Redefining Performance Marketing
The goal of any marketing campaign is to generate leads, earn new customers, and increase sales. However, developing a winning marketing strategy can be quite challenging. The stresses of marketing are magnified if the advertising team is working with tight budgetary constraints.
Fortunately, there is an incredibly effective solution known as performance marketing. Businesses can implement this strategy on their own. They can also partner with an experienced performance-based digital marketing company like Insights ABM. Teams like these can oversee an entire performance marketing campaign to ensure that your plan is carried out flawlessly.
You may be wondering, “Why exactly does performance marketing need to be redefined in the first place?” Below, we’ll answer this vital question. Our experts will also layout why performance marketing is so popular and how it can make a lasting impact on your business.
What is Performance Marketing?
Simply put, performance marketing focuses on measurable key performance indicators (KPIs). It is a trackable advertising strategy that allows marketing teams to account for every cent that they spend on advertising and its return.
When they are advertising through traditional methods, companies must pay for “real estate” on a website, during a commercial break, or on a billboard. The business pays out whether that advertisement ever generates a single lead or not. This can be quite inefficient, especially in the digital marketplace.
In contrast, when they’re using performance marketing, advertisers only pay when content creates results. For instance, you might pay out for every user that visits your website, leads, sales, or revenue. However, you will not be billed for the thousands of users that see your ad and keep on scrolling.
Why Redefine Performance Marketing?
In the past, performance marketing was viewed as a means of achieving rapid but unsustainable growth. It was used as a tool to boost leads or generate interest in a new product. However, performance marketing campaigns of old were a bit too one-dimensional for the modern consumer.
If performance marketing is to survive the test of time, then it must be redefined. Performance-based digital marketing companies are looking to do just that.
As part of this evolution in performance marketing, modern strategies must account for the entire consumer journey down the sales funnel. In addition, it must focus on building a brand and developing customer loyalty.
A multi-faceted approach to performance marketing will provide businesses with both short and long-term results.
Performance Marketing in 2021
The biggest draw of performance marketing is that it allows business owners to meticulously track every aspect of an advertising campaign. While it is certainly important to measure conversions, leads, and clicks, this data may not provide an accurate assessment of a campaign’s success.
In the future, performance marketing plans will likely be much broader in nature. They will include tactics geared towards increasing brand awareness and connecting with new prospects. Performance marketing must also address customer retention, which is essential if you operate in a crowded industry.
Remember, everything you do as a business owner is based on measurable performance. This includes the partnerships you forge, the ads you pay for, and the employees that you retain.
Developing a Winning Performance Marketing Strategy
When you’re implementing your performance marketing strategy, make sure to meet consumers where they are. Only 32% of eCommerce sessions were generated through paid search.
You cannot afford to ignore the other 68% of your audience by failing to use other means of communication. This means relying on multiple channels, including your website, digital advertising, and social media platforms.
The consumer journey down the sales funnel is no longer linear. Web users will likely interact with your company on multiple platforms. They may see a paid ad on Google and then encounter your business again on social media, so it is important that they are presented with high-quality content and a consistent message every time. Are you making the most of each engagement with your target audience?