Performance marketing is becoming more popular. However, not everyone knows what this marketing solution is. Therefore, in this article, we will tell you what performance marketing is, what its main advantages and disadvantages are, and how it works.
Performance marketing is a service aimed at achieving specific business results using a set of digital tools. It provides for regular optimization of advertising campaigns to determine which advertising channels are the most effective in achieving your goals. Thanks to this, the invested money will go to more successful campaigns.
The main idea of performance marketing is that the customer pays only for specific actions, such as, for example, sales, registrations, or clicks on ads.
Let’s look at a specific example. The customer needs an Instagram page to increase product sales.
Performance marketing analytics is its foundation. The customer and the contractor agree on the main performance metrics by which the success of the advertising campaign will be evaluated. Among the most common indicators:
Work on any project using digital performance marketing includes the following steps:
The main advantages of performance in advertising include:
At the same time, performance marketing is not the best option for marketing campaigns focused on delayed or hard-to-measure results. For example, it is difficult to assess the impact of branding on sales separately from other marketing activities, so sometimes using the principles of performance advertising is not the most effective solution.
Performance marketing is the perfect tool for businesses that want to pay only for specific results. We note that such services are provided only by large marketing agencies that have the ability to include SEO, SMM, contextual advertising, or a combination of other digital tools in performance marketing.