OBM In a Nutshell: What is Outcome-Based Marketing (OBM)?

If you’re not already part of the 60% of marketers who have embraced outcome-based marketing (OBM), then it’s time to move beyond mere views and clicks; it’s time to demand real outcomes. 

Let’s dive into what this transformative customer acquisition strategy is all about.

What is Outcome-Based Marketing (OBM)?

Outcome-based marketing (OBM) is a pay-for-results advertising strategy. Brands pay only when they achieve a specific outcome that matters to their business, such as acquiring a qualified customer, driving an app install, or making a sale. Campaigns are designed around these outcomes, giving marketers the flexibility to test new media channels and identify the best placements to convert interested consumers into engaged customers.  

With OBM, affiliates, publishers, influencers, and other partnerships take on the responsibility of driving customers to your brand. This means marketers no longer bear the financial risk. Partners only earn a commission when they deliver results, creating a powerful incentive for action and safeguarding your budget. 

Download Perform^[cb]’s C-Suite’s Guide to Outcome-Based Marketing today to dive deeper into the world of OBM.

Why Outcome-Based Marketing (OBM)?

Today’s successful marketers employ outcome-based marketing (OBM) strategies that outperform their competitors, leading to customer growth, high lifetime value, and a measurable return on ad spend. OBM offers several advantages over traditional marketing strategies:

• Focus on Actual Results: OBM is entirely performance-driven. Only pay for measurable outcomes, ensuring efficient budget allocation.
• Risk Reduction: Traditional marketing often involves upfront costs with no guaranteed results. OBM reduces risk as advertisers only pay for outcomes, minimizing wastage of ad spend.
• Optimized Spending: OBM ensures that marketing budgets are aligned solely towards measurable, successful outcomes, unlike traditional methods with less measurable connections to sales.
• Agility and Precision: OBM adapts quickly to real-time data, unlike traditional methods with longer response times to market changes.
• Customer-Centric Approach: OBM focuses on meaningful engagement and tangible value for customers over mere brand visibility.
• Enhanced Accountability: Clear outcomes lead to better transparency and more precise ROI measurement for marketing efforts.

Still not convinced? Check out these compelling stats:

• OBM’s customization potential increases the likelihood of conversion by 80%.
• OBM has the potential to outperform traditional reach-based marketing by over 50% in terms of return on ad spend (ROAS).
• 41% of marketers have witnessed enhanced outcomes, including revenue growth and improved performance, by incorporating AI into their campaigns.

Do Affiliate and Performance Marketing Differ From Outcome-Based Marketing (OBM)?

Outcome-based marketing (OBM) is an umbrella term that encompasses an array of traditional tactics: 

While OBM bears similarities to affiliate and performance marketing, it stands out in several key aspects.

Affiliate marketing involves marketers partnering with publishers on a commission basis. Payment occurs when a new user converts, like making a purchase or signing up. This model is often associated with deals and coupon or conversion partner sites.

Performance marketing refers primarily to platforms like Facebook and Google, where payment is dependent upon conversions or clicks.

Both affiliate and performance marketing share a success model that rewards driving incremental, high-quality customers. OBM, however, takes a different approach. With OBM, brands only pay for specific results, thus reducing risk. In contrast, affiliate and performance marketing consider a range of actions beyond outcomes and involve varied payment structures, attributions, and partner networks.

Transform to an Outcome-Based Strategy for Real Results

With outcome-based marketing (OBM), you have endless opportunities to uncover what works best for your brand’s customer acquisition goals. OBM presents a comprehensive methodology that empowers brands to not only drive tangible results but also build long-lasting customer relationships.

Eager to learn more? Perform^[cb]’s seasoned OBM experts have compiled an outline of the most important elements of an outcome-based strategy – access it here. Ready to test out the power of outcome-based campaigns? Connect with one of Perform^[cb]’s customer acquisition experts today.