4 Reasons to Choose Performance Marketing

They act as guidelines for business owners to achieve their desired goals and diversify their business

Recognizing effective marketing strategies is essential to expanding your business. They enable you to tap and connect with your target audience, build brand recognition, cement brand affinity, and influence consumer behaviour. They act as guidelines for business owners to achieve their desired goals and diversify their business.

One such advertising strategy that is a smart move in today’s digital world and which is outperforming other marketing models is Performance Marketing. This type of marketing, as the name suggests, is based on performance and has impacted the way businesses advertise and sell their products and services. 

For those who are uncertain about what performance marketing can do to a business, and are willing to attempt, read on to know what it is, how it works, and its benefits.  

What is Performance Marketing?

Performance Marketing is driven by results where retailers and service companies pay a commission to publishers (also known as affiliates) when certain actions are fulfilled such as a click, sale, impressions, or lead. These goals can be achieved on various performance marketing channels such as social media, search engines, videos and more.

The reason why performance marketing is unique is that it gives more power to advertisers and marketers alike – giving them more control than ever as compared to traditional marketing channels. If you are a marketer yourself, you would appreciate the knowledge and freedom of not only seeing how your marketing spends impact your business, but also limiting these spends to what actually works for you. 

Contrary to popular opinions, SEM and PPC aren’t the only types of performance marketing. Programmatic Display, content, social media, videos, as well native advertising also come under this umbrella.

Some reasons why you should consider Performance Marketing

One of the most important reasons you should consider performance marketing is the fact that it adds so much more transparency to your marketing efforts. With clear ROI on every dollar spent, you can make better strategic and budgeting decisions. Here are the top 4 reasons that set performance marketing apart from other types of marketing:

Data Tracking

The most important benefit of performance marketing is that it enables you to measure results directly with the help of metrics that include the number of impressions, clicks and conversions. These metrics can be used to track activity performance and measure campaign success – allowing you to fine tune your strategy and budget till you get the desired results. The data-backed decisions enable optimization of campaigns based and are likely to lead to a higher success rate of performance marketing campaigns as compared to its relatively hazier alternatives.

Improved Insights

Performance-based marketing offers detailed insights into how your marketing strategies are performing at a granular level. For example, you can monitor sales funnel progress, CTA engagement, or social media performance. When you have more information at your end, it becomes much easier for marketers and business owners to form accurate, data-driven decisions to stimulate growth in the long run. Moreover, the use of digital marketing tools or software can help you monitor all this data at one go from a single dashboard, enabling you to have a broader view of the overall campaign success. 

Expanded Reach

There is a performance marketing tactic for practically every digital channel and format – text, visual, video, audio, search and display. This not only allows you to expand your reach across different digital mediums, but also opens up the possibility to precisely target newer and relevant audiences. For instance, you could target audiences that would otherwise ignore your ads via native advertising and video marketing. You would thus be able to precisely target your audiences across the wide digital spectrum.

Lower Risks

With increased transparency and insights, you would have significantly lower risks of failure and wastage with ad spends. As decisions are made based on accurate data that enhances the success rate of campaigns, you are pretty much sure you aren’t wasting your money on a failing campaign. You only pay when you earn the specified results – such as a click, lead, view and so on. Publishers also ensure that your ad placement is aligned with your pre-defined parameters, so as to continue getting your business. This way, you are also boosting your ROI over time, and taking your business where it should be going. 

With all of these perks, it is no surprise that performance marketing is becoming the new gold standard in the world of marketing. It has raised the bar for what is achievable and is helping everyone involved in the process – including the target audiences as they get more relevant communication at the time that they are seeking it. With the future of digital marketing becoming brighter by the year, leveraging performance marketing channels can help you scale up your advertising efforts to fulfil your company's needs without going broke.

Mr.Zuber Sheikh, Managing Director, Rank My Business

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