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Types of Performance Marketing

Search, social, display, affiliate and more. The main performance channels explained — how each works, and when to use which.

By the Digital Hangover team · Updated July 2026 · 6 min read
Quick answer: The main types of performance marketing are paid search, paid social, display and native ads, affiliate marketing, and remarketing. Each is measurable and paid on results — clicks, leads or sales. Paid search captures demand, paid social creates it, affiliate scales on commission, and remarketing recovers lost visitors. Most brands blend a few.

New to the concept? Start with what is performance marketing, then use this to pick your channels.

The main types of performance marketing

TypeWhat it isBest for
Paid searchAds on Google & Bing for active searchesHigh-intent, ready-to-buy demand
Paid socialAds on Meta, LinkedIn, etc.Discovery, awareness, targeting
Display & nativeBanner and in-feed ads across sitesReach & brand recall
AffiliateCommission to partners per resultLow-risk, results-only scaling
RemarketingAds to people who already engagedRecovering lost visitors & carts

Paid search: capturing demand

Search ads put you in front of people actively looking for what you sell. Intent is high, so conversion rates tend to be strong — but competitive keywords can be costly. It's the go-to for capturing ready-to-buy demand.

Paid social: creating demand

Social ads interrupt people based on interests and behaviour, so they're ideal for discovery and awareness. Weighing Google against Meta specifically? See our Google Ads vs Meta Ads guide.

Display, affiliate and remarketing

  • Display & native keep your brand visible across the web — better for recall than instant conversions.
  • Affiliate pays partners only when they deliver a result, making it low-risk if tracked well.
  • Remarketing re-engages people who already visited or added to cart — usually some of the cheapest conversions you'll get.

Which types should you use?

There's no single best channel — it depends on your audience, margins and goals. Most effective programmes blend a few and shift budget toward whatever delivers the best cost per result. For budgets, see our PPC cost in India guide, and if you're comparing paid with organic, our SEO vs PPC guide helps.

Key takeaways: Performance marketing spans paid search, paid social, display, affiliate and remarketing — all measurable, all paid on results. Search captures demand, social creates it, remarketing recovers it. Blend channels, track cost per result, and move budget to the winners.

Frequently asked questions

What are the main types of performance marketing?

The main types are paid search (search ads), paid social (ads on platforms like Meta and LinkedIn), display and native advertising, affiliate marketing, and remarketing. Each is measurable and paid on results such as clicks, leads or sales. Most brands combine a few based on their audience and goals.

What is the difference between paid search and paid social?

Paid search captures existing demand — you reach people actively searching for what you offer, so intent is high. Paid social creates demand — you interrupt people with targeted ads based on their interests and behaviour. Search is great for ready-to-buy intent; social is great for awareness and discovery.

Is affiliate marketing part of performance marketing?

Yes. Affiliate marketing is a classic performance channel — you pay partners a commission only when they drive a sale or lead. Because you pay strictly on results, it carries low upfront risk, though it needs good tracking and the right partners to work well.

Which type of performance marketing is best?

There is no single best type — it depends on your audience, goals and margins. Paid search suits high-intent demand, paid social suits discovery and retargeting, affiliate suits low-risk scaling. Most effective programmes blend channels and shift budget toward whatever delivers the best cost per result.

How do I measure performance marketing?

Measure by cost per result and return, not vanity metrics — cost per click, cost per lead, cost per acquisition, and return on ad spend. Track conversions properly with analytics and pixels so you know which channel and campaign actually drove each sale, then move budget to the winners.

Want paid that pays back?

Performance marketing, managed to ROAS

Search, social, display and remarketing — run together with clean tracking and budget that follows the results.

Explore performance marketing →