Are you hearing the term ‘performance marketing’ for the first time?
And you have no clue what is it?
Yeah! I feel you.
But I did a lot of research and digging on this topic and want to share it with you.
Table of content:
1. What is performance marketing?
2. Performance Marketing Channels.
3. Advantages of performance marketing.
4. What is growth performance marketing?
5. How performance marketing is different from digital marketing?
6. How to make it work for you?
In simple words, performance marketing is a kind, where the client pays to the company after getting the desired result from a certain action.
Example: E-mail marketing, lead generation, sales, clicks, you can get as many services as you want, but you will pay for those services only after getting the data from those actions.
‘performance’ marketing as the term speaks for itself it is measured and valued based on its performance.
There are many channels where you can do performance marketing, totally depends on the nature of your business and its objective. Once you get a clear idea of the objective, it will become easier for you to pick the channel.
But following are the most common channels:
1· Google: Google’s algorithm works best literally in every area of marketing. Google ads give you the option of target CPA (CPA- cost per action), where you can use your bidding skills as many times as you want.
2· Facebook: Facebook pixels works like a magic when it comes to tracking. And what could be a better platform for an action-based campaign?
3· Affiliate Programs: These programs are designed only for performance-based. They purely perform based on action taken.
Example: You saw a link while reading an article, you clicked on it and then the link took you to a book store (books relevant to that article), now if you buy a book from that site during a certain period of time, they will get a little percentage of that amount as a commission and if you don’t buy anything at all or after a period of time, they will not get anything.
4· Taboola: It has a smart bid feature same as Facebook and Google, which makes it very popular with performance marketers.
5.Advantages of performance marketing
The following points will answer your question and doubts of why one should consider this kind of marketing:
· The low risk involved: As it works purely based on performance, risks of investment get very less for obvious reasons. If you get the result, you will pay and if not, you won’t, simple.
6· You can monitor performance: This is the best part of this kind of marketing, it is measurable. You can easily track the actions taken and the results received. And all channels have the best technology that is meant for performance marketing.
7· Better planning: The platforms give you all kinds of options that will give you room for better planning and to make strategies that would work in the best interest of your objective.
It is not what you are thinking, at all. This term is not even a bit closer to ‘performance marketing’.
It is a kind of marketing, and marketing, where you do the A/B testing with your strategies.
A/B testing is when you do little changes to your marketing strategies.
Example: Making few changes in the demographics, or in your e-mail list, your time of posting or going live, etc. All these minor changes in your marketing strategies are called ‘growth performance marketing’. And it has nothing to do with the term ‘performance marketing’.
Digital Marketing is a very wide term as compared to performance marketing. Both of them their own set of pros and cons.
Like performance, marketing is limited to those channels which can track the actions taken, whereas, digital marketing is a whole campaign that includes every platform through which you can advertise.
Digital marketing is a whole strategy that can include making videos to running ad campaigns, but they don’t give you the guaranty of the results but on the other hand, performance marketing only works on the strategies where you can track the actions and monitor the results.
PS: The only difference between these two terms is that ‘digital marketing is a very vast term and ‘performance marketing’ is part of it.
I have already bragged so much about ‘performance marketing’, that you must be thinking of giving it a shot.
‘But how?’ If that is what in your mind, then let me help you out with that.
· You need to pick a clear objective. Example: more sales, getting leads for e-mail marketing, brand awareness, website traffic, etc.
· Once you get a clear hold on your objective it becomes very simple to decide on what basis the performance would be decided.
· Make a structured plan, you don’t want to hit on the action directly. You need to give it a structure, like a sale funnel. Example: Awareness, engagement, conversion, sales.
· Once you are done picking up an objective and giving it a structure, pick a channel.
· Though there are several channels where you can measure the performance, Facebook offers you the largest platform for objectives.
· Now you have already done with necessary steps, it is time to go live.
· Going live should not stop you there, you need to keep doing A/B testing for better performance and results.
That is how you do performance marketing.
Conclusion: Performance marketing is the best option when you are seeking results-based objectives. It is hard to give your trust to a new agency to handle your business, that’s where performance marketing takes the charge. And it works in the interest of both parties.
It is advisable to go with this kind of marketing because it is totally measurable and you will pay only for a successful conversion rate or performance.
From CPC to ROI, you can measure it all. There are separate platforms, where you can measure the ROI and all sorts of actions. Just keep your data and campaign optimized.
This marketing is only ideal when your objective requires some kind of result that can be monitored or measured.
With all these advantages of performance marketing, you still can not ignore the fact that your business will need digital marketing as well.
PS: We excel in this kind of marketing and totally understand your concerns and fears. Just reach out to us and we will give a free consultation call and discuss the ideas and objectives of your campaign you have in your mind and how can you achieve it.