Performance marketing, as the name suggests, is a form of online marketing based on performance. In this type of online marketing, the publishers are only liable to paid by the retailer or service companies when a specified task completed successfully. It is a result oriented marketing technique and thus getting immense popularity these days. So let us talk more about performance marketing, its benefits and why it’simportant these days?
What is Performance Marketing?
With the advent of internet, the online selling and purchasing is becoming normal. To boost the sales of your business, you must introduce it to the online platform, if not done already. However, looking at the high level of competition, retailers often look forward to a solution where they pay only when the desired or expected results achieved. This digital marketing strategy known as performance marketing.
Performance marketing, also called performance media marketing or online performance marketing,is a digital marketing strategy that allows a freedom to the merchant to pay to the affiliate or publisher only when the defined action takes place. This allows both the parties to remain in a win-win condition by targeting on the campaigns and its outcomes and focusing on increased ROI.
Channels of Performance Marketing
Performance marketing campaign may involve the usage of different channels. These channels are listed below:
- Social Media Marketing
The social media marketing includes the use of different platforms like Facebook, Pinterest, LinkedIn, Twitter, Instagram etc. These platforms used to create a brand awareness and display content to get traffic. Depending upon your product, the emphasis may build up on a particular platform. The performance metrics achieve by monitoring the number of likes, share, comments, clicks, sales generation, number of leads and checkouts.
- Sponsored Content
The third party content creators and content sites mostly use this type of performance marketing strategy. In the sponsored content marketing, the by joining hands with influencers and brand ambassadors to promote the product generally in return to freebies and free products. The use of sponsored blogs posts and articles made to gather the interest of targeted audience. The content creators sponsored to write promotional content about the product and influence audience to make purchases.
- Affiliate Marketing
Affiliate marketing is a form of performance marketing. In affiliate marketing, the affiliate being paid for each conversions. For example, the marketer can place banner ads on the other website that somewhere related to their product. The advertisers can hire influencers to promote their product and later on pay them as per the lead generation.
- Native Ads
Native advertising is a form of advertising where the ad content is blend with the medium where it needs to publish so that it doesn’t look like a direct advertisement. It looks like a relevant content to the readers and influence them to make a purchases.
- Search Engine Marketing (SEM)
SEM or Search Engine Marketing is an advanced marketing tool that is also known as paid search advertising or pay per click (PPC). In this type of performance marketing, the advertiser is bids on the keywords and pay for every click on the advertisements posted on the search engines; Google, Bing and Yahoo.
Benefits of Performance Marketing: Why is it Important?
In the performance marketing technique, the advertiser or the merchant pays only when he gets the desired results. A merchant can observe numerous benefitson opting the performance marketing for his business. The major benefits listed below:
- Allow Real–Time Track and Measurement of Result
Performance marketing aims to boost your sales and business growth through structured mechanism. You can easily track and get the direct metrics of the number of clicks, leads and impressions to check the sales growth. A marketer can find out on a real time basis about how many subscribes or ad clicks he gets on a specific promotion and if he’s meeting the desired goals.
- ROI Driven Strategies
Performance marketing is focused and more reliable as compared to other traditional marketing strategies. It concentrates on bringing returns on investments and let the advertiser to check the real-time results. The marketer can allocate the budget, increase or decrease as required which is not always possible in other traditional marketing tools.
- Pay on Action
The performance marketing most highlighted benefit is here you ought to pay only when receive the desired results. It is a risk-free advertising tool where the marketer feels much safer in terms on money spent. Usually, the payouts are done on the cost-per basis ensuring the money doesn’t get waste and the advertiser gets maximum benefits out of it.
- Allows Brand Building
Performance marketing allows the business owner to build their brand and grow on the various platforms. The increased traffic and audience lets the business grow faster with higher sales and larger market share.
Performance marketing is a well-known digital marketing strategy, which aims to build the brand name by increasing the targeted audience and increased leads. It is safe, risk-free, and therefore opted by many marketing agencies and businesses as a primary advertising tool.