In recent year’s rapid digitization, owing firstly to rapid advances in internet technology and the worldwide pandemic, has re-shaped our choices going- forward.
Now it has become more important than ever to find better ways to reach the right audience in order to sustain the long-term growth of any business.
In this context, a new and rising vertical known as performance marketing is gaining greater traction in generating marketing revenue. Brands investing in performance marketing reap better benefits and returns as a result of this new approach to paid marketing services.
What is performance marketing?
Performance marketing is a comprehensive term for online marketing and advertising programs where advertisers pay only when a specific action occurs. These actions can include a generated lead, a sale, a click, and more.
So what does this actually mean?
As a marketer (or a company), you want to connect with your audience and bring attention to your product, service, or brand.
To do this, you might create an ad that’s shown to people on social media, or in the Google search results when they search for certain products. With performance marketing, you pay depending on how the campaign performs.
Performance marketing professionals—in agencies, with media companies, publishers, or otherwise—rely heavily on paid marketing channels including:
- Native advertising
- Sponsored advertising
- Affiliate marketing
- Social media advertising
- Search engine marketing
How is Performance Marketing Different?
In most traditional forms of advertising, the advertiser pays a fee up front for ad space independent of performance. That could mean hundreds to thousands of dollars spent without ever seeing a conversion. With performance marketing, advertisers only pay for successful transactions.
Performance Marketing Strategy
If performance marketing is about paying for action, it pays to have a strong grasp on the various strategies most commonly used, and the actions most commonly measured.
- Cost Per Impression (CPM): The amount an advertiser pays a publisher per one thousand times that their advertisement is shown
- Cost Per Click (CPC): The amount an advertiser pays only when their advertisement is clicked on
- Cost Per Sales (CPS): The amount an advertiser pays only when a sale is directly generated by an advertisement
- Cost Per Leads (CPL): The amount an advertiser pays when they receive a sign-up from an interested consumer as a direct result of their advertisement
- Cost Per Acquisition (CPA): The amount an advertiser pays when a specific action, such as a sale, a form completion, or a click, occurs
It’s worth noting that each of the above actions is an advertising objective and therefore a measure of performance marketing effectiveness. To evaluate your choices, and continue refining them, you’ll need to consider your campaign goals, choice of platforms, costs, and of course, results.
The Importance of Performance Marketing
Performance marketing, as a concept, has grown in popularity in recent years as a result of the numerous benefits it provides to firms. The first and most obvious benefit of performance marketing is evidence. Unlike many other traditional marketing methods, it can quantify the effectiveness of your efforts and present data in real-time. It allows a company to make informed decisions based on such facts and figures. Apart from this, Performance Marketing can help firms to take advantage of third-party follower bases, budgets, and efforts at a minimal cost. By raising consumer awareness of your brand and its offerings, it can bring in new customers and revenues for your company.
Performance marketing combined with digital marketing gives a company a total and focused marketing approach that generates positive outcomes. Email marketing, affiliate marketing, and blog marketing can all be used to expand your advertising reach.
Moreover, this virtual marketing technique is simple to track, allowing your company to have better control over your marketing activities as well as helping gain insight into consumer behavior, all this based on data.
The most distinctive feature of performance marketing has to be the fact that it significantly reduces the risk associated with marketing investments. This is done by ensuring that you only pay when you receive the desired outcomes. This, in turn, provides more leeway in your budget for other marketing or related initiatives without compromising the campaign’s value.
When seeking a performance marketing agency to partner
Bharti Tech is a leading performance marketing Agency has multi-channel expertise (Whether it’s affiliate marketing, search engine optimization, high conversion web design, paid advertising etc.). As well as a holistic background in marketing strategy can significantly improve your marketing results as well as saving time, saving money, and most importantly delivering high ROI.