The notion of performance marketing is appearing more and more frequently among marketing professionals. marketing and business owners. But what does it really mean and how can it be used in practice? Today I’m going to focus on performance marketing: what is it really about and why does it deliver results?
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Performance marketing what is it?
Performance marketing is a marketing strategy that involves paying for specific, measurable results. In other words, you only pay for what really works – hence the name performance marketing. This can include various actions, such as clicking on a link, registering for a the newsletter , purchase of a product or other specific customer action.
How does performance marketing work?
The main principle of performance marketing is payment for results, not for the mere display of an ad. In practice, this means that the advertiser pays only when a user performs a specific action, such as clicking on an ad, placing an order or registering on the site.
With performance marketing’s focus on measurable results, companies have full control over their advertising budgets. They can closely monitor the effectiveness of their campaigns and adjust them on the fly to achieve better results.
What are the benefits of performance marketing?
Performance marketing offers many benefits to companies. Here are some of them:
- Budget control: you pay only for specific results, so you have full control over your advertising budget.
- Measurability: with performance marketing, you can accurately measure the effectiveness of your campaigns and optimize them on an ongoing basis.
- Optimization: performance marketing allows you to constantly test and optimize your campaigns to achieve the best possible results.
What does a performance marketing agency do?
The performance marketing agency specializes in creating, managing and optimizing performance marketing campaigns. It handles all aspects of the process, from identifying campaign goals, to creating and running ads, to analyzing and optimizing results.
What is performance marketing: examples
Performance marketing encompasses a broad spectrum of marketing activities that can be tailored to a company’s specific goals and needs. Below are examples of some forms of performance marketing:
- Paid search engine advertising (PPC): PPC, or “pay-per-click,” is a form of advertising in which an advertiser pays for each click on its ad. Google Ads is the most well-known PPC platform, allowing advertisers to reach users who search for specific products or services on Google.
- Affiliate marketing: in affiliate marketing, companies pay affiliates (called affiliates) a commission to redirect users to their websites or to generate sales.
- Social media advertising: platforms such as Facebook, Instagram, and LinkedIn offer various forms of advertising that allow advertisers to pay for specific user actions, such as clicks, likes, shares, or conversions.
- E-mail marketing: with e-mail marketing, companies pay for specific actions by recipients, such as opening an e-mail, clicking on a link or making a purchase.
- Loyalty programs: some companies use performance marketing in their loyalty programs, paying customers for activities such as repeat purchases, recommending products or services to friends, or active participation in the brand community.
What all these forms of performance marketing have in common is that you only pay for specific, measurable results, allowing you to accurately measure the effectiveness of your campaigns and maximize your marketing ROI.
A well-chosen performance marketing agency has experts in various fields, such as SEO, PPC, email marketing and social media marketing. As a result, it is able to provide effective, integrated marketing campaigns that deliver real, measurable results.
In summary, performance marketing is an effective, efficient and measurable marketing strategy that allows companies to maximize their return on marketing investment. If you want to take advantage of the full potential of performance marketing, consider using an experienced performance marketing agency.
