In an ever-evolving market, consumers are becoming increasingly aware. Marketing strategies can be cost-intensive with no guaranteed returns. In such scenarios, performance-based marketing offers a sense of security to consumers. Performance marketing refers to online marketing programs in which results are driven by pre-meditated actions. It is carried out with the objective of fulfilling specific goals. Generally, the payment for campaigns are only made upon the achievement of certain targets; such as sales, leads or clicks.
How is performance marketing different from the rest?
Performance marketing has seamlessly overturned convention by allowing investments to follow results. It is the surest metric for a cause and effect relationship between the ad and the consumer. It facilitates campaign optimization based on near-real time performance. Only successful executions and transactions are grounds for fulfilling determined investments. It is an ideal technique for smaller business and for those looking to avoid high marketing costs. However, that being said, it envelops a wide bracket of payment scales. Campaigns are designed in a manner that both retailers and affiliates benefit from it. The return on investment (ROI) is easy to measure and can be tracked conveniently through various tools.
Which consumer segment does it cater to?
Largely online in character, performance marketing is ideal for those who want to run their campaigns over the internet. Companies can range from small scale e-commerce websites, retailers, dealers, to corporates dealing with FMCGs, and everything between. It is especially essential when a consumer wishes to focus on inspiring action over creating awareness. The measurability of advertisements aids this even further. Along with offering a unique proposition to both the parties involved, performance marketing boosts the development and use of mobile applications, content marketing, social media marketing and niche marketing. There are various types of performance marketing which can be easily tailored to meet the requirements of the consumers. Cost per Thousand (CPM), Cost per Click (CPC), Cost per Sale (CPS) and Cost per Acquisition (CPA) are some examples of the same.
How should the campaigns be designed?
Filled with creativity and inadvertent fun, performance marketing campaigns are led by defined marketing goals. The campaign is the sole driver for result and success of both, the advertiser and the consumer. Innovative and unique, it has to be highly engaging and set apart from the rest. However, the campaign needs to align to the goals perfectly. Progressively, each action step within the campaign must contribute to the fulfilment of targets. It also needs to set tone for future campaigns and credibility, and by extension, for the overall business. Social media outreach and website traffic are the most convenient ways in which the success of the campaign can be monitored.