When running a business, you want your investments and efforts to consistently produce positive financial returns. However, this is not always possible especially when you are still building your brand. Traditional marketing strategies demand significant amounts of money for printing marketing collaterals and running TV and radio ads. This is without any guarantee in achieving your desired results. Measuring and pinpointing the most effective marketing tools can also be difficult, if not impossible, so all you can do is wait and pray.
Fortunately, there’s a way to widen your reach, engage more buyers, and increase profits at a lower cost, lower risk, and much higher returns of investment. With performance marketing, you can measure the actual performance of your marketing partner, and only pay them for every successful outcome, instead of their general efforts in promoting your brand and products. Continue reading to learn more about performance marketing and how it can help you build your company.
What Is Performance Marketing?
Performance Marketing is a collaboration of paid advertising and brand marketing put together but only paid out when a specific action takes place. These actions can include a completed lead, sale, click, booking, or download. Although it has been around since the mid-’90s, beginning with pay-per-click campaigns, performance marketing has become more popular with recent technology that allows companies to collect more data on their traffic and campaign performance. The gathered data allows them to identify the strategies that have the most success and focus their efforts accordingly.
Common Performance Payout Models
- Cost Per Impression (CPM) – the amount paid per one thousand times that the ad is shown;
- Cost Per Click (CPC) – the amount paid only when their advertisement is clicked on;
- Cost Per Sales (CPS) – the amount paid only when a sale is directly obtained by an advertisement;
- Cost Per Leads (CPL) – the amount paid when you receive a sign-up from a potential customer as a direct result of the advertisement; and
- Cost Per Acquisition (CPA) – the amount paid when a particular action, such as a click, form completion, or sale, takes place
Performance Marketing Channels
Display advertising is a type of digital marketing that comes in the form of banner ads (graphic or text), rich media, and more, usually found in designated corners of web pages and social media platforms.
Native advertising is the use of ads that blend in with the look and function of its environment. They are in social media platforms, or as a recommended content on a website. And, because they don’t look like the usual display ads, they expose the reader to advertising content without being distracting.
Search Engine Marketing
Search Engine Marketing acquires visibility and reaches potential customers when certain search terms are entered into search engines such as Google, Yahoo, and Bing.
Social Media Marketing
Social Media Marketing is executed by showing advertisements on social media websites such as Facebook, Instagram, Twitter, and LinkedIn.
Affiliate marketing involves offering compensation to a partner or third-party publisher to generate traffic, leads, or sales. Your options can range from bloggers to influencers to discount sites, depending on your targeted buyer’s behaviour.
Benefits Of Performance Marketing
1. Easy Tracking
Data analytics tools that can help monitor the performance of marketing campaigns tracks and measures performance marketing campaigns. As such, you can find out which strategies work and pay only for successful transactions.
2. Low Risk
Since you know what’s happening at every stage of the marketing campaign, you can reduce risk as you see fit. Consequently, you can also optimize the strategies that give promising results and hasten launching times.
3. Extend Advertising Reach
You will have a team of professionals that will promote your brand, products, and services. They have access to specific niche markets that you might not be able to reach on your own.
4. Add Innovation And Creativity To Your Marketing
You can count on affiliates to be aggressive. Positive outcomes are the basis for pay. So, they will use creative and innovative methods and resources to get desirable actions, which in turn help uplift your brand and boost sales.
Performance marketing was born from the need to achieve positive ROI. It gives you the ability to measure brand awareness, conversion rates, and more. Moreover, since advertising becomes more transparent, you can build marketing strategies based on proven ROI.
Partner With Aleph It For Your Performance Marketing Needs!
If you are looking to take your business further through performance marketing, Aleph IT can be your most valuable ally! We can give you all the benefits of performance marketing, and offer other solutions to match your business objectives. Our team has over 20 years of experience in advanced Information Technology and Telecommunications. So, you can be sure we are fully equipped to help your business increase revenues through tested online marketing strategies. Browse through our website or contact us to learn more about our services and get consultation and quotes absolutely free!