Competent marketing is the way to success in any enterprise. In conditions of high competition in the field of online business, it is important to attract and retain customers. But marketing should be effective not only in terms of sales, but also in terms of your expenses. Performance based marketing helps to make an advertising campaign more profitable and achieve goals faster.
Why this marketing is performance
Let’s try to briefly answer the question, what is performance marketing – this is marketing in which you pay for the result. That is, the payment is for the completed user actions that you need (subscription to the service, purchase of products, click, following the link, etc.). This opens access to the highest quality and detailed promotion, competent advertising settings and other opportunities of advertising performance.
A feature of performance based marketing is its demonstrativeness. Instead of metrics, you see specific ad results. For example, the number and amount of sales, the frequency of clicks, and so on. This is especially important for those who want to invest in their advertising as efficiently as possible. In addition, Performance marketing uses various performance media and does not work with an abstract planned audience, but with interested customers.
Reasons for choosing
We have already mentioned the features of Performance marketing. Now let’s take a closer look at all its pros and cons.
Difference from Digital Marketing
The comparison Performance marketing vs Digital marketing doesn’t really make sense, since performance marketing is part of digital marketing. The main difference is that in performance marketing, payment for performance advertising is carried out only after the user performs a specific action, while in digital marketing, different payment options are possible. Performance marketing definition implies that it is focused on increasing conversions and improving sales, and digital marketing covers a wider range of tasks.
How to work with Performance Marketing
Performance media marketing works according to certain principles and includes the following components:
- Information analytics. Analysis of results and data is necessary from beginning to end so that your campaign can constantly raise its effectiveness.
- An integrated approach. All performance advertising tools should complement each other and lead to the same goal.
- Clear goals. Your campaign should have a specific focus and action plan so that time and resources are not wasted.
- Management of all advertising channels. Thanks to this, the effectiveness of your strategy will increase, as the most profitable and useful performance channels will come to the fore, and the superfluous ones will be eliminated.
Stages of work
Deep data analytics
This stage includes both an analysis of your business and product – its strengths and attractions, advantages and disadvantages, and analysis of market and other performance media. It is worth understanding the audience, its desires and needs, finding out trends in your niche and getting acquainted with trends. This helps to choose advertising performance channels, determine expected conversions and profits, and develop the best strategy.
Setting goals
Goal setting helps to determine the methods of advertising and the tools that you will use, as well as to specify the deadlines and helps to find suitable performance media.
Performance media marketing technology allows you to set goals and achieve them with the help of a flexible development strategy. However, the goals that you set should be adequate and achievable, so it is better to split large goals into small ones.
Creating a comprehensive strategy
The strategy includes setting goals, selecting methods and tools, determining the audience, advertising performance channels and drawing up expected results. The strategy is aimed at tracking the behavior of the client: from the moment when he sees the advertisement to the target action.
Advertising campaign management
This is the stage of direct work on the maintenance and improvement of the campaign. It involves monitoring the effectiveness of performance advertising and changing or improving it, as well as reallocating the budget in favor of more effective tools and performance channels.
How to choose an intermediary
When choosing a company, agency or online platform with which you will implement your advertising, you need to focus on such items as:
- Portfolios, cases and projects that the company carried out
- Tools used for advertising and promotion
- Used performance media
- Customer reviews that are publicly available
- Strategy for achieving goals
As an example of such a network, you can put HilltopAds. This company helps businesses to increase advertising performance and profits and bring valuable customers, and it also uses modern technologies and tools. Working with them, you will see how effective advertising can be.
Summing up the results
The performance marketing definition speaks for itself – when using this promotion technology, your advertising campaign will reach the most valuable audience and bring guaranteed profit. Don’t forget that you won’t have to pay for useless traffic that is not beneficial for business. So, performance marketing can rightfully be considered a godsend for an entrepreneur.
Take a look at Churchill Insurance. In 2014, they faced some difficulties and decided to launch a performance marketing campaign. They have developed a strategy that includes four fundamentals: place, product, price, advertising. Churchill chose the place of advertising – MoneySavingsExpert (MSE), the only one with the necessary traffic, and decided on their company’s product so that it corresponded to the direction of MSE.
The company determined the price by studying its customers — it turned out that price is not as important to them as quality. The advertisement was a free coffee machine, which reflected Churchill’s desire to help people. All this brought the company a visible profit – 800 offers and 300 sales, which exceeded expectations by 50%.
Thus, performance marketing helped Churchill solve her problems and reach a new level. If you want to repeat their success, HilltopAds will help you conduct an effective advertising campaign.
