Performance marketing refers to a form of digital marketing in which brands only pay marketing service providers after their business objectives have been met or when specific actions have been taken, such as a click, sale, or lead. In other words, it is performance-based marketing.
Performance Marketing Channels
Increase Your Leads, Signups and Sales
If you’ve been online, you’ve probably seen plenty of display ads recently. These ads appear on the side of your Facebook newsfeed, or at the top or bottom of that news web page you just visited. Though display ads are slowly losing their appeal due to the increasing popularity of ad blockers and what experts call banner blindness, many companies are still finding success with display ads that utilize interactive content, videos, and engaging graphic design.
Native advertising takes advantage of the natural appearance of a web page or site to promote sponsored content. For example, sponsored videos might appear in the “Watch Next” section of a YouTube page.
Content marketing is all about educating your audience. According to OmniVirt, it also costs 62 percent less than outbound marketing, and generates three times as many leads.
Facebook has the most extensive list of services for performance marketers, but other platforms like LinkedIn, Instagram, and Twitter also offer many opportunities to reach new customers.
Most online research is done via search engines, and that means having a site that is optimized for search engine marketing (SEM) is essential.
How Performance Marketing Works
Increase Your Leads, Signups and Sales
Advertisers pay based on the number of times their ad is clicked on. This is a good way to drive traffic to your site.
Impressions are essentially views of your ad. With CPM, you pay for every thousand views (so if 25,000 people view your ad, for example, you’d pay your base rate times 25).
With CPS, you only pay when you make a sale that was driven by an ad. This system is also commonly used in affiliate marketing.
Much like cost per sale, with CPL you pay when someone signs up for something, like an email newsletter or webinar. CPL generates leads, so you can follow up with customers and drive sales.
Cost per acquisition is similar to CPL and CPS but is more general. With this structure, advertisers pay when consumers complete a specific action
Benefits of Performance Marketing
- Ease of ROI measurement
- Conversion-based goals
- Greater optimization
- Opportunity costs are eliminated
What we Do
Increase Your Leads, Signups and Sales
Establish your campaign goal
Before you can measure the success of any campaign, it’s important to establish your campaign goals. Whether generating brand awareness or selling products, setting goals prior to launch is the very basis of performance marketing.
Choose your digital channel(s)
In performance marketing, it is wise to diversify the channels you use, rather than focusing exclusively on one channel. This helps spread campaign exposure and reach, broadening the chances for success.
Create and launch the campaign
A lot of the work of performance marketing goes into creating campaigns – identifying the target audience, understanding their pain points and desires, and crafting ads and messaging to address their needs and grab their attention.
Measure and optimize your campaign
The real work kicks in post-launch. Performance campaigns begin to generate data the moment they are up and running. It’s up to the marketer to optimize individual campaigns for performance, across all channels in use.
Handle potential pitfalls
Like with any marketing campaign, there are some potential challenges and pitfalls that can come with performance marketing.
Real time reports
Keep tabs on how your campaigns are performing. Dig deeper into insights to make smart decisions for future campaigns.
