What Is Digital Marketing?

Digital marketing is nothing big or fancy. It just means telling people about your shop or product on the internet. Long ago, people used posters, radio, and newspapers. Now, most people sit with their phones, so brands go there.

If you see an ad pop up while watching a cricket video, that’s digital marketing. If a shop sends you an email about a discount, that’s also digital marketing. Even when you search “best shoes for running” and a brand shows up on top, that too is digital marketing.

It is used because it is fast and doesn’t cost too much. A small bakery can put a photo of cakes on Instagram, and hundreds of people nearby can see it in one day. That is easier than waiting for someone to walk in. And the shop owner can even check who liked, shared, or ordered.

Definition and Core Components

If you ask, “What comes under digital marketing?” the answer is simple. Anything that helps a business show itself online comes under it. You can think of it like a school. There are many subjects: English, Math, Science, etc. Each subject is important in its own way, but together they form your learning.

In digital marketing services, these subjects are called “components.” Some of the big ones are:

• Making a website show up on Google searches.
• Sharing content like blogs, videos, or podcasts.
• Talking to people on social media like Instagram, Facebook, or LinkedIn.
• Sending helpful or promotional emails to customers.

Some parts are free. For example, if you write good blogs and your website ranks on top of Google, you don’t pay money directly. This is called organic reach. Some parts need money. For example, if you run ads on Facebook or Google, you pay for clicks. This is called paid reach.

Both are important because only paid marketing cannot build trust, and only free methods may take too long.

Examples of Digital Marketing Channels

To understand better, let’s look at the main channels.

SEO

‍SEO means search engine optimisation. First, you can make your brand appear on Google when someone searches “trendy shirts near me.” That’s SEO, where the website is made Google-friendly.

Social Media Marketing

‍Second, you can post outfit pictures or reels on Instagram. This is social media marketing. If the content is fun, people start sharing it, and suddenly, more people know about the brand.

Content Marketing

‍Third, you can write a short blog like “How to Style Shirts for College,” which helps them show up on Google searches while also giving readers useful tips. That’s content marketing.

Email Marketing

Fourth, if someone signs up for your newsletter, you can send weekly emails with offers. That’s email marketing, and it helps the brand keep in touch with people who have already shown interest.

Digital marketing and advertising go hand in hand. Advertising pushes people to buy, but marketing also focuses on building relationships.

What Is Performance Marketing?

Performance marketing is a way of running ads where you only pay when something happens. It could be a click, a sign-up, or a sale. Instead of paying just to show your ad, you spend money only if it works.

Brands like this method because it feels safe. They can see right away if the money is bringing results. If an ad is not performing, they can stop it and try something else.

It’s mostly used on platforms like Google, Facebook, and Instagram, where tracking is easy. Every click, like, or purchase gets counted. That’s why it’s called “performance”, because you pay for performance, not just presence.

So, performance marketing is simple: no guesswork, no waste. Just clear actions that show what’s working and what’s not.

Definition and How It Works

What is performance marketing?

Performance marketing is like saying, “I will only pay if you do something.” Brands don’t waste money. They pay when people click, sign up, or buy.

It works step by step. First, a brand decides the goal. Maybe they want more people to buy shoes. Then, they put ads on Google, Facebook, or Instagram. Every time someone clicks the ad or buys, the brand pays a small amount.

The good thing is, you can see the numbers fast. If the ad is working, you add more money. If it is not working, you stop it. Simple.

That’s why many shops and companies like it. They know where their money goes. They only pay when something real happens.

Key Channels in Performance Marketing

Performance marketing uses many of the same channels as digital marketing, but in a very focused way. Let’s look at some examples.

One is PPC (Pay-Per-Click). Google ads are a great example. A shoe store can put an ad saying “Buy sports shoes online.” But they only pay when someone actually clicks the ad.

Another one is Affiliate Marketing. You must have seen YouTubers saying, “Use my link to buy this product.” If you buy through that link, the YouTuber gets a small commission. That’s performance marketing, too.

Then comes Influencer Marketing. A small skincare brand can pay an influencer not just for making a post but for how many people actually buy through their code. For example, “Use code RIA20 for a discount.” Each time someone uses that code, the brand can track it.

And then there’s Retargeting or Display Ads. Have you noticed how, after you check a product online, its ad follows you everywhere? That’s retargeting. Brands do this to remind you, “Hey, you forgot to buy me.” And again, they pay when you click or buy.

Performance marketing vs Digital marketing: Key Differences

Okay, so now we’ve talked about digital marketing and performance marketing. But how are they really different? Let’s compare them.

