What Is Performance Marketing & Why Should You Use It In 2022?
The marketing world is constantly changing and evolving. Businesses are constantly focused on trying to figure out what people need, how they can offer their services, and which approaches they should take when trying to advertise their companies. Still, as mentioned, the approaches tend to change quite a lot, which means that we nowadays have numerous different strategies and tactics that people actually use when aiming at getting the word out there and making their business more prominent and more successful.
If you think about it carefully, you will realize that we have been witnesses of a lot of changes in the marketing world. For a long time, people have been relying on print media, TV commercials and similar stuff. Things have, however, changed after the appearance of the Internet. It has undeniably taken everything to the next level. So, now we have digital marketing to use to our advantage, as it seems to be much more successful than the traditional methods that you might be used to.
Of course, this does not mean that all of those traditional marketing methods have completely died out and that there is no need for you to use any of them whatsoever. Some of them are still quite strong and can be used for advertising and promotion purposes. This just goes to show that you should not ignore traditional marketing altogether, as it can turn out to be pretty useful.
Yet, as you might already know, you shouldn’t ignore digital marketing either, because there is practically no way for you to succeed without using the online world to your advantage. I suppose, though, that you are already aware of that and that you wouldn’t even dream about taking digital marketing for granted. Here is a question for you, though?
Are you familiar with at least some of the types of digital marketing that you can use to your advantage? While I don’t know the answer to that, I would advise you to learn as much as you can on the topic and make the answer a “yes” if it isn’t one now. So, if you are aware of the different types and strategies, you will probably want to learn more about those, which is what we are here for today. Of course, I won’t talk about all the types and strategies and I will, instead, focus on performance marketing, as it is extremely important. It is defined here.
What Is Performance Marketing?
Since I have mentioned performance marketing, you have probably become quite curious about it and you want to do your best to understand this strategy and figure out if you should use it for your business. Of course, you are most likely also interested in getting familiar with at least some of the reasons why using this technique could be good for your business. Well, I will cover all of those topics for you, meaning that I’ll answer all the questions, starting with the very first and the most basic one. You just have to keep reading.
As mentioned, I will start with the most basic question here. So, performance marketing is practically a digital marketing strategy that is driven by results, as you might have guessed already. To be even more precise here, this is a strategy that allows brands to pay their service providers after their specific advertising goals have been met or after their audience has taken certain actions. Those actions include clicking through, becoming a lead by adding your e-mail address, or buying something.
Since payment is practically based on how well users will interact with the content, we can come to the conclusion that this is a great strategy for all of those companies who are looking to reach their audiences at scale. If you are more curious about how this particular strategy works, let me quickly take you through the process and thus make things completely clear to you. As you’ll see right now, there is nothing complicated about it.
First things first, in order to create a performance marketing campaign for a business, you, as the advertiser, will need to connect to agencies that will be able to design the perfect advertisement for you. Once you do that, you should think about all the different channels that you want to use in your campaign, such as social media platforms, SEO, videos etc., and decide how to place your advertisement. If you thought that now is the time to pay, because you’ve placed the advertisement, then you are wrong.
This is how performance marketing is different than some other forms and types. Instead of paying right away, you will be paying the agency based on how well their ad will actually perform. You start measuring clicks (CPC), impressions (CPM), as well as sales (CPS), and then pay the agency for their work based on those factors. This can certainly be a great opportunity for companies that are building audience and generally for those firms that don’t want to waste money on techniques that won’t work. With this strategy, you’ll be paying for what definitely works.
Why Use It
If you’ve been reading carefully, then you now have the answer to an important question – “what is performance marketing?” and, since you know what it is and how it works, you are most likely wondering why you should actually use it, which is perfectly normal. After all, I’ve already mentioned that no company wants to waste money on something that won’t work. So, when creating a strategy for your business, you are bound to start thinking about why you should use certain techniques over the others.
Well, I am not going to talk about using this technique over some others, because there are undeniably some other great ones to consider nowadays. What I am going to do is tell you why you should use performance marketing in general, which should give you a better idea about why it might be the perfect strategy for you. And, of course, I am sure that you’ll use this technique in conjunction with some other ones, since you understand that you should never put all your money in one basket when marketing is in question and that “fighting on all fronts”, so to speak, is a much better option.
The first reason why you should think about using performance marketing is because it is a very low risk strategy. Since you are only paying for desired actions and only after your audience takes those actions, you won’t have to worry about wasting your money on a campaign that will flop. You basically get what you have paid for, meaning that there are virtually no risks involved here at all. I suppose you do like the sound of that, since all company owners have to handle a lot of risks on a daily basis, and it’s nice to decrease those risks at least on some levels.
Another thing that business owners have to regularly do is worry about their budgets. The great thing about performance marketing is that it is extremely budget-friendly, given the flexibility of the strategy. Should you come across any financial issues, you can always tweak the campaign and make changes. You can also stop it altogether if you find that your goals aren’t being met, or even if you have met your goals and if you’ve run out of budget for a particular period of time. There is definitely something quite appealing in the possibility of ending the campaign whenever you want to do that and thus saving money if you’ve found that you need to do that.
You should also know that performance tracking is quite easy when it comes to this specific strategy. That is probably clear already, and that is another great benefit that you should consider. There are tools you can use in order to check, instead of guess and make estimates, how many leads were converted, or practically measure any other goals that you’ve had.
You might be wondering why easy tracking is that important here, so let me tell you a bit more about that. Basically, when you have the opportunity to easily track the success of your entire campaign, you will also get the opportunity to plan your next campaign much better. You’ll have the necessary metrics and you’ll know exactly how to approach your audience with the aim of achieving the set goals.