One strategy that allows you to reach more audiences for less: performance marketing. It allows you to collaborate with smaller creators, so they can reach the demographics that your campaign might have missed. Believe it or not, regular people have millions of followers as influencers online, and they can direct those people to your brand.
I’ve described affiliate marketing, which is one performance marketing strategy. This marketing campaign only allows you to pay when it gives you results. Other parts enable you to spend less money on other services. Read on to find out more about this digital marketing method!
I’m going to talk about what performance marketing is, especially what channels are available. Next, I’ll go through the different situations when you need this marketing strategy. Next, I’ll explain the potential risks you might face in performance marketing. Here is a summary of the topics I will be discussing:
What does performance marketing mean?
As the name suggests, it is a way of promoting products and services based on performance. It includes paying a third party once they achieve the results you want.
If you know something about affiliate marketing, this might ring a bell. This method needs online influencers to promote a brand using their favorite online channels, often social media.
This type of marketing is a part because it includes many other methods, including affiliate marketing. The following are the types of performance marketing channels:
- Affiliate Partners It is another word for the online influencer portion of affiliate programs. They usually get a promotional code or URL from a company. Then the partner must convince others to pay for a product or service using that code or web address. If you want a great example, check out LeadAdvisors.
- retailers They are companies that can host your content on their websites. This allows you to publish your online presence at checkout only when people click on your link or purchase from your brand.
- Affiliate Networks or third-party tracking platforms that provide various tools such as text links, banners, and product feeds. They also allow you to track certain metrics such as conversions, leads, and clicks.
- Software management outsourcing companies Also known as Affiliate Managers (OPMs), they can handle all the marketing on your behalf. They have the right people and tools to plan and implement your performance marketing campaign. As a result, they can save you the hassle of building a new team just for this purpose.
- Social media ads Includes placing ads on sites like Facebook and Youtube. For example, recent TrueView ads allow you to pay only when a video ad has been running for at least 30 seconds.
- Search Engine Marketing It consists of two parts: advertising and search engine optimization. You can show your ads to people when they search for keywords related to your brand. SEO involves putting keywords in your content to help it appear first in search results.
- original ad It is also called Sponsored Content, which is the type of advertisement that blends in with the regular content of other websites.
How do you measure this type of marketing?
We now know that performance marketing means that you only pay when you get the results you want. Next, here are the ways you can pay for it:
- Pay per lead It means that you pay to generate lists of leads. A “lead” is a specific action that demonstrates that a customer is working on a specific part of the sales funnel. However, performance marketing uses it to get information from customers. You can use this for other methods such as email marketing.
- Cost Per Acquisition (CPA) Or pay per sale means that you pay each time your customer completes a purchase. Online companies often choose this model.
- Cost per mile It means that you only pay when your ad appears to viewers 1000 times.
- pay per click It means that you pay for clicks that direct people to your landing page.
- Procedure cost It includes paying whenever your target audience does other things you want them to do, such as signing up for your newsletter or downloading your e-book.
Read more: How does marketing work after COVID?
What can performance marketing do for my brand?
You need this type of marketing if you need measurable results for conversions. Other options can help you boost brand awareness and drive traffic to your website.
Take classic billboards, for example. At the time, it was the best way to show your brand to many people. The problem is that it’s hard to tell if they’re working or not.
That’s why they are often found in crowded areas, such as New York Times Square. However, it is difficult to know if the advertisement is working because you have other marketing methods.
Do you want to know if your banner ad is making people buy your products? can do it! On the other hand, real-time marketing performance measurement platforms track.
Moreover, you have to decide how much you spend each week or month. Social media and search enable users to set a budget so that the page does not spend more than that.
You can also set up your ads, to appear only to a certain group of people. This allows you to get the most out of every dollar you spend on this method.
Even better, another company can do all of this for you. If you have a marketing team now, the members will probably be busy on another project.
It’s not a good idea to divide their time for new time, but getting new people costs a lot. Even if you do, you may have to train them as well. You can skip all this with the help of another company!
What are its risks?
You must plan and launch your campaign properly. Otherwise, you may put in a lot of money but never get the results you want. This is why your goals and metrics must match each other.
Let’s say you want to get more sales, but you’re setting up a pay-per-click banner ad model. Next, let’s go a step further and assume that many people are clicking on your ad.
What if they don’t buy your products when they land on your page? This means that you pay every time someone clicks on your ad, but you don’t get the added sales you want.
Also, you can measure metrics that don’t help your brand at all. This is more common when you have affiliate marketers. If they get more followers, it doesn’t always mean that you get more customers.
Even worse, some marketing companies may use black hat tactics to give you results. These are methods that may produce short-term results but cause long-term problems.
Let’s say a company populates your content with keywords, but it sounds like nonsense to your readers. The page may contain a list of common search terms, but that’s it.
You may get more people clicking on it at first. They will eventually notice that your page does not contain anything important, so they quickly close your page.
This increases your bounce rate, making it clear to search engines that your content may not be useful. After all, why do so many people leave it after a few seconds?
As a result, Google will likely leave your page in search results after a week. Just like this, your results are cut short, but you still have to pay full price!
Performance marketing is a good option to maximize results and reduce costs. However, you should be careful when choosing your channels.
You can skip the hassle of handling the campaign on your own by letting the digital marketing agency do it for you. However, you need to be careful when choosing.
It’s better if you get a company that has provided results for hundreds of companies. This record will prove that it can provide the results you need.
Fortunately, LeadAdvisors meets these requirements, so you can rest assured that your marketing is in good hands. Learn more about its services through click here.