Do you think a significant part of your marketing strategy today should be digital? If your answer is 'Yes" then you are correct and moving in the right direction. Billions of people are always online every day and, on the go. So, putting your business on their faces wherever they are is the goal.
However, navigating the digital space can be very confusing and overwhelming. So, the question remains what can you do to solve this problem? Well, the solution is investing in performance marketing.
In order to drive traffic, boost conversions, and amplify return on investment with this strategy, you need to have an in-depth understanding of how it works, and when to use it while maintaining absolute control over the money you spend on marketing.
In this blog Unify Wizards has put together the meaning of performance marketing and why it is so important for business growth in 2024 and beyond.
What Is Performance Marketing?
Performance marketing is a marketing strategy where brands only pay service providers when they meet their business goals. This means brands will only pay when certain actions are performed, such as clicks, sales, or leads.
Performance marketing is completely based on actual performance and focuses on measurable outcomes. With this, brands can easily calculate their return on investment and change strategies when necessary.
Here are some of the results brands will get when they use performance marketing
- Traffic to websites and landing pages
- Create and increase leads
- Boost brand's sales and conversions
- Measure marketing campaigns in order to maximize ROI
Difference Between Affiliate Marketing and Performance Marketing
Affiliate marketing is the process where a person is paid a commission for marketing another person’s or company’s products or services. This means when someone collaborates with a brand or company to promote their product, they get a commission from each sale they make.
Some examples of affiliate marketing include influencer marketing, email marketing, search marketing and many more.
Performance marketing is a broader strategy that focuses on creating strategies that drive business growth. Instead of only paying when a sale is made, companies pay when a desired result for that campaign is achieved.
Different Ways to Measure Performance Marketing Effectively
Pay-Per-Click Advertising (PPC)
Pay-per-click advertising is the process whereby brands pay a commission every time someone clicks on their ads which leads to a desired landing page. This form of advertising is the best for businesses that want brand visibility and maximum results on investment.
PPC is done through search engines such as Google Ads and social media platforms like Facebook, Instagram, or TikTok.
PPC can be measured, making it a cost-effective way to reach out to potential customers who are looking for solutions that the brand provides. It is also used to drive immediate traffic to a website.
Cost Per Acquisition (CPA)
This type of strategy is used when businesses only want to pay when customers make a specific action. These include completing a sale, a sign-up, or a download.
For example: A brand that sells wedding gowns will only pay when a consumer completes a purchase no matter the times they browse through the website and click on the ads.
With this strategy, business owners are able to reduce the money they spend on ads while maximizing their returns.
Pay Per Lead (PPL)
Pay-per-lead is a type of digital marketing strategy where brands only pay for each lead generated by the ads. For example: If a consumer provides their contact information or fills out a form after clicking an ad.
Although it doesn't matter if the consumer finally makes a purchase or not, it is great for businesses that want to get useful data about their potential customers. With this information, brands are able to build strong relationships and convert them to paying customers.
Other examples of lead-generation advertisements include the following:
- Registering for a newsletter
- Signing up for a free trial
- Requesting more information about a product or service
- Submitting their contact details to schedule a demo
How to Create a Successful Performance Marketing Strategy
Have a Goal
When using a performance marketing strategy, the first and most important thing to do is to have a goal. Do you want to build a strong brand awareness, sell more products, or increase your subscribers? You can achieve your goal by carefully crafting a campaign message tailored to your target audience.
Having a clear goal allows you to create a defined campaign message with the right language and images that will resonate with your audience. You can also create powerful calls to action after the campaign that encourage people to take action.
Position Your Brand
With many brands in the digital space, it is important to stand out by crafting an identity and letting your audience know what your brand stands for.
For example: Disney is known to be a family-friendly brand and Starbucks is known for providing quick coffee. Show your audience how you are different from your competition and the solution you bring to the industry. When you position your brand, you can easily choose your target audience and define your messaging.
Have Performance Targets
Performance targets help you to know if your marketing campaign is going to be successful in the long run. When you have a goal for your campaign, it help you determine the type of digital marketing KPIs to track and what you’re aiming for
Whether you want more clicks or increase website visits, sales or conversation, you can set a performance target to define your success. Without performance targets, you might not be able to adequately measure your performance marketing strategy. Therefore, they are important for redefining your business goal and future campaigns.
Use Multiple Channel
No matter your goal, you should always opt for an omnichannel approach when creating performance marketing. Remember; your target audience is likely to be in multiple social media platforms and other marketing channels.
Therefore, you cannot limit yourself to just one performance marketing channel. Also, do thorough research to know where your target audience spends most of their time online and use it to prioritize your ad budget.
Launch Your Campaign
After doing all the points mentioned above, it is time to launch your campaign. It is also important to make sure everything you are using for your campaign is tailored to your target audience in order to improve your chances of success.
After launching the campaign, it is time to start tracking your key metrics and do A/B testing. If you notice your ads are not performing below your goal, you can refine your messaging and test again until your get your desired result.
The Bottom Line
Performance marketing is about achieving precise results and measuring the effectiveness of each action in a clear and measurable way. Return on Investment is the essence of performance marketing as it allows marketers to track the money they spend on marketing and how it benefits their business.
The beauty of performance marketing is its ability to track every action and connect it directly to performance metrics that can be used to optimize and improve future campaigns.
Are you ready to measure the success of your marketing strategy with performance marketing services? Unify Wizards is your best bet to be ahead of your competition and achieve success in this digital era. Our team will analyze your brand and develop a marketing strategy that will increase your brand's online presence.