Performance marketing has completely changed the way companies advertise and sell their products. It has also impacted the way we measure the success of marketing campaigns.
Today, performance marketing campaigns allow you to measure everything from brand reach to conversion rates all in one single ad.
What is Performance Marketing?
Today, many advertisers and companies are still unsure about what performance marketing really represents. This is because it is a relatively new concept that encompasses all of the current marketing methods at once.
Performance marketing is a set of web marketing techniques (affiliation, PPC…) that measures the results of a campaign and allocates its performance to the different channels according to the results obtained (cross-media marketing).
With performance marketing, you go from payment per click or per impression to payment per result. The effectiveness of a campaign is not determined by statistical calculations, but by real data collected by the tracking system that is recording clicks, conversions, sales or subscriptions in real time.
Why performance marketing?
– It is the fastest growing segment in digital advertising today.
– According to studies, each dollar invested in performance marketing gives a ROI of 11 dollars.
– More than 93% of companies that use performance marketing are satisfied and would recommend it.
– Performance marketing opens up new possibilities for sales and leads in advertising.
– Subscription, qualified visit, sale or sign up: The advertiser can see in real time the exact cost of each action involved, which allows better control of the budget and optimize results.
– The possibility to use several online channels at the same time (cross data): e-mail marketing, social media advertising, display advertising, etc.
The different types of performance marketing
As far as the use of the term “Performance Marketing” is concerned, there are several areas of digital marketing that use it and each one differs slightly. Here is an overview of the key platforms which use performance marketing:
- Affiliate Marketing
Affiliate marketing is related to any type of marketing that is affiliated with the advertiser and paid after the desired action has taken place. This usually involves a partnership with coupons, loyalty programs, ratings and reward programs.
This is a form of paid media that, unlike display ads or banner ads, does not really look like an ad.
- Native Advertising
It is a form of paid digital media that, does not really look like an ad and tends to follow the natural form and function of the site on which it is placed.
- Sponsored content
Mainly used by influencers, bloggers and content sites, this type of performance marketing involves a post or article dedicated to the promotion of a brand and/or product in exchange for some form of compensation.
- Social media marketing
This type of performance marketing consists in using social media to gain traffic, notoriety, and brand awareness.
How to establish a good performance marketing strategy?
- Set clear and measurable objectives:
It is crucial to identify clear objectives from the beginning as well as key performance indicators that will serve as benchmarks. Especially, as your return on interest depends on them.
- Define the payment model:
For a performance marketing campaign, everything will depend on what constitutes as a conversion, so it is necessary to clearly define the payment model used. For example it could be:
- CPL (Cost per lead)
- CPA (Cost per share or cost per acquisition)
- CPC (Cost per click)
- Ensure you have optimized landing pages:
The conversion usually takes place on a landing page. To ensure maximum impact it is essential to create a good landing page. Responsive, optimized, with easy site navigation and user experience which will contribute to the success of your digital marketing campaign.
- Get help from an expert:
Performance marketing requires the use of advanced digital tools to help you achieve your goals. However, it is also essential to choose qualified digital specialists who know how to optimize these specific digital tools. For example, this could include the help of a conversion designer, an Adwords expert and a landing page conversion manager. All of these digital experts, ensure the real-time management of your lead generation campaigns.
- Monitoring:
Performance marketing strategies require real-time monitoring. If something is not working, it must be changed as soon as possible. Which is why monitoring performance marketing is the only way to achieve your goals.
- A transparent agency-advertiser relationship:
Transparent communication is the key to success!
So, are you interested in Performance Marketing to optimize your ROI? Are you looking for the latest digital innovation to improve your company’s performance?
EMINENCE, your digital expert, helps you set up the best digital strategy to get your business off the ground!