Performance Marketing: What It is and Why You Need It
For many businesses, advertising dollars are at a premium. Even companies with healthy marketing budgets are under a lot of pressure to account for every single cent that they spend. After all, no business owner or hopeful entrepreneur wants to see their resources go to waste.
If this sounds familiar, then performance marketing may be just what the doctor ordered. This popular and effective digital marketing strategy has allowed many businesses to grow their customer base without exceeding their advertising budgets.
You can implement a performance marketing strategy on your own. You can also partner with a proven digital performance marketing agency like Insights ABM. Our Dallas-based team has helped many brands come out on top.
But enough about us. Let’s get back to the “what and why” of performance marketing so that you can decide whether it is the right strategy for your business.
What is Performance Marketing?
More commonly referred to as performance-based marketing, this style of digital advertising is incredibly effective. When you use this model, you only pay for ads when it successfully achieves a set goal. That goal may be generating a lead, converting a sale, or simply getting a consumer to click on your page.
Perhaps the simplest example of performance marketing is a pay-per-click (PPC) campaign. With PPC, your ads are displayed on search result pages and social media platforms. If a user does not interact with the ad, then you pay nothing. Every time a user clicks on your link, however, the advertising medium bills you.
There are several other types of performance marketing. These include:
- Affiliate marketing (commission based)
- Native marketing (ads that look like Facebook or Instagram posts)
- Sponsored marketing, in which bloggers or influencers post sponsored content
- Search engine marketing, including organic and paid searches on Google
- Social media marketing (Posts and live feeds that earn likes/shares)
All of the examples above incorporate some form of performance marketing. Affiliates, influencers, or companies receive payment if your content performs up to expectations.
While you may not be thrilled about the idea of paying for clicks or other kinds of marketing, it is an extremely affordable advertising method. In fact, over two-thirds of marketers say that paid advertising is an essential part of their strategy.
Why Should You Use It?
Virtually any business can benefit from performance marketing. Whether you are a new startup or an established company, strategically implemented performance marketing campaigns can help you to generate more leads and increase profitability.
Performance marketing includes flexible payment methods that are based on trackable metrics. For instance, your campaign can follow a PPC model, cost per 1,000 views format, or a cost per action. Another common performance marketing payment method is CPL, or cost per lead.
Business owners can choose which metric is best suited to help them achieve their advertising goals. They can also closely monitor advertising expenses to identify waste.
When used appropriately, performance marketing will allow business owners to increase their return on investment for advertising.
Performance marketing takes the guesswork out of advertising. In addition, it incentivizes business partners to put forth their best efforts because they are not paid unless your ad performs well.
Digital Performance Marketing Agency in Dallas
If you are not already using performance marketing to grow your business, you should be! This adaptive and proven marketing strategy will allow you to grow your brand, maximize advertising resources, and become noticed on the digital landscape!
With that being said, we understand that creating a winning performance marketing game plan can be quite challenging. That’s where we come in.
At Insights ABM, we provide our clients with comprehensive services, including web design, content creation, and digital performance marketing. Contact us today to learn more and schedule your free consultation!