Marketing is a powerful way to generate product awareness and sales. With the rise of modern technology and the internet, digital marketing emerged, enabling businesses to have access to way more larger audiences than it was ever possible a couple of decades ago.
Unlike traditional marketing, given the diversity of tools and the complexity of the digital world, digital marketing needs more sophisticated means to be successful. Successful marketing campaigns are driven by the right strategy, and today we will be discussing performance marketing as one of these strategies.
Performance marketing is a digital marketing strategy that focuses on the part of marketing that ‘performs,’ therefore, it is driven by results; you pay for what you get.
Big tech companies like Google and Facebook pioneered the digital marketing realm with over 10 million advertisers on their platforms. While these companies have transformed the digital marketing field with constant innovation and development of new tools that consistently led to the development of new strategies, it also introduced a lot of complex jargons, important budget decisions, and somewhat misleading expectations.
As a business owner or a performance marketing specialist, you must have a clear understanding of what performance marketing is and isn’t
What are The “Results” That Performance Marketing Specialists are Trying to Achieve?
Advertisers pay only when specific outcomes are achieved. These outcomes could be: Ad-clicks, leads generation, sales target, or any other desired statistical outcome or target.
The term performance marketing was made popular after Google’s introduction of PPC (pay-per-click) advertising.
Can Performance Marketing be Considered Some Sort of Brand Marketing?
Branding and performance marketing are completely different strategies with different purposes. Branding aims to resonate with customers and build a connection with them. It’s inherently a long term strategy as the process of establishing a reputation and awareness is long and can’t be achieved overnight.
Performance marketing, on the other hand, is driven by immediate results without necessarily having to build a reputation or any connection with customers.
I Thought Marketing is All About Building a Connection with Potential Customers, How Can Performance Marketing be Beneficial Without Aiming for That!?
After all, it all depends on what business you’re running, and you determine after study and analysis what sort of marketing strategy works best for you.
Here, I will show you few benefits that performance marketing can bring to your business, if these are what you’re looking for, then you can give it a try:
Risk
This is the first thing that would come to anyone’s mind whenever they’re introduced to performance marketing. Performance marketing is extremely low risk, you literally pay for what you get. If the campaign fails for any reason, you won’t pay, that’s it!
You can also scale up the budget if the campaign works, otherwise, it is easy to back it up with absolute minimal losses.
Targeted
Social media platforms have revolutionized targeted ads as now it is more easier than ever to access your intended audience and target them with your message.
ROI
Due to the low risk of performance marketing, it can bring higher ROI than any other form of advertising.
Some Examples of Performance Marketing
Social Media Ads
Social media ads are popular forms of performance-based advertising. They allow you to target specific audiences based on demographics, interests, and behavior.
Native Advertising
Native ads, if not abused, blend seamlessly with the natural appearance of a web page or site. They promote sponsored content without disrupting the user experience.
Content Marketing
Content marketing educates your audience through valuable content. It can include blog posts, videos, infographics, and more.
Search Engine Marketing (SEM)
SEM involves paid search ads on platforms like Google Ads. It targets users actively searching for specific keywords.
Affiliate Marketing
In affiliate marketing, partners (affiliates) promote your products or services. You pay them a commission for each sale or lead they generate.
As a Performance Marketing Specialist or Agency, One of Your Job Responsibilities is to ‘Measure’ Your Performance Marketing Campaign
Performance marketing coins cost per result, here are the cost metrics that you need to pay attention to:
Cost per Click (CPC)
Cost-Per-Click (CPC), also known as Pay-Per-Click (PPC), refers to the amount of money an advertiser pays for each click on their online ad. The formula to calculate CPC is simple:
CPC = Total Cost / Total Clicks
Google ads provide PPC services, where an advertiser may run a Google Ads campaign and spend $50 for 500 clicks. The CPC in this case would be $0.10.
Cost per Impression (CPM)
Cost Per Impression (CPM), also known as Cost Per Mille, represents the total amount an advertiser pays for 1,000 impressions (views) of their ad. It’s a crucial metric in online marketing campaigns.This is calculated by dividing the total cost of the ad by the number of times it was viewed.
Cost per Lead (CPL)
Cost Per Lead (CPL) is a metric that measures the average cost of acquiring a single lead through a marketing campaign. It’s calculated by dividing the total cost of the campaign by the number of leads generated.
Cost per Acquisition (CPA)
Acquisition cost, also known as the cost of acquisition, refers to the total expenses incurred by a business when acquiring a new client or obtaining an asset. It encompasses all direct and indirect costs associated with the acquisition process.
Conclusion
Performance marketing is one of many digital marketing strategies, they are driven by immediate results, and don’t necessarily aim to build a brand image or an emotional connection with customers, yet it is effective depending on your business objectives! Jobzella can help you advertise performance marketing jobs, and recruit talented specialists as well!
