actions taken by potential customers, such as clicks, leads, or sales. This approach allows companies to track the effectiveness of their campaigns in real-time, ensuring that their marketing budget is spent efficiently. By focusing on measurable results, performance marketing helps businesses optimize their strategies and achieve better returns on investment. Common channels used in performance marketing include search engine marketing, social media advertising, and affiliate marketing. These platforms enable advertisers to reach targeted audiences and drive engagement, making it easier to convert potential customers into loyal buyers.