Performance marketing is digital marketing that is driven by results. This is the best option for companies looking to reach large audiences. It’s ideal because payment is determined by how users interact with the content. When advertisers work with publishers or agencies to place ads for their company on various performances marketing channels, such as search engines, social media, video, embedded content, etc,. performance marketing is when they connect with them. These advertisers don’t pay for advertisements in the traditional manner. Instead, they pay according to how well their ads perform, such as clicks, impressions and shares.
Four Effective Types Of Performance Marketing
Let’s talk about four types of performance marketing that are effective and should be part of your performance marketing.
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Social Media
You can target your audience with social media platforms. Unlike Facebook and Instagram, Pinterest has a large user base. However, Pinterest is a discovery platform that lets shoppers discover niche interests. LinkedIn keeps professionals connected while Snap chat, TikTok, and Instagram draw younger users. There are many options for marketers when marketing on social media platforms. If you want to increase your brand awareness and traffic, you can reach your target audience on the right platforms. You can track social media performance by clicking, sharing, commenting, clicks, and sales.
- Likes
- Comment
- Impressions
- Shares
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Native Advertising
Native ads are no ads. They adapt to the function and form of the site where they are placed. They can be adapted to the context of the user’s reading and fit dynamically. Native advertising offers performance marketers re targeting possibilities at scale. They can reuse content, educate, inform and target customers sequentially once they have captured their interest and intent. Pay per impression and pay per click is the most popular metrics for native ads.
impressions Brand Awareness Viewable:
- Unique visitor: Click-through rate
- Behavior: Page per session, Bounce rate
Conversion: Downloads, sign-ups, sales
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Affiliate Marketing
This is performance-based affiliate marketing where a company rewards associates for specific actions. These actions could include traffic, leads, sales, or free trial users. This is how it works. Affiliate marketing starts when an affiliate shares a product/service via their platform (blog, podcast, or social media). Affiliates can earn a commission on any purchase made through the platform. These are the main performance indicators for affiliate marketing.
- Click-Thru Rate
- Conversion Rate
- Cost per Action
- Average Order Value
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Search Engine Marketing
This is also known as paid advertising. It involves using search engine result pages to increase your brand’s visibility. This allows you to reach people who search on Google or Yahoo. SEM refers to paying money to have your ads appear in search results. The brand targets keywords searchers might use. The brand’s paid ad will be displayed when users type these keywords in the query box. Search advertising platforms only charge users for clicking on specific ads. CPC and other KPIs search engine marketers use include:
- Ad impression
- Engagement
- Conversion
- Click-Through Rate
You must remember that different companies use different metrics to measure their SEM campaigns. Performance is one measure, while performance marketing agencies are another.
What are the benefits of Performance Marketing?
Performance marketing is a great way for advertisers to track their results and compare them with their expenses. Every transaction depends on the actions taken by prospects. Only pay for the ones that succeed. Performance marketing measurement is not the same as traditional marketing. It relies entirely on the results.
It is simple to track performance marketing. These are just a few of the other benefits.
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Expand your reach
Performance marketing allows you to reach more people with your message than traditional advertising. This will enable publishers to work with social media influences or affiliates to accomplish a single goal. This goal is to promote your brand and product to their audience. This allows you to reach niche markets that you might not have considered.
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Greater Flexibility
Performance marketing allows for flexibility and serves obvious purposes. The numbers will determine your approach. You can adapt and react in real-time if a marketing strategy does not work. A specific headline might result in a higher CTR than others. You could use the same headline across all digital channels to replicate the effect.
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Convenient Planning Process
Performance marketing is all about results. Planning is simple. You need first to determine your goals then set a reasonable CPA. This will enable you to establish the most cost-effective budget possible for your campaign quickly.
