Digital marketing has evolved over the years. You have to be adaptable and on the cutting edge in this industry if you want to be successful.
The internet is the world’s biggest advertising platform. Anyone and everyone are on the web these days. That’s why your business needs to be there too.
Just being there isn’t enough though. You must have a finely tuned strategy in place to help you get in front of the right people. And the way to do that will vary based on your business goals and target audience.
Performance marketing has gained traction and is becoming a bigger asset in the realm of internet selling.
Last year, online shopping in Australia increased by 17.2%. In its 2020 eCommerce Update, Australia Post found that online sales and events “are dictating shopper spending.”
The number of potential buyers on the web continues to increase throughout the country. You need to give your business a competitive edge by employing the right solutions. One of those should be performance marketing.
Understanding Performance Marketing
Performance marketing refers to advertising programs where the business (or advertiser) pays a marketing company when an action is taken. The action could be a sale, new lead, download, or booking.
This method provides measurable results, which increases the benefit for the advertiser. They can see performance and adjust as needed to maximise profits.
Performance marketing is also a cost-effective option. The business owner only pays when an action is taken. They know that they are getting value out of the money spent because it’s already converting their audience, even before a paid transaction takes place.
Two of the biggest platforms for performance marketing are Facebook and Google. Advertisers can pay Facebook to show their ads to a target audience. This is usually based on interest. The Facebook network includes Instagram, so people visiting either platform could see your ads.
Google uses keywords to deliver ad content. The advertiser receives a Quality Score and bids on keywords. These two factors determine where your ad is displayed on search results pages.
Your digital marketing specialist can provide more insight into how to effectively utilise both platforms and other methods to increase your reach.
How Performance Marketing Works
Your performance marketing campaign will likely include multiple components to give you maximum reach. It can encompass channels like sponsored advertising, social media, and search engine marketing.
Multiple strategies can be used in performance marketing. The most common include:
- CPM – CPM or Cost Per Impression uses the number of views or engagements the ad receives. For example, the business that is advertising would pay a set amount per one thousand impressions.
- CPC – CPC or Cost Per Click is a commonly used method. This means that the business pays when the ad is clicked. They do not pay for impressions that do not result in a click.
- CPA – CPA or Cost Per Acquisition requires a specific action to occur. The business pays if someone views the ad and clicks, buys something, or completes a form.
Your digital marketing specialist can provide more insight into which strategy you should try in order to get optimum results.
The Benefits of Performance Marketing
Performance marketing significantly increases your company’s earning potential. If you want to get a strong start, you should hire a professional to handle your campaigns. This will ensure that you get the most out of every dollar you put into it.
Why should you use performance marketing to grow your business?
- Performance Marketing is Trackable
Data is essential in making good business decisions. It’s also a big part of performance marketing. Every time your ad gets a response, you will gather valuable information. Those are real statistics, not estimates. You can see where and when your ad was clicked. You can also learn more about the behaviour of your target audience. This data is extremely important when finding ways to make your campaigns even more profitable.
- Performance Marketing Expands Your Reach
Since you will be using different platforms, you will be getting your brand in front of more people. This is a great opportunity to discover pools of potential customers that you may not have had access to before.
- Performance Marketing Lets You Diversify
Diversity can fortify your business. It makes you more adaptable and flexible. Performance marketing favours a diversified approach to advertising. Instead of relying on one sales channel, you can harness the power of many. If one begins to struggle, you have others working simultaneously to continue feeding revenue into your business.
Performance marketing is more important now than ever before. If you aren’t already using it, now is the time to update your strategy. DMKT Performance can help you adopt performance-based methods that let you get more value out of your marketing investment.
