Performance marketing is a form of online advertising that is based on optimising for specific KPI’s or performance metrics. Unlike traditional forms of display advertising with which you will spend a fixed and often very hefty amount upfront, you will only pay if and when your desired KPI is met. Performance marketing is highly measurable and as a result, campaigns are easy to monitor, switch up and optimise within a fraction of the time and cost of traditional advertising mediums. This means that if initially, your campaign is a flop it won’t cost you, plus you’ll be armed with invaluable insight and learning’s with which to build out a top performing campaign next time.
Key Characteristics and Advantages of Performance Marketing:
- Performance marketers will create campaigns geared towards driving specific actions from the customer, such as clicks, signing up for an account, filling out an enquiry form, purchases and more.
- As such, performance-marketing campaigns are highly measurable. Using tracking tools like cookies or pixels allow the marketer to see exactly what happens on every individual customer journey, after the click. This kind of data is much more quantifiable than things like customer satisfaction or brand awareness, and therefore easier to draw actionable deductions from.
- This can help advertisers see where their campaign is providing value as well as identifying the aspects that need optimising or discarding altogether. For example, your website visitors might be departing without completing your desired action when they reach a certain question in your enquiry form, or even as soon as when they see your landing page.
- You define the conversion goal that is important to your business, and you will only pay once that target has been hit. As a result, performance marketing is much lower risk than traditional marketing, and you should be able to predict the cost of a campaign before you launch it.
- Turnaround time for performance marketing campaigns is much shorter than traditional mediums because the performance data is delivered in real time. As a result, you can edit your content, targeting strategy, budgets and more, as your campaign is running.
- Performance marketing can work for large brands with unlimited funds, as well as smaller organisations with much lower marketing budgets. Because you can customise and control each element of your marketing campaign, this makes it a much more accessible channel for smaller or newer businesses who are still trying to learn what works for them. You only pay for successful transactions and you define how much you would be willing to pay for one, so there’s little risk of spending over your means.
- Performance marketing campaigns can be delivered through a wide range of online channels and can be optimised for different devices too. From social media, emails, content, native to search and display, there are numerous ways to create and distribute a performance marketing campaign.
What kinds of businesses should use performance marketing?
We live in an Internet age. Consumers will go online with the direct intention to buy something, conduct research about a service or products they require, stream videos, read the news or browse their social media accounts. Consumers can be targeted with performance-based campaigns through any of these online activities, which means that there is really no limit to the type of business that can benefit from performance marketing.
Media Maze specialises in data-driven, performance based marketing. We pride ourselves on the tangible results we generate for our clients, our fine-tuned industry knowledge and being one step ahead of the rest at all times. If your marketing activities are lacking in direction or just aren’t performing the way you’d like, get in contact with us through firstname.lastname@example.org to discover how we could transform your ROI.