Your Martech

Performance Marketing

Performance marketing is a branch of digital marketing in which brands only pay for campaigns based on how well they perform. When a brand pays for its digital marketing efforts depending on target achievement or action, this is known as performance marketing. Any action that can be tracked and linked to a marketing campaign, such as a click, purchase, sign-up, or download, can be considered as this.

Depending on the expected outcomes of the brand and the channels used, performance marketing can be divided into a number of categories.

Anticipated Outcome Based

  • Goal Based campaigns
  • Action Based campaigns

Channel Based

  • Email performance marketing
  • Search performance marketing
  • Social performance marketing
  • Affiliate performance marketing

How exactly does performance marketing operate?

The number of participants in a typical performance marketing campaign ranges from two to four. Performance marketing participants include:

  1. The brand or advertiser is the business attempting to use marketing     to bring in leads or sales.
  2. The publisher is the business or person that displays the ads on their websites or in their mobile applications.
  3. The network is the independent platform that links advertisers and publishers and coordinates payments and tracking between them.
  4. Outsourced programme manager these businesses offer the advertiser all the services required to manage a successful campaign, from media planning and buying to optimization and analysis.

Strategy and Planning

The campaign’s initial phase is to plan and strategize. This will entail creating a campaign objective and a plan of action to achieve that goal.

SMART targets (specific, measurable, attainable, relevant, and time-bound) are commonly used in performance marketing.

Typically, this goal is measured using industry-specific metrics.

  • CPM stands for cost per mille, or the cost of generating 1,000 impressions.
  • CPC: Cost per click, or the cost of generating a single click on an advertisement.
  • CPA stands for cost per acquisition, which is the cost of generating a desired activity, such as a purchase, sign-up, or download.
  • LTV stands for lifetime value, or the average value of a client over the course of their association with the organisation.

Choosing a channel

Display, search, social, email, affiliate, and mobile are the most common channels used in performance marketing.

Email performance marketing – The act of targeting customers who have joined a brand’s email list with advertisements via email. The advertising can be purchased on a CPM or CPC basis and come in text or HTML formats.

Search advertising Targeting customers who are already seeking for a good or service similar to what a company is marketing is known as search advertising. The adverts can be purchased on a CPC basis and show up as text ads or sponsored links in the search results.

Affiliate performance marketing is the practise of utilising affiliate marketing efforts to meet corporate goals. Affiliate performance marketing uses a commission-based sales model to persuade people to purchase goods or services from the advertiser. This can be accomplished by forming partnerships with pertinent affiliate publishers, curators, and influencers, and by making them lucrative offers.

Social performance marketing is the practise of achieving brand-related objectives through paid and unpaid social media marketing activities. The goal of social performance marketing is to produce interesting content that will motivate people to engage with the company. This can be accomplished through paid advertisements, but producing excellent organic content is the more popular method.

Don’t hesitate to reach us