What is performance marketing?
Performance marketing strategies is when the marketing company we choose develops a marketing campaign with our business in mind. The company then implements the program.Similarly, we generally only have to pay for their services when we get more traffic to our website and more business.
There are many ways to implement a performance marketing strategy, and the method we choose for performance marketing depends on a variety of structures. Like performance marketing strategies, digital advertising is also an important component of marketing.
Showing your ad to people who are likely to click on it, and when they click on it, it increases your chances of success, which is exactly what we want with performance marketing.
Types of performance marketing channels
Performance marketing strategies in digital marketing is a general term that describes a set of different marketing channels. Marketing channels are the tools that allow us to connect with our target audience. Additionally, some marketing companies use a combination of marketing channels to promote their business with the help of a digital marketing expert. This is how the channels we can use in a performance marketing campaign work.
6 common performance marketing channels
● Social media
● Display ads
● Content marketing
● Native advertising
● Search engine marketing
● Affiliate marketing/sponsored content
KPI’s of performance marketing
KPI’s stand for Key Performance Indicators.
KPI’s help us understand how our marketing strategies is working.
KPI’s is not only helps us calculate our performance.
It helps to what needs to be changed, and which campaigns are performing well.
It helps to gather important information.
KPI tracks our performance marketing strategies campaigns is important because it helps us find how to improve our campaigns.
5 performance marketing KPI’s
● Cost per click (CPC)
● Cost per impression (CPI)
● Cost per acquisition (CPA)
● Cost per lead (CPL)
● Cost per sale (CPS)
Cost per click (CPC)
Cost per click (CPC) is also known as pay per click (PPC).
The advertiser need to spent spend amount when a user click on the ads
This is used in ad platforms like Google Ads, Facebook Ads, and other marketing channels.
CPC is the metrics for measuring the effectfull paid advertising campaigns.
Cost per impression (CPI)
Cost per impression (CPI), or cost per thousand impressions (CPM).
It is a core advertising metric used to determine the cost of every time an advertisement.
It is an important measurement for advertisers looking to reach and visibility of their campaign on media channels.
Cost per acquisition (CPA)
Cost per acquisition (CPA) is a marketing measures the average cost of recieve a new customer.
It’s used to find financial efficiency of marketing campaigns.
CPA is a necessary measurement of marketing success, generally famous from Cost of Acquiring Customer (CAC)
Cost per lead (CPL)
Cost per lead (CPL) is an online advertising pricing model.
The advertiser pays for an enrolled from a consumer interested in the advertiser’s offer.
It is also called online lead generation.
Cost per sale (CPS)
Cost per sale (CPS), is also known as cost per conversion.
This is the amount of an advertiser pays for each sale (conversion) generated by a particular ad.
This is also a metric that measures how much money a business spends to cause a sale.
It’s also known as pay per sale or cost per acquisition (CPA)
Examples of performance marketing
Here are some examples of performance marketing
1. Pay-Per-Click (PPC) Advertising
PPC (pay per click) is also a form of performance marketing strategies.
The advertiser pays cash for eash click that brings user ti thr website.
The advertiser need to spent spend an amount when a user click on the ads.
The common advertising platform for this is Google Ads, the old name for Google Ads is Google AdWords.
2. Affiliate Marketing
This is also a performance based marketing strategies.
Affiliate marketing is helps to promote a product or service on any e-commerce site or blog or social media.
When someone clicks on the link they provided and makes a purchase, they receive a percentage of the sale.
This is being widely used by many social media influencers these days, and it is possible to generate a good income through it.
3. Email Marketing
Email campaigns are also based on performance marketing strategies, but email marketing is often not considered under performance marketing strategies.
To optimize campaign performance, marketers can test content for action by optimizing open rate, click-through rate, and conversion rate.
4. Search engine optimization
Search engine optimization is not a paid service, it is an essential part of performance marketing strategies. The performance is measured by the ranking of the keywords, organic traffic, and more.
5. Social media advertising
Social media advertising is help to advertise and marketing through social media platforms.
These are some major platforms: Facebook, Instagram, Twitter, and LinkedIn, which are used to communicate and interact with people.
6. Influencer Marketing
Influencer marketing is a strategy with brand partner with social media influencers to promote their products or services.
Influencers have a large following and are considered acceptable on social media
7. Display Advertising
Advertisers pay for banner ads to be displayed on websites relevant to their product or service.
These are often paid cost per impression (CPM), cost per click (CPC), cost per acquisition (CPA).
8. Content marketing
The content we create promotes our client’s business or is related to their product or service, helping to increase sales and increase conversions.
Today, many social media influencers are using this marketing method to promote their businesses through collaboration.
This is favourable for marketers and business owners alike.
Conclusion
In summary, performance marketing strategies provides a unique approach driven by results as advertisers incur costs only when a click, conversion, or sale takes place. This system provides an opportunity for businesses to balance their marketing efforts with the productive performance marketing strategies and campaigns, thanks to real-time data. With ROI and accountability being clear within the performance marketing strategies, it is effective in driving growth while ensuring efficient use of the budget.