What is Performance Marketing and why is it important?

Performance Marketing is strategising call-to-action digital advertising in such a manner, that would initiate responses from the targeted audience towards the product or the website, such as sales, leads or website clicks. This performance marketing agency implements the model in such a manner, that would align with the interests of both advisers and publishers, as both parties are mutually benefitting from the desired action. Performance marketing is a strategy of digital marketing, and with performance marketing, advertisers only have to pay when specific actions occur, for example, when an action has taken place on their website, like visiting the pages or making a purchase. This strategy is driven by results-based advertising, and this increases the audience reach. Redundant payment is eliminated as advertisers have to only pay for the number of sales they received, the number of clicks on their website, leads or any action that could yield result on their page.

Performance based advertising has more precise targeting, higher conversion rates, and improved return on investment for the pitchers, helping them to measure the success of their advertising campaigns and marketing ideas, and budget according to the needs of the trending content. Performance marketing works when advertisers connect with either agencies or publishers to design advertisements in such a manner, through the use of various tools like search engines, social media and reels, videos, and embedded content and only have to make payment based on the performance of their content.

What are the different mediums of payment in performance marketing

There are different ways used by advertisers to pay for the performance marketing

1. Cost per Action: this is the payment made by the advertised based on the number of times their ad is clicked by the visitors, like for specific actions including the sale, lead, or click. This is an excellent way to generate traffic towards the site.
2. Cost per Impression: advertisers make the payment for thousands of impressions on their advertisement. Impression means the number of times your ads have been viewed. So if 50,000 people have seen your ad, then your base rate is 50.
3. Cost per Mille: this is similar to cost per impression (CPM), but used in the European nations.
4. Cost per Visit: this is the payment made for each unique visitor that has been made to the website
5. Cost per acquisition: this is the payment made by the customers on the completion of an activity, such as a sale or lead
6. Cost per lead: when a profitable action has been made, in favour of the company, advertisers are paid, like someone registered on the website, or signed up for newsletters or signed up for webinars. This helps to be in further contact with the newly registered customer.

Five types of channels are best suited to drive traffic:

1. Banner Ads: the display ads that appear on side of the newsfeed, when you visit a website. They are the display ads which present to you bags, shoes, or any other interesting items, based on your interest. Although increasingly getting blocked by ad blockers, these interactive visualisation and engaging graphics still help to drive traffic to the site.
2. Native Advertising: in this type of advertising, ads are integrated into the content of the platform where they appear, i.e., they match the look, feel and function of the media format where they appear. Native marketing seamlessly blends into the website and appears organically on the platform.
3. Content marketing: this generates thrice the number of leads, educating the audience about the product, providing them with useful information, and utilising your brand as an example, in the context. This focuses on creating valuable content to attract an audience and retain the targeted audience. The brand is established as a thought leader, and the attempt is to convert the targeted audience into customers.
4. Social Media: this is one of the best, most proven platforms to engage with the newer audience, and consistency in posting content on your brand will be pushed further to many people by the algorithm. This extends your reach far beyond the original post.
5. Search Engine Marketing: learning about search engine optimisation is integral if you are into pushing your content’s reach digitally, and having a website that is optimised for search engine marketing is essential to excel in digital marketing. To gain traction organically, have knowledge about content marketing and SEO techniques.

Learnfly offers courses and boot camps by professionals on learning digital marketing, and building your foundation strong, and increasing your earnings. The digital advertising market has grown at a fast pace of 33 per cent annually between 2010 and 2015 and is regarded as the next big thing, and we suggest you get started soon