There are many types of digital marketing, and the channels and capabilities of each type are growing everyday. One overlooked digital marketing strategy is performance marketing. With conversion marketing, advertisers only pay when specific actions occur. For example, when a viewer clicks through to their page or makes a purchase.
In this article, we’ll take a deep dive into performance marketing: how it works, why you should use it, and what channels offer the most bang for your buck.
What is Performance Marketing?
Performance marketing is like a superhero in the world of digital marketing. It’s all about getting real results for your buck. Imagine you’re a company with a cool product to sell. With conversion marketing, you only pay for your ads when they actually do something awesome, like getting someone to click on them or buy your product. So, it’s like paying for success, not just for showing your ad to people.
How is Performance Marketing Different?
In traditional advertising, you pay upfront for your ad space, no matter what happens next. But with performance marketing, you only pay when something good happens – like when your ad gets a high-five from your customers. It’s like buying a ticket to a show and only paying if you enjoy the performance.
Here’s the fun part: measuring your success! With performance marketing, you keep a close eye on everything – from clicks to sales. It’s like being a detective, but instead of solving mysteries, you’re figuring out how to make your ads even more awesome. And if something isn’t working, you can tweak your strategy until it does.
How to Measure Performance Marketing?
Performance marketing is like having a magic wand for your advertising budget. You only spend money on ads that actually bring in customers, which is super smart and cost-effective. Plus, you get to see exactly how well your ads are doing and make changes to keep improving. So, if you’re looking to reach lots of people without spending a fortune, conversion marketing is definitely the way to go!
Top Performance Marketing Channels
Wondering which channels work best for conversion marketing? Here are five types that agencies and advertisers love:
1. Banner Ads
You’ve probably seen these ads online—they show up on the side of your Facebook feed or at the top or bottom of a webpage. Even though they’re not as popular as they used to be, they can still be effective if they’re done right.
2. Native Advertising
This type of advertising blends in with the content on a webpage. For example, you might see sponsored videos on YouTube or ads on Facebook Marketplace that look like they belong there.
3. Content Marketing
Content marketing is all about sharing useful information with your audience. This could be through blog posts, case studies, e-books, and more. It’s a great way to educate people and show them why they should care about your brand.
4. Social Media
Social media is a goldmine for performance marketers. Platforms like Facebook, Instagram, LinkedIn, and Twitter offer lots of opportunities to reach new customers. Plus, people can share your content with their friends, which can help you reach even more people.
5. Search Engine Marketing (SEM)
When people want to find something online, they usually start with a search engine like Google. SEM is all about making sure your website shows up when people search for things related to your business. You can pay to have your site show up at the top of the search results, or you can focus on organic strategies like creating SEO-friendly content.
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Conversion Marketing Examples
Here are some examples of results-driven marketing:
Pay-Per-Click (PPC) Advertising: You pay each time someone clicks on your ad, like those Google ads you see at the top of search results.
Affiliate Marketing: You reward affiliates for bringing in customers through their marketing efforts. They might promote your product on their blog and earn a commission for every sale they make.
Email Marketing: Even though it’s not always considered results-driven marketing, email campaigns can be a great way to drive results. You can track open rates, click-through rates, and conversions to see how well your emails are doing.
Search Engine Optimization (SEO): This isn’t paid advertising, but it’s still a big part of results-driven marketing. You want your website to show up high in search results, so people find you when they’re looking for what you offer.
Social Media Advertising: Platforms like Facebook and Instagram offer targeted advertising options that let you reach specific groups of people. You can track engagement, clicks, and conversions to see how well your ads are performing.
These are just a few examples of focused marketing channels that can help you reach your business goals without breaking the bank.
Why Does Performance Marketing Matter?
Performance marketing is all about getting results. Instead of spending money on ads that might not work, you only pay when you get the outcome you want. It’s a smart, cost-effective way to grow your business and reach new customers. So, whether you’re just starting out or looking to take your marketing to the next level, performance marketing has got you covered! Click here for read more about Performance Marketing
How to Get Started with Performance Marketing
Performance Marketing vs Brand Marketing
In today’s crowded market, it’s tough to stand out. That’s why building brand awareness is crucial. There are various ways to do this, like running social media campaigns, using native advertising, or engaging in content marketing. Interestingly, some of these tactics fall under performance marketing because you only pay for specific actions that drive results.
For instance, platforms like Out brain can significantly boost brand awareness by showcasing your content to your target audience. Since you only pay based on specific goals and results, such as generating leads or conversions, this qualifies as focused marketing.
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Performance Marketing vs Affiliate Marketing
Affiliate marketing is a specific type of performance marketing driven entirely by metrics and goals. Here’s how it works: you promote another company’s product or service online, and you earn a commission for every action taken by your audience, like clicking through to the merchant’s website or making a purchase. It’s a results-driven approach where payment is based on performance.
Performance Marketing vs Programmatic Marketing
Programmatic marketing is an automated way of purchasing ad space, aiming to target the most relevant audience at best price possible. This method is crucial for focused marketing because it allows advertisers to scale up and get the most out of their Return on Investment (ROI).
The beauty of programmatic lies in its detailed reporting and analysis capabilities, enabling advertisers to fine-tune their campaigns for maximum effectiveness. Understanding the distinctions between focused marketing, brand marketing, affiliate marketing, and programmatic marketing is key to choosing the right strategy for your business goals. Each approach has its strengths and can be tailored to suit your specific needs.