The internet has brought many benefits to our world, and in many ways changed how we shop, search for information, read the news, etc. The global phenomenon has made it easy to connect with a myriad of consumers in no time. The rapid evolution of consumers' online behaviour has also led to an evolution in how companies act and present themselves on digital platforms - this is where performance marketing comes in. With the commercial possibilities of the internet, performance marketing has become an absolutely essential part of today's digital marketing. If you want to boost your company's online presence and performance, read on!
Performance marketing is a digital marketing strategy that involves companies paying only for the results of their ads. In short, it means that you only pay when consumers have interacted with your campaign - for example, in the form of a sale, clicks or leads. Today, the marketing industry has access to tools that collect data and measure users' actions online, allowing campaigns to be continuously optimised for better performance - hence the name 'Performance Marketing'.
There are several different forms of performance marketing. One of the most common examples of performance marketing is affiliate marketing. Here, a commission is paid per conversion, which could be a product purchase, customer referral, booking, etc. Affiliate marketing is driven solely by metrics, where a commission is earned for promoting a product or service for another company.
Other examples of performance marketing:
As you might have guessed, there are several factors that make performance marketing a beneficial choice. There is, of course, the obvious advantage that you only pay if you get results.
In addition, performance marketing focuses on tracking and data-driven analytics, giving marketers more control over their budgets and ROI (return on investment). The analytics tools also make it easy to keep a finger on the pulse of the campaign, so you can continually adjust and optimise when necessary. The purpose of performance marketing is also to create space and opportunity for campaign optimization, which overall elevates the brand across all metrics.
As you could read in the examples, there are many different types of performance marketing, which also means that there is no one definitive way to do performance marketing.
However, there are some general steps in putting together a marketing strategy, which can be used as a guide to get your performance campaign towards success.
Step 1: Establish your campaign goals
Good objectives are essential for any campaign to be able to continuously adapt and evaluate it. It is therefore important to set relevant objectives before developing the campaign. For example, you may want to increase your brand awareness or sell more products. Campaign objectives also guide you on where to display your ads and who to show them to.
Typical digital marketing objectives:
Step 2: Choose your digital channel(s)
It's a good idea to use different media for your campaign, as it helps to create exposure and reach, which increases the chances of achieving a successful campaign. Here you can consider which channels suit your conversion types and where you are most likely to find your target audience.
Step 3: Create and publish the campaign
Performance marketing includes creating campaigns that are relevant to your desired audience. Here it is a good idea to make a target group analysis, which you can use the Minerva model to understand their needs and interests and to capture their attention. The better you understand your audience and how your product or service can appeal to them, the easier it will be to create effective performance marketing.
Step 4: Measure and optimise your campaign
Once the campaigns are launched, this is when the final work takes place. A performance marketing campaign starts generating data the moment it goes live. It's then up to the marketing staff responsible to analyse and monitor metrics to determine which channels and sources of traffic are performing best.
Step 5: Deal with potential pitfalls
As with any type of campaign, there are potential challenges and pitfalls that you should take into account when planning to use performance marketing.
Challenges of performance marketing can be:
One way to reduce potential problems is to use your resources exclusively on quality performance marketing tools, as issues such as privacy will be handled responsibly and reliably here. This is where it is particularly beneficial to be associated with a digital marketing agency.
This gave you a brief introduction to what performance marketing is and why it's particularly smart when you're working with digital marketing. If you'd like to get started with performance marketing, where you only pay for the results you experience, don't hesitate to send us a message.
At Webamp we are a marketing agency dealing with SEO, advertising on Google and further digital marketing - we are also experts in creating digital visibility and targeting both through Facebook advertising and SoMe marketing. Contact me or one of my colleagues at Webamp on tel. 70 60 50 28 or by email at firstname.lastname@example.org.
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