In today’s times we use Digital Marketing as a common term, Digital Marketing in an Ocean. In reality, There are many categories which come under Digital Marketing & each category is evolving everyday. The most dominant category which comes under digital marketing is Performance Marketing. These actions includes Generating a lead, a sales, a click or an App install. Basically, any aspect which involves a user to take an action on the website or any other digital platform can be termed as Performance. Above all, the entire case study of Digital Marketing is to understand the Human Behaviour. This takes time, With keeping this in mind we need build better engagement platform for the users. Performance marketing is mainly carried by Agencies, publishers or Freelancers and are heavily dependent on Performance marketing. Some of the key aspects which revolve under performance marketing are
Social Media Advertising
Search Engine Marketing
What Is Performance Marketing?
Performance Marketing is all about building the Right strategy. In simple term Performance marketing can be conveyed as Digital Marketing strategy which is driven by results. Performance Marketing is Paying for Action & Measuring the Action. It is put into work when agencies or Freelancers place Advertisements ( The content/Product/Service) on any number of performance marketing channels which is Social Media, Search engine, Video , Website Banners & More. The agency or Advertisers pay based on how well the Ad is performing by measuring the number of clicks, Impression, sales & conversions.
How Dose Performance Marketing Work?
Before we get into the work flow, Lets us have a brief about the platforms where the Performance Marketing are Applied. Facebook & Google Ads are the two Major platform where the Performance marketing is mainly leveraged. Each platform has a Different Audience segment and Target Audience. On facebook we target the Audience based on Interest and intent where as in Google ads keywords are taken into consideration before targeting. Facebook, the Leading social media giant offers many ways to display the Ads both on Facebook and Instagram platforms. Google ads display your ads on websites & across the google ads network. As is said Performance marketing is all about analyzing the right strategy & Measurement of Actions. Some important metric to be measured in performance marketing are as follows.
How Performance Marketing Is Measured ?
Cost Per Click (CPC) – The most common metric yet Very important one. The Digital marketing life cycle is all about how many times your Ad was clicked. CPC is a certain amount paid by the Advertiser for each time a user clicks on the Ad.
Cost Per Impression (CPM) Impression are essentially the Views of your Ad. The advertiser pay for every one thousand views.
Cost Per Sale – (CPS) – With this the advertiser only pays the conversion is Happened. That is the amount is payable only when the sales happens from the Ad.
Cost Per Lead ( CPL) – This is more like CPS – The amount advertiser pay when a Lead is brought in. This can Happen through Sign up or E-mail / Webinars.
Cost Per Acquisition ( CPA) – Which is more similar to CPS & CPL. The advertiser pays when consumer completes a specific action. But in general this can involve making a sale, sharing their contact information, visiting your blog, etc.
Best Platforms For Performance Marketing.
Search Engine Marketing – Most of the Re search is done by users on Search engine platform and the Chances of a user taking an Action on this platform is very high. Search engine marketing is one the most Rated platform for Performance marketing. The most focused metric here is CPC, Especially Paid ads where a user click on the Ad for a website and lands on the Landing page. For organic Traffic many performance rely on SEO & Content Marketing.
Banner Ads (Display) – Though may Digital Marketers find Banner ads Banner Blindness, Many digital marketing agency’s are finding good results and interaction rate through banner ads . These Ads many appear on Website and social platform in the form of Square or Rectangle.
Native Advertising – This is on most prominent way to get quality click and leads. Native ads are the Natural appearance of a web page or a site to promote sponsored content. Native advertising works because it allows your sponsored content to live seamlessly beside other kinds of organic content.This is more like promoting your brand in a Natural way.
Social Media Marketing – A huge plus point for Performance marketer here is the content can be even promoted organically which in return gets more impression and clicks. Facebook has the most extensive list of services for performance marketers.
Affiliate marketing – The most Interesting platform in Performance Marketing. It is an Established form of Performance marketing. Here, a publisher builds relationship with seller or the company and get’s paid for every referral made by the publisher through his Affiliate link. Affiliates are usually an extension for the company’s marketing efforts, Which in return will help the selling company to reach the right targeted audience through the Affiliate’s Audience. Affiliate marketer’s ever drive paid advertisements traffic to their Affiliate link. Affiliate marketing has been booming in the U.S Digital marketing industry and many E-commerce business prefer Affiliate marketing instead of paying for Agency.
The Benefits Of Performance Marketing.
The future of Digital marketing purely depends on Data. It is all about the Data driven strategy. Using performance marketing can help you in scaling your Marketing and Advertising efforts and can help in Decision making for your clients on whats next that has to be Adapted. With current boom in Affiliate marketing, Performance marketing will help you to scale your business without breaking your bank.
To hit a strike on your business goals, It is very important to make sure all the Campaigns are Built strategically in the right platforms. Choose the Right creatives based on the Campaign goal and make sure each of the Landing page has the right call to action button. Target right Audience your clients using the Performance marketing platforms. With the correct data and proper measurement metrics, Performance marketing will elevate your business goals.