Imagine you are playing cricket. Digital marketing is like practising every day, showing up, training, and slowly building your skills. Performance marketing is like when the coach says, “I’ll only clap when you actually hit a four or a six.” One is about being present and growing; the other is only about the actual result.

Goals

Think of a cricket team. Some players focus on building the innings slowly, making sure the team lasts till the end. That’s like digital marketing, it builds brand trust and visibility for the long run. Performance marketing is like the finisher who comes in to hit sixes quickly. The aim here is fast runs, fast results.

Cost and ROI

Imagine you have ₹10,000. If you put it in a savings plan, you don’t see big money instantly, but it grows steadily. That’s how digital marketing works. Now, think of buying 100 ice creams to sell at a fair, you know exactly how much you earn from each one you sell. That’s performance marketing. You pay only when you get results.

Tracking & Attribution

In school, some teachers check homework every day, page by page. That’s like performance marketing, where every click or lead is tracked. Other teachers just give one big test at the end of the month. That’s digital marketing, where results show up after a longer time and are not easy to trace back to one action.

Long-Term vs Short-Term Impact

Digital marketing is like planting a mango tree. It takes time, care, and patience, but once it grows, it gives fruit for years. Performance marketing is more like buying mangoes from the market. You get them right away, but once you stop paying, there’s nothing left.

Metrics and KPIs

In digital marketing, people often look at likes, followers, reach, and website traffic. It shows how popular the brand is becoming. In performance marketing, the numbers are stricter: sales made, cost per click, cost per lead, and return on ad spend. One cares about how many people know you, the other cares about how many people buy from you.

Both are useful, but they work differently. One is like building a reputation, and the other is like making a sale. And the smartest brands? They often use both together.

Which One Should You Choose?

When to Choose Digital Marketing

Digital marketing makes sense when you want to reach people where they spend most of their time, on phones, laptops, and social media. It helps you connect with customers in real time and share updates instantly.

If you run a business that needs a wider audience, digital marketing is the right choice. A small local store can only reach nearby people, but online ads and posts can reach across cities and even countries.

It also works well when your customers are young and active online. They search, scroll, and shop on the internet. Being present where they are increases your chances of being noticed.

Another reason to choose digital marketing is cost. Compared to traditional ads like TV or newspapers, online campaigns can be cheaper. You can start small, test what works, and then spend more on the winning idea.

It is also the best choice when you need clear data. Every click, view, and action can be tracked. That means you always know what is working and what needs to change.

In short, digital marketing and advertising are the right pick when you want speed, reach, and measurable impact without spending too much.

When Performance Marketing Makes Sense

Performance marketing sperformance marketing channelservices make sense when you need quick and clear results. It is useful when every rupee you spend must show what it brings back. You can track clicks, leads, or sales and know if the campaign worked or not.

It works well for new businesses that want to test the market. If you have just launched a product, you don’t want to wait months to see if people like it. A small campaign can show you what customers respond to.

It also makes sense for seasonal sales. Think about times like festivals, holiday shopping, or special discounts. In these moments, you want people to act immediately. Performance ads can push buyers to make quick decisions.

If your goal is to reach the right people with less budget, performance marketing is also a good choice. You can target by age, interest, or location. This way, money is not wasted on people who will never buy.

It is also best for companies that want to measure every step. With performance marketing, you know which ad, keyword, or platform gave results. 

So what is performance marketing? Whenever the goal is fast response, clear tracking, and controlled budget, performance marketing makes complete sense.

But remember, once you stop paying, the results stop too. Just like when you stop washing the car, no more pocket money comes in.

Can You Combine Both?

Yes, you can! In fact, using brand marketing and performance marketing together is often the smartest choice. Brand marketing is like planting a tree. It grows slowly, but one day it gives lots of shade. Performance marketing is like watering that tree every day so it grows faster.

When you mix both, you get balance. The brand side makes people trust you. The performance side brings sales quickly. For example, a company can run ads to sell shoes today while also making a nice video that shows their story and values.

It works better when they walk side by side. One brings short-term results, the other builds long-term memory. If you only use one, something feels missing. Together, they make sure people know you, like you, and also buy from you.

So yes, you can combine both, and that’s where the real magic happens.

Case Studies: How Brands Use Both Approaches

So.. performance marketing vs brand marketing? Nope. Many real brands in India and abroad use both in smart ways. Let’s look at some examples.

1. The Souled Store
This clothing brand in India became popular with quirky T-shirts and pop-culture prints. For brand marketing, they share fun posts, memes, and behind-the-scenes stories that connect with young people. It makes buyers feel part of a cool community. At the same time, they run performance ads on Instagram and Google with “Buy 2, Get 1 Free” or “Flat 20% Off” messages. The brand side builds love, the ads bring sales. Together, they grew fast.

