Benefits of Performance Marketing
If you have participated in planning a marketing campaign, you likely understand the importance of setting clear goals. These goals may include improving conversion rates, boosting website traffic, or generating fresh leads.
Regardless of the goals of your marketing campaign, it is essential that you meet them if you want to continue to grow your business.
When it comes to reaching advertising goals, few methods are more effective than performance marketing. This increasingly common advertising strategy is a sure way to give your business the boost that it has been looking for.
What is Performance Marketing?
Simply put, performance marketing is similar to commission-based sales. Instead of paying a flat rate for digital ads, advertisers are only charged if a placement delivers results.
For instance, if your goal is to increase web traffic, then you would create a campaign in which you only pay for clicks that lead consumers to your page.
Perks of Performance Marketing Strategies
Performance marketing strategies are ideal for use in digital advertising. It is nearly impossible to use performance marketing with other advertising mediums, like television ads.
While these more traditional advertising methods are still in use, they make up a smaller share of marketing expenditure every year. In fact, digital marketing will make up 46% of global ad spending in 2021, according to Oberlo.
Let’s take a closer look at some of the benefits of performance marketing, which include:
The average business owner has a set marketing budget. Unfortunately, traditional digital advertising will often exhaust this budget without achieving tangible results. In contrast, performance marketing campaigns are much easier to budget for.
When you’re planning your performance marketing campaign, you will have a chance to identify your goals. You will also be able to determine what your ideal cost per click, lead, or sale is during the pre-marketing phase. This ensures that you can stick within your budget while also creating an effective marketing campaign.
Only Pay for Results
The biggest draw of performance marketing is that you only pay for results. Your campaign will be focused on specific performance metrics, such as leads, sales, or revenue generated.
With that being said, it is essential to pick a metric and hold fast to it. Do not switch metrics mid-campaign, as this can cause you to fall short in each category.
With the help of tools like Google Analytics, you can track every aspect of your performance marketing campaign. The results are given in real-time, which means that you do not have to wait for daily or weekly performance reports.
Best of all, you can check your advertising expenses and the number of leads or revenue generated with the press of a button.
By tracking key metrics, you can assess your return on investment. This allows you to adjust your course and optimize your efforts as needed.
Make Real-Time Shifts
While it is important to stick with a specific metric during the run of a performance marketing campaign, you can alter your ads as needed in between runs.
For example, if a particular headline seems to resonate with consumers, then you can incorporate it into other content to see whether your conversion rates improve further. Continue to monitor your campaign and leverage high-performing content to optimize results.
Why Partner with a Digital Performance Marketing Agency?
As you can see, there are many benefits to performance marketing campaigns. However, these campaigns also require continuous monitoring if you want to get the most bang for your buck, which is why many businesses put their trust in a digital performance marketing agency like Insights ABM.