The Basics of Performance Marketing
Have you been looking for a way to improve your digital marketing strategy? If so, then you might want to explore the benefits of performance marketing.
Perhaps you’re not quite sure what performance marketing is or how it can help your business grow.
As a premier digital performance marketing agency, Insights ABM is extremely well-versed on the topic. That’s why we decided to create this guide to the basics of performance marketing.
Below, we’ll break down some of the key aspects of performance marketing and how it can benefit your business. Let’s get started!
Performance Marketing…What is It?
As the name implies, performance marketing is an advertising strategy that focuses on results. In the digital marketplace, business owners can measure just about anything.
In performance-based marketing, a merchant has the ability to determine which performance metrics will be tracked during their advertising campaigns. Instead of paying a flat fee for advertising “space,” merchants are only charged when a specific action is met.
For instance, if your goal is to generate leads, then you’d only pay when a visitor filled out a contact form. You would not be charged for clicks or other actions that visitors might take.
What is Facebook Business Manager?
While you can implement a performance marketing campaign on Google, it is far from the only platform available. You can also launch a performance marketing campaign on Facebook or programmatically.
Depending on your goals we may recommend a diverse performance marketing strategy that includes multiple channels, or just a couple. That said, the majority (78%) of organizations that ran campaigns on social platforms performed better than their peers.
Facebook has made it extremely easy to oversee your marketing campaign on its platform. The company has developed a free tool known as Facebook Business Manager. This software allows you to manage billing, build custom audiences, and oversee ad campaigns.
What Are Key Traffic Sources?
Simply put, key traffic sources are digital mediums that have a high volume of users. For example, Facebook and Google are home to the majority of social media users and web traffic, respectively. While we suggest branching out to other channels as well, your initial focus should be on the largest mediums.
As your performance marketing campaign becomes more mature, start looking for ways to expand. If you find that your target audience gravitates towards another social media platform, like Instagram, devote some of your resources to advertising on that medium.
Benefits of Performance Marketing
Performance marketing is one of the most popular digital advertising strategies in use today. There are many benefits to performance marketing, which include:
- Focused on return on investment
- Multiple traffic sources available
- Low risk/high reward
- Can adjust metrics on the fly
- Choose the promotion metric
- Ability to segment and measure your audience
Performance marketing allows advertisers to make every dollar count. This is especially beneficial if your company has a restricted marketing budget. Performance marketing has proven time and again to be the best advertising strategy for growing businesses.
What is a Digital Performance Marketing Agency?
A digital performance marketing agency is a dedicated team of strategists, media managers, and creatives that will oversee every facet of your advertising campaign. They will work with you to learn about your short and long-term goals for your business.
These agencies will continuously monitor your campaigns to ensure that they are performing up to expectations. If it is not, they will adjust advertising content and the promotion model until it creates real results.
Despite the fact that performance marketing is considered to be a low-risk strategy, starting a campaign without the guidance of an experienced team can be quite challenging.
If you want to get the most out of your performance marketing campaign, then you should consider partnering with a proven commodity in the digital advertising space.