2. Chumbak
Chumbak started as a home décor and accessories brand. Their brand marketing focuses on bright, cheerful designs that stand out. They use Instagram stories, visual campaigns, and store displays to create an identity full of colours and joy. But they also invest heavily in targeted ads, especially during festivals and sales. For example, running Facebook ads for “Festive Sale – 30% Off.” The brand side gives them recognition, while the ad side pushes quick sales.

3. Lenskart
Lenskart is an eyewear brand that shows how both sides can work together. For brand marketing, they focus on customer trust, free eye check-ups, ads about better vision, and even celebrity ambassadors. This makes them reliable in the long run. On the other side, their website and app push performance marketing: offers like “Buy 1 Get 1 Free” or “Flat 60% Off on Frames.” Many people first see a Lenskart ad, but they buy only because they also trust the brand.

4. WOW Skin Science
This personal care brand became famous with shampoos and skincare products. Their brand marketing comes from storytelling about natural ingredients and cruelty-free values. People trust them because of that story. But they don’t stop there. WOW uses Amazon ads, Google ads, and influencer coupons like “WOW20” for discounts. This mix gives them both loyalty and fast conversions.

These brands prove one simple thing. If you only do brand marketing, people may like you, but not buy. If you only do performance marketing, people may buy once but forget you later. 

Benefits and Limitations of Each Approach

Brand Marketing – Pros

Brand marketing is like giving your shop or product a face everyone remembers. One big benefit is memory. Once people learn your name, they keep it in their heads for a long time. Like how “Fevicol” means glue in many homes. They don’t say “adhesive,” they say “Fevicol.” That memory power comes only from brand work.

Trust is another gift of brand marketing. When you hear the name “Amul,” you don’t think twice before buying milk or butter. You trust it. Even if another packet is cheaper, people pick Amul because they feel safe. That trust keeps sales steady.

Brand marketing also spreads without effort. If people love your brand, they talk about it at home or with friends. “This tea tastes the best, buy this one,” one neighbour tells another. That word-of-mouth is free but powerful. Ads cannot always match that.

Another good side is survival. In bad times, strong brands still sell. During the lockdown, many unknown brands got ignored. But people still searched for “Surf Excel” or “Tata Salt.” A strong brand is like a life jacket in a storm.

And don’t forget profit. Brands with a name can charge a little more. You pay ₹5 extra for Coca-Cola when a local cola is cheaper, just because the name feels safe. That extra margin is the reward for years of brand work.

Brand Marketing – Cons

But brand marketing is not all good. It asks for money all the time. Big billboards, TV ads, and cricket sponsorships are not cheap. Even designing a fancy logo or running long campaigns burns pocket. For a small business, this becomes very heavy.

Another problem is no easy measurement. With ads, you see clicks; with branding, you see only hope. You can’t say, “I spent 1 lakh, I got 10 lakh sales.” It is more like planting a seed and waiting. Investors and owners don’t always like that slow, unclear return.

Time is another issue. A brand does not grow in a week. It needs years of the same message, same quality, same trust. If you want sales tomorrow, branding won’t save you.

And sometimes, the story and product don’t match. A brand may shout “pure,” “fresh,” “honest,” but if the taste or quality is bad, people feel cheated. Then all the ads and efforts break down.

Performance Marketing – Pros

What is performance marketing in digital marketing?

Performance marketing is the opposite. It’s fast, sharp, and easy to measure. The biggest pro is speed. You run an ad in the morning, and by night, you may see orders. For a new online shop or app, that feels like a lifeline.

Control is another plus. If an ad is not working, you can stop it in seconds. If one word brings clicks, you can increase spend on it. No money wasted for months.

Testing is also a gift here. You can put two pictures of the same product and see which one people click more. This gives you clear answers about what people like.

And here, even small shops can fight big names. A smart digital ad for a small bakery in Delhi can appear on Google above a bigger chain if the campaign is done right. That gives hope to small players.

Performance Marketing – Cons

Still, performance marketing is not a magic stick. It feels like paying rent. The moment you stop, the sales stop too. No ads, no orders. Unlike branding, nothing remains in people’s memory.

Costs also rise fast. Today your ad click is ₹5, tomorrow it may be ₹25 because more people are bidding. Competition makes it expensive, and you can’t control that.

Another weak point is loyalty. Many people click only for discounts or offers. They buy once and disappear. No bond with your name is created. You may spend again to bring them back.

And finally, ads can feel like noise. People see the same type of ads on Instagram, YouTube, and websites. They get tired, skip, or block them. Then your money goes to waste with no return.