Pay for performance advertising
Pay for performance advertising (P4P) is a term used in Internet marketing to define a pricing model whereby a marketing or advertising agency will receive a payment or bonus from an advertiser for 'performance'. This may be in the form of each new lead or new customer obtained for the advertiser through the agency's online marketing efforts or some other 'performance' metric the agency and client agree upon before beginning. Some prefer to limit the definition and scope of the potential work to be achieved - as in where the agency creates advertising campaigns and promotions to convert the maximum number of new leads or customers and gets paid for its work only when a new lead or a new customer is passed on to the advertiser. But this is not always a viable performance metric when the agency cannot fully control all aspects of the customer acquisition and conversion process. Advertising with the purpose of generating a lead (which may be defined in a variety of ways), may not always result in a customer because there might be a number of steps after response to an ad and between first contact and final sale. P4P advertising became popular with