What is Performance Marketing?
Do you have a brand or business and are trying to move away from more traditional marketing but not sure where to go from there? Have you thought about making use of performance marketing but are not too sure if it’s something that will be worth your while?
In today’s day and age, traditional marketing methods are all becoming quite irrelevant, although still useful to some businesses. However, since the mass migration into a digitalized world, businesses have had to find a new way to market themselves to the general public, and one of these methods of marketing is performance marketing.
While it is still a relatively new form of marketing, and some may be skeptical to use it, it is proving to be incredibly effective. If there are any businesses that would like to know what it is and how it works, here is what performance marketing is.
What is performance marketing?
As mentioned earlier, the world have moved into and insanely digitalized space, meaning that practically everything these days is happening online, from shopping, to banking, to gaming, to emails, and even checking your home security cameras. This means that people are spending a lot of time on their phones, computers, and laptops, and less time looking where one might find traditional marketing.
Essentially, performance marketing is a broad term for online advertising and marketing programs where an advertiser will only have to pay for their advertisement when an action occurs on their advertisement, including sales, a click, and more. Different marketing agencies, such as Wizard Digital Marketing, will offer different types of performance marketing options from native advertising, sponsored advertising, social media advertising, to search engine marketing.
There are a few risks that come along with this type of marketing including the fact that it might take a while for it to work, or it can become very costly if it is not something you budgeted for with a larger budget.
Why should you use it?
While it is still a relatively new way to go about marketing you brand or business, there are still a benefits that come along with making use of this kind of marketing and adding it to your marketing strategy. Apart from the fact of being able to build your brand with much more ease through a third party of professionals, it allows you reach much larger audiences that you could ever do just on your own, it encourages traffic to your website or store, and even boosts audience engagement, all while reducing the risk of paying exorbitant amounts for marketing and not getting any pay off from it because you only pay when you advertisement has interaction.
Because of the fact that the risks are much lower and typically the costs of this kind of advertising are nearly as much as traditional marketing, it also leave room in the budget to incorporate other things that may be needed.
How does it work?
Within performance marketing, as mentioned earlier, there are different channels through which one can choose to post their advertisements. These being native advertising, sponsored advertising, social media advertising, and search engine marketing. All of these function differently and have different outcomes. The best way to measure the ad impact is with ad analytics.
Native advertising is just blunt online advertising that allows people to click through to your webpage from a different one. Sponsored advertising can be considered another form of native marketing also driving traffic to your website. Social media advertising comes about by advertisings on social media, not only through you timeline, but through sponsored posts and social medias advertising features. Lastly search engine marketing essentially allows for your webpage to increase its visibility in the search engine.
How is it different from affiliate marketing?
Affiliate marketing is slightly different from these other types of advertising and marketing strategies in that affiliate marketing software is essentially a middle man for marketers and advertisers. The affiliate and merchant will agree on specific actions that will end up in a payment for both the affiliate and the marketer which ultimately ends up as a win win situation. Basically, the affiliate will earn a commission for marketing the brand or company.
Although this kind of marketing is new and can seem a bit far fetch, it is quickly becoming popular for businesses all around the world allowing them to reach much larger audiences as well as driving more traffic to their website with more ease and the help of a third party.