Performance marketing: How brands drive measurable growth

Performance marketing, a data-driven approach that optimises campaigns based on measurable audience actions, has emerged as a key strategy for brands, especially in response to shifting online shopping behaviours. Unlike traditional marketing, which emphasises brand awareness and long-term positioning, performance marketing focuses on immediate returns, cost-efficiency, and clear, quantifiable outcomes—vital for startup brands which are aiming for rapid, effective engagement.

At the recently concluded afaqs! Challenger Brands conference, industry leaders gathered for an insightful session on ‘Driving Growth through Performance Marketing.’ The discussion, moderated by Benita Chacko, assistant editor, afaqs!, with panellists including Amit Phutane, chief business officer at Neeman’s, Manik Singla, marketing head at upGrad; and Rajiv Dingra, founder and CEO of ReBid.

Speaking at the event, upGrad’s marketing head, Manik Singla, highlighted that the company allocates 50% of its budget to performance marketing, though this percentage is gradually decreasing year-on-year. "We aim to increase the share of repeat business and mid-funnel efforts," he says.

Meanwhile, Amit Phutane of Neeman’s detailed a dual-faceted approach, focusing on Meta platforms and marketplaces. For marketplaces, he emphasises the importance of strategic optimisation, particularly on platforms like Amazon, where effective use of Amazon Marketing Services (AMS) can yield a double-digit return on advertising spend (ROAS) with a single-digit advertising cost of sales (ACOS).

Rajiv Dingra of ReBid cautioned against a narrow, bottom-funnel focus, warning that it risks leading to diminishing returns. "There’s no true performance without a full-funnel approach," he says, stressing that a well-rounded strategy that includes top-of-funnel awareness is essential for sustained brand engagement.

Dhingra shares that they worked with retail clients Jack & Jones and Vero Moda, where an AI-based, data-driven strategy achieved a 41x ROAS. By creating audience cohorts of past high-value shoppers and targeting them through cost-effective channels such as email, SMS, and WhatsApp, ReBid maximised ROAS during a two-day sale.

In the BFSI sector, Dingra shares how his team lowered blended customer acquisition costs (CAC) by 26% over four months for a fintech client by combining YouTube content with Google’s Universal App Campaigns. "This reduction was significant for a fintech player, where cost efficiency is critical," he adds.

Selecting the right platform

Singla notes that platform choice depends on the brand category and target audience. “Traditionally, Google is high-intent, followed by Meta, which has a vast user reach. However, the choice depends on your category and target audience—it's not a one-size-fits-all approach,” he explains. For niche categories with smaller budgets, Singla advised LinkedIn for B2B audiences and Snapchat for younger demographics.

Phutane mentions the importance of an engaging, storytelling-driven website that reflects the brand's core values, warning that an overly sales-focused approach risks becoming price-centric. "To appeal to different customer segments, it’s essential to identify cohorts—those who seek deals, specific product types, or unique experiences," he adds.

Emerging trends

According to Dingra, AI-powered search is transforming performance marketing. He pointed to platforms like Perplexity.ai, founded by an Indian-origin entrepreneur, which offers AI-based search solutions poised to challenge traditional search engines. While Google has introduced ads on its AI overview, it currently lacks audience segmentation capabilities, presenting challenges in targeting specific demographics.

“The combination of data and AI will shape the future of marketing,” Dingra says. He foresees data-driven solutions extending even to non-direct response campaigns, such as video engagements, allowing brands to measure incremental gains—such as tracking YouTube campaigns that boost brand searches or lower CAC. “The future of marketing is increasingly performance-oriented, relying on trackable, data-driven approaches with AI layers to enhance campaign impact and ROI,” he highlights.