When investing money in business promotion, an entrepreneur wants to get “everything at once”, and this has not surprised marketers for a long time. Turning to performance marketing tools is the best solution when you need to maximize the effectiveness of marketing activities, because this approach makes every ruble spent “work”. Let’s try to figure out what performance marketing is, who it is useful for and how, and also consider an example of its use. The specialists of 360 Media will help us with this.
What is performance marketing
Performance marketing is a brand promotion strategy aimed at achieving measurable results (KPI). For example, the goal of marketing activities may be to increase a company’s profit by 20% in the first quarter of 2024 or attract 50 new clients over the same period. The peculiarity of buy telemarketing data performance marketing is that the business does not pay for the agency’s time, but for specific user actions: clicking on an ad, purchasing a product/service, registering on a website, subscribing, and much more.
Key metrics for measuring performance marketing effectiveness:
- ROI – Return on Investment
- LTV – lifetime value of a customer
- CPA — cost per action (click, transition)
- CAC – customer acquisition cost
- AOV — average order value
Performance Marketing Channels
Performance marketing is a type of digital marketing. This method of promotion uses digital advertising tools, but unlike it, it measures results in specific figures. The main feature of the strategy is the integrated approach, when several promotion channels are combined, and they are selected depending on the target audience (TA) with which communication is built: potential clients, hot users, regular customers. Below we will consider the performance marketing channels that are in demand in the marketing environment.
Contextual advertising
The key tool of the performance method, allowing to work with hot demand: creatives are displayed based on users’ search queries, as well as taking into what does the marketing department do? account targeting. Traditional advertising placements are Google and Yandex. The audience sees ads among organic search results (in search) and on partner sites (YAN, KMS).
Targeted advertising
Ads are shown on social networks, but only to certain categories of users. Targeting technology bab directory allows you to “target” an audience of a certain gender, age, interests, location, and so on. At the moment, targeted advertising has the highest level of personalization. You can effectively advertise on Telegram and VKontakte.
Display advertising
Creatives are often presented as bright banners in the format of images, animations or videos, and are broadcast on thematic sites, mobile applications, social networks. The best results are shown by media in the KMS and YAN. Although the push channel is more designed for a cold audience, performance marketing usually involves the use of retargeting – a tool that returns warmed-up users before they “cool down”.
Native advertising
This is the most natural placement of an offer, albeit with a special mark – “sponsored content” or “paid material”. Combining a native format with promotion in search engines is an example of the best approach to building a performance marketing system.
How to hire a strong marketer for your team?
Guide to Recruiting and Interviewing Employees (12 pages, PDF)
Pick up atTelegram
Pick up atVkontakte
An example of the implementation of a performance strategy
To increase sales, an online home goods store is going to attract customers using performance techniques. We offer a combined launch, which we talked about earlier, because we need to not only bring a new audience to the site, but also retain it, and bring back those who left. Let’s delve into the nuances of performance marketing when analyzing an example.
- Increasing brand awareness – media advertising.
Media advertising remains the best solution when it is necessary to introduce the audience to the product and form a positive attitude towards the brand. To choose the “right” placement locations, we analyze competitors: we look at where their target audience is concentrat and move in the same direction. Media advertising is always spectacular, so we use animation and video.