What is performance marketing?
Marketing is the backbone of any industry because this is how you advertise your products and reach out to people. The ultimate essence of marketing is to influence people and convert the viewers of your advertisements to potential clients or customers.
In conventional marketing, a marketer releases a marketing advertisement in the form of a slogan, poster, video, audio, or any other possible means of multimedia on various channels. The experts can approximate how many people might be seeing these ads, but they never have the true insights. Even worse is the situation when it comes to figuring out how many viewers the advertisement influenced and which advertisement channel affected them the most. Due to all this, it becomes very difficult for a marketer to plan further on the advertisement campaign because they do not know where exactly they have been wrong! All these drawbacks are overcome with the help of performance marketing.
Performance marketing is a marketing strategy when the advertiser pays only when a certain action is completed. This means that they are not paying just for the ad's display, but they are paying for its influence on the viewers. This will become clearer as you read on further.
Every ad that is displayed on the internet prompts its viewers to take a certain action. This action may be as simple as clicking on a link on the ad and redirecting to a website. It may even include things like subscribing to a particular newsletter, downloading an application, and so on.
This specific action is what is beneficial for the company that is paying the performance marketing professional.
Process of performance marketing:
The process of performance marketing is a multi-step approach that includes the following major steps:
1. Determination of the campaign goal
This is the primary concern for any performance marketing professional as well as the company. Since it is a more objective approach towards marketing, it is extremely crucial to be very e sure about what you expect from the campaign. If you are struggling with the campaign goal, the performance marketing professional may also help you determine that but being on the same page is extremely important.
As every individual is unique, so is every campaign, and so the performance marketing professionals come up with a unique strategy for everyone that approaches them. A good performance marketing, understand your goals and expectations and devices such kind of a plan which is best for you according to your budget and needs.
3. Choosing the target audience
Which performance marketing online, you can choose whom do you want to show your ad to by creating certain filters. If you have good clarity concerning the audience you want to target, it becomes very easy for a performance marketer to create and launch the campaign. This also ensures better leads and higher chances of them getting converted into potential clients and customers.
4. Choosing the right digital channel
Digital channels are those platforms on which your advertisement is displayed. Although even one digital channel can run a campaign, this is mostly done only for experimental purposes or on very specific projects. In a more practical situation, more than one digital channel is used to run the ads. You can run your ads on Facebook, Instagram, Linked In, Google, or any other website.
5. Creation and launching of the campaign
Once the technical part is sorted, this is more of a creative part. This step is where it is determined how the advertisement will appear to its viewers in terms of its visual appeal, slogans, and anything else that may be required to capture the viewer's attention. Finally, once all this is done, the campaign is launched on the decided digital channels!
6. Tracing the performance and analysis
As soon as the advertisement is launched on the channels, you start receiving detailed insights about its interaction with the people. These insights include everything from the number of people it has reached, the number of people who have interacted with it, and the number of desired actions completed. Thus, instead of waiting for the end of the campaign to measure its success, an expert can start analyzing it as soon as it is released.
It isn't easy to launch a perfect campaign in the first go. There are always some drawbacks which can be worked upon are the market requirements keep changing which need you to adapt with the changing times. With the detailed analysis provided by performance marketing insights, you can easily figure out where the campaign was lacking and work on that particular area to enhance the general productivity.
The tools to measure performance marketing:
1. Cost per impression (CPM): This is the kind of scheme where the advertiser pays the performance marketer for every impression that the advertisement makes on the viewer
2. Cost per click (CPC): In this case, the growth of a campaign is determined by the number of times a viewer clicks upon the advertisement, and that becomes the basis for the payment
3. Cost per sale (CPS): According to the scheme, the company pays the performance marketing professional a certain commission for every sale that takes place through the published advertisement
4. Cost per lead (CPL): When leads are generated using certain registrations, or by any means by which the company can get the potential client data, that is when the advertiser is paid when it comes to the CPL system of performance marketing
5. Cost per acquisition (CPA): The client defines a certain action according to its needs, and every time that action is completed through the means of the ad, they have to pay the performance marketing professional
All these tools also become the basis for analyzing the insights and checking the growth and success of the campaign.
Benefits of performance marketing:
1. In the case of performance marketing, you have the option to choose from many digital channels so that you can reach a large audience at the same time with a single campaign which ensures wider coverage.
2. Performance marketing is a comparatively low-risk marketing strategy as you do not blindly invest in advertisements. Instead, you only pay the price for the progress made, which ensures that your money does not go to waste.
3. With the deep insights provided by performance marketing software, you get to the root of the problem and rectify it better.
4. The analysis provided by performance marketing is quicker, and insights start coming in at a very early stage which makes it easier to make rectifications and track progress
5. It is a more goal-oriented objective approach towards marketing that provides greater transparency in your business advertising.
Performance marketing has revolutionized the way of advertising by making it very objective and scientific. This has benefitted both the firms and the professional advertisers for their mutual growth. So, if you are looking for a low-risk, high productivity tactic for marketing- performance marketing is the right choice!