Discover the concept of Performance Marketing and learn how to get even better results – WAU
Performance Marketing is a strategy derived from Digital Marketing that is focused on results. For this reason, all decisions are made based on data, which are constantly monitored and tested.
New media, new ways of communicating. None of this is new. For this reason, we have observed numerous developments in marketing in which, today, there are different types of strategies, such as Offline Marketing, Digital Marketing and Performance Marketing.
In this post, we will talk about the latter, Performance Marketing. With this content you will know its definition, how to apply it and what are its main benefits. Check out!
What is Performance Marketing
Most companies today use Digital Marketing. However, not all of them work with Performance Marketing.
Performance Marketing is nothing more than a type of Digital Marketing in which all actions are focused on results based on data analysis. To be even more specific, this type of marketing aims to identify whether the investment made in digital media is paying off.
Through a detailed analysis it is possible to check the performance of each of the ads and their specific metrics. Among the indexes are CPC, CPA and CPL.
Those who apply Performance Marketing use different Digital Marketing tools and platforms to monitor the performance of each of their ads. Only in this way, it is possible to know how to improve your results, because, you will identify the bottlenecks of your campaigns to act quickly in order to correct them.
You already realized that metrics are the basis of Performance Marketing. Therefore, below we will show the main KPIs that you should keep an eye on when using this type of marketing. Check out!
When we talk about online media, we have the concept of impressions, which means how many times your ad has been shown to the public. This metric is separated by channel (Facebook, Instagram, Google Ads).
Something very important about the impressions is that they are not the number of people who saw your ad. This is because the same ad can appear more than once for the same user. Therefore, the number of impressions will be the total number of views.
Your ad being shown to your audience multiple times may not be a metric of success. You need to compare the number of impressions with the clickthrough rate for each of the pieces.
The ad can only be effective if your clickthrough rate is good. Which means that you are getting the ad copy right, which is touching exactly the consumer’s pain.
If the click rate is low and the number of impressions is good, the tip is to do an A / B test, changing art or text. So you realize how best to interact with the public and, consequently, increase your click rate.
In social networks, an extremely important metric is the engagement of each of the publications. This index translates how many interactions a given post has had since its posting. They are considered for calculating the engagement of a post, likes, comments, clicks and shares.
It is not only in social networks that the engagement rate can be observed. You can also check this number in Google Analytics and Google Ads. In this case, the number of pages visited per session and content sharing must be observed. As with social networks, engagement measures the interaction that the user had with the content.
Most Digital Marketing campaigns have as main objective the increase in the number of leads generated. As you may already know, leads are potential customers.
A user becomes a possible customer after expressing interest in receiving a quote from your company, subscribing to your newsletter or downloading rich content, for example.
This number is important to be analyzed for two main reasons: the sales team receives the number of interested parties to reach its sales objectives; and whether your communication is being effective with those who can bring you financial returns.
It is useless to invest in ads and in the production of content, if these are not generating new sales. The greater the number of new sales, it means that your sales and marketing team are aligned. Transmitting and communicating with the consumer in the same way and meeting their expectations.
Paid and organic media
Very common concepts when we talk about Performance Marketing are: paid media and organic media. You are probably wondering what each one has to do with Performance Marketing. More than that, how they relate to each other.
As we mentioned earlier, Performance Marketing is based on data in order to improve – as its name says – the performance of your ads. That is, it is directly related to paid media.
However, one should not forget the organic media. This means that the traffic generated and the searches carried out by your site happen naturally without the need to pay for it. How do they relate? Simple! The greater your organic traffic, the less you’ll need to invest in digital ads.
But that does not mean that you should stop using paid media. But you will pay less to have more impressions, clicks, leads and consequently new customers. That’s because online channels will have confidence in your brand, as will users. To achieve such a relationship between these two mechanisms, the tip is to count on the help of a specialized company.
You may also be interested in discovering these different ways of doing marketing!
Utility Marketing: what is it and how to apply this strategy?
What is niche marketing and why should you care?
Referral Marketing: what it is and how to implement this strategy
Recommendation marketing: why is it so important?
Real Time Marketing: how to use Real Time Marketing?
Performance Marketing Benefits
In order for you to understand the reasons for betting on this strategy, it is essential to have knowledge about the benefits that this can bring to your company. Therefore, we selected the main advantages of implementing Performance Marketing. Continue reading the post and find out!
Having only an internet connection, you can track the performance of your digital ads. That is, executives, managers and marketing analysts can measure in real time the efficiency of a new strategy, for example. This monitoring in real time increases managers’ decision-making capacity quickly and more effectively.
Just as it is possible to measure and analyze in real time, it is possible to make changes at any time in order to optimize the results. For example, if you notice that an ad has a high impression rate, but few people are clicking on it, you can change the copy to increase the number of clicks.
Many marketing strategies result in strengthening your brand. That is, generate awareness. In fact, this is extremely important. However, it is very difficult to know when the customer knew your brand, which of your campaigns that touched you. This is the opposite of what Performance Marketing does.
It is possible to have a tangible result for all the actions carried out within the same campaign. Thus, a very common practice is to compare different channels, ads and campaigns. Showing exactly what is most effective for your business.
Generation of important information
How to implement Performance Marketing
Now that the concept of Performance Marketing is already clear, as well as the advantages of using this strategy, it is important to know the best way to start a successful campaign in your company. We will describe what you can not forget to include when planning your Performance Marketing campaign. Keep reading and find out!
Common sense would say: if you don’t know where to go, any place will do. In Performance Marketing this is also applicable. The first step in creating a successful campaign is to know your goal. It can be a reduction in CPC, number of leads generated, increase in clickthrough rate. Check what makes the most sense and is directly related to your strategic planning.
With the objective defined, the second step is to identify all the metrics that you need to follow in order to achieve what you want. So, if you want to increase the number of leads generated, define a number of leads you would like to reach or a% growth over a given period.
Analyze and relate the history of your presence in the digital environment with your goal. Thus, it will be easier to determine which channels of communication will be used. It is also extremely relevant to take into account the persona’s profile and behavior to see if she uses more social networks or if ads on Google can be more effective. However, it is not necessary to choose just one option.
With the channels defined, dividing the amounts to be invested in each of them is important for monitoring the results. In addition, when deciding the budget, it is also crucial to establish the maximum that can be spent per click and lead, for example. This helps not to extrapolate the amount you had planned for a given channel or campaign.
Periodic measurement of results
Finally, for your Performance Marketing campaign to be effective, you need to measure the results. Define which numbers will be analyzed daily and weekly. In addition, prepare monthly, quarterly and annual reports, in order to have an overview of how the return on investment is.
When monitoring the results, the team should not be passive. Remember that one of the benefits of Performance Marketing is the ability to make changes to obtain better results. So, whenever necessary, make changes to your ads. But, don’t forget to register them in some document. Thus, it will be easier to identify the reason for changes in the numbers, if any.
We live in the era of big data, in which data is crucial for business decision making and survival. With all the indices that Performance Marketing provides, the information that this can generate about your audience is very valuable. So don’t waste time and implement this strategy in your company.
Did you like to know about Performance Marketing? Then continue on our blog and read our post on Service Marketing and increase your knowledge about different marketing strategies!