What is Performance Marketing?

Performance Marketing or Results Marketing is a system in which the advertiser pays for the results obtained in the digital medium.

Companies’ marketing departments increasingly trust performance optimization agencies because they know that they can achieve their objectives with their investment. Other times, the factor remains in the air, with different types of more traditional marketing agencies. They create a strategy for the customer but do not ensure results.

These objectives are usually related to obtaining a response from the impacted audience: such as a subscription, alike, a forwarding, a registration, or the generation of a sale, among others.

In performance marketing, you no longer pay per click or impression but rather per result. The factor determining whether a campaign has gone well is actual data collected through a tracking system that stores clicks, subscriptions, sales, or conversions in real-time.

Characteristics of Performance Marketing

Many advertisers still doubt online performance marketing because it is a relatively new term encompassing all marketing organizations.

Some people confuse performance marketing with associate marketing.

This second concept is, in reality, a tool and technique available to marketers to develop their work in performance marketing. Some people even relate it to artistic performances without having anything to do with them.

Unlike branding campaigns or campaigns seeking notoriety, these movements are launched in a digital environment (increasingly in mobile formats) to obtain measurable results. Universal and conversion cookies or pixels may be used to track user actions.

Advantages of Performance Marketing

Easy to Measure the ROI of actions.

The typical CPM and CPC models offer a cost linked to results, but their real relationship with sales is much more diffuse. In the case of CPM, we only know the number of times a particular ad has been shown, although we cannot even guarantee that a natural person has seen it. In the case of CPC, we can know who has landed on our site after clicking, but this KPI does not tell us what happens next: has the consumer left the page without reading it, or has he continued through the funnel advertising? Instead, by tracking with cookies or pixels, you can know exactly what each user is doing on a landing page or the maker’s website.

Conversion-Based Goal Line.

These goals can be sales or centrals. This will allow us to recognize the real benefit of the entire online marketing strategy. For example, 1,000 conversions to purchase with an average value of €50 or 5,000 downloads via the form with a 20% chance of a sale. This way, we can faithfully assess the return on investment.

Major Optimization.

Refining measurement helps us optimize campaigns constantly. If we know which actions give better results, we can promote these, direct the investment to them, and discard the activities that do not convert. In addition, since technology can measure results in real-time, it can also help us establish continuous controls that refine campaigns or stop them. The result is a constant improvement in brand advertising.

Opportunity Costs Eliminate.

This means the advertiser no longer has to invest a budget in campaigns without knowing the results. With performance marketing, the risk is minimal, estimating how much each campaign will cost.

Manage the budget for digital advertising.

Wide Variety of Channels.

Performance [marketing] strategies unfold their potential through various online media, such as social network advertising, email marketing, content marketing, or display.

Reasons to Deploy Performance Marketing Actions

Do you still have doubts? Therefore here are 5 reasons for you to carry out performance marketing actions from this moment. They are taken from a  Cake Marketing  study, and they will surely convince you:

  • It is the fastest-growing segment of digital advertising and [marketing.]
  • For every $1 invested, you get a return of $11.
  • 93% of companies that have hired a performance marketing agency or apply performance optimization internally in their marketing department consider it optional.
  • Mobile strategies create new income opportunities by converting visits and PPA (pay-per-action) leads.
  • Thanks to artificial intelligence technologies, performance marketing will become more effective. This will help us better understand how to increase ROI and optimize campaigns in real-time.

Critical Recommendations for Performance Marketing

Caption recently conducted  The New Normal: Performance Advertising Drives Effectiveness study among 152 marketers from the US, UK, Germany, and France. The most outstanding recommendations that can be extracted from the report are:

  • Applying presentation marketing strategies helps separate physically competitively at a time when this discipline is still developing, and its introduction in our country is growing.
  • Advertising companies execute presentation marketing in their strategies because it proposes an improved asset return.
  • It is going from the presence of a novelty to being the norm. 47% of marketers surveyed carry out retargeting actions (49% in eCommerce), and 54% focus on campaigns that deliver personalized advertising to their consumers.
  • In 46% of cases, performance [marketing] actions are multi-device and multi-channel, including mobile web, mobile in-app, email, and social platforms.

How We Understand Performance Marketing at Cyberclick

We have experience and several success stories in performance [marketing] strategies focused on attracting traffic. This lets us affirm our global vision of the digital environment. This helps us advise our clients on the best approach they can develop, regardless of their sector or product.

Our way of conceiving work is 100% analytical, so all our suggestions will be based on the client’s main KPIs. It is about the advertiser achieving his objectives through the appropriate channels. And to the maturity of the product or service. Always seeking to do it at the lowest possible cost and with the best ROI.

Before and during the launch of any recruitment campaign, we continuously perform A/B tests to optimize messages, CTAs, segmentations, and images until we find combinations that give us the desired results according to the objectives set.

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