In recent years, performance marketing has become the new normal for many companies around the world. It works by using clearly defined measurable objectives to drive payment or optimization. Examples of Performance Marketing approaches include Cost Per Action (CPA) models and Affiliate Marketing. So why is Performance Marketing the future of digital marketing? This article will answer that question.
In CPA, advertisers or marketing companies are only paid when a specific action occurs, like when popular provider of views on YouTube get the views of a video to increase. For example, if you make a sale, you get a commission. Traditional advertising pays a fixed fee upfront, without being tied to the actual success of the ad campaign. By only paying for value that you get, performance marketing allows you to track and measure the performance of a particular ad in real time – added Tactica, a performance SEO company.
In the digital space of Internet Marketing, many companies face the problem of retargeting customers and converting them in their marketing models. For example, if a potential customer leaves your website without making a purchase, it is easier to market directly to them because they have prior knowledge and engagement with you and your brand. You could leverage this and incentivize them to make a purchase. Performance marketing offers better Return On Investment (ROI) when it comes to targeting marketers.
Performance marketing offers several advantages, such as:
It is now possible to target customers across multiple devices. This allows you to reach a much wider audience with desktop, mobile web, mobile app, social media, and email. With performance marketing, you can tailor make and target specific clients with specific ads and track how they are performing.
Performance marketing allows marketers to collect specific data on their ad performance. It is much easier to figure out how each ad is performing and respond accordingly. These insights make evaluation much easier and the potential to deliver the desired results much greater.
In the digital world, performance marketing offers a wide range of tools, plugins, and powerful technology that can be taken advantage of in tracking, targeting and attribution. These tools enhance efficiency and boost ROI of marketing efforts.
For example, AMP Stories is a new visual format that gives you the ability to tell stories in search results, that is, you’d come by the website if the search engine optimization of the website is optimal. By combining the power provided by all these tools, performance marketing has become an essential part of all business models. It is much more efficient, streamlined, powerful and trackable through the data and metrics it provides, which can help move your business to the next level.
Plus, if you create personalized and targeted solutions for your customers, you not only delight them, but you also improve their efficiency in accessing content relevant to them, which adds value to their overall experience. This, in turn, makes your products more valuable.
The rise of performance marketing, where marketers earn money in a way that is directly tied to marketing performance, has led to some awkward questions about marketing attribution. How do you precisely determine which ad led to a particular sale?
These questions have important implications when it comes to correct attribution for performance marketing. Below are some strategies that can be used to help successfully track and tie marketing efforts to sales.
The attribution window (also known as the ‘lookback window’) is used to define the length of time between a user seeing an ad and making a purchase attributed to that ad. The online ad industry standard is 30 days, though this can differ significantly depending on the product. For high-value items, this window is often necessary to factor in the length of time a user may take to research options and make a purchasing decision.
The attribution window is not a particularly sophisticated method of marketing attribution, as it can be hard to pinpoint specific marketing efforts if multiple campaigns are ongoing or overlap at all. The attribution window can be used by itself to determine marketing attribution, or it can be combined with other options to more directly attribute marketing performance.
Product SKUs can easily be tied to online ads, but SKUs similar to that ad should also be considered for marketing attribution. Variations on product upsell and cross-selling may occur due to a user clicking on an ad for a similar but different SKU. It can be industry-specific, and some advertisers are very strict about SKU relations. Still, it can be reasonably expected for particular products or industries to fairly attribute multiple SKUs to the purchase of a different SKU.
For example, a user may click on an ad for a 50-inch TV from a particular brand. They may purchase that TV or look at several different models from the same brand and make a purchasing decision based on some other factor such as size or energy efficiency. In these instances, there is still a reasonable argument for tying performance marketing to a particular ad even if it is not the same SKU as the one purchased.
One of the more contentious points for performance marketing-based attribution is whether views or clicks are counted for attribution. Is it fair to attribute a sale of a particular SKU to an ad for that SKU, even if the deal did not directly come from clicking the ad? This ties into the concept of the attribution window in many cases. Users who view an ad may not make a purchasing decision immediately after seeing the ad, but in time, decide to purchase a particular product due to the ad’s influence. Therefore, performance marketers must ask the question: do you tie marketing attribution to views or clicks?
Research has shown that post-view conversions are often overlooked and highly valuable for marketing and brand recognition purposes. It is why many ad campaigns are spread across several different social media sites and ad networks. Not only does this increased exposure, but it also helps remarketing efforts. Some users may only make a purchasing decision after viewing ads several times across multiple channels.
When it comes to marketing attribution, the rule of thumb is that post-click conversions trump post-view conversions. It’s far simpler and more accessible to tie sales to clicks than to views directly, so in ambiguous cases, post-click conversions are typically favored. However, post-view conversions are also of significant value to performance marketers. Attention should be paid to these conversions as part of the fair assessment of performance marketing-based marketing attribution.
Stop chasing new things, plan for the desired performance you want, and be sure to experiment with new things.
Many companies fell into the trap of going after programmatic marketing instead of performance marketing because it was new and everyone else was doing it. Besides being difficult to understand, programmatic marketing had little to show for the results of your efforts. The point is, it is easy to fall prey to trends and fads. You should test out the latest trends, but make sure to always go back to the tried and tested, and let your objectives guide you.
You need to know how to measure success. You do not want to sink cash in a project that is going nowhere. What will determine your success? Do you want more user engagement, more conversions, or more people at your booth? You need to be specific in how you will quantify your success. Set your goals, have the numbers down and track your performance based on those figures.
You need to be confident enough to try out new things knowing that some of them will not work. This is what separates the most successful companies from the rest. Set the trend and stand out from the crowd. The best way to achieve this is by innovating and trying out something that your competition hasn’t done before.
When experimenting, remember to be cautious. Great results today might not necessarily mean they can be maintained for the long haul. Poor results today might mean better loyalty in the future. When you experiment, personalize your data and make it work for you.
Performance marketing truly is the future of digital marketing. It is all about staying relevant to your customers. If you are not already taking advantage of it in your business, you are missing out. Additionally, you can outsource the social media marketing services of your business to European countries. According to OutsourcetoEU, when you outsource to Europe, you stand to gain from several companies’ vast experiences and effective social marketing tips.
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