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Modernize Your Ad Campaign with Performance Marketing

Today I would like to present Melissa Crossman to you. She has written a guest post about performance marketing. I would love to hear your thoughts about performance marketing. Let’s discuss it in the comments…

melissa crossman

According to Forrester Research, online shoppers in the United States will spend approximately $327 billion in 2016, which amounts to an increase of 45 percent from the $226 billion spent this year and a 62 percent increase from the $202 billion spent in 2011. Based on this data, it’s clear that customers are devoting more of their attention to shopping online than ever before, and they aren’t showing signs of stopping any time soon.

Because customers are continuing to use the Web for everything from shopping to socializing, many businesses are exemplifying the axiom “be where the customer is” in their marketing campaigns. Online marketing has become much more sophisticated now than it has been in the past, and all companies should be aware of the many new options they have to choose from for a successful campaign.

What is Performance Marketing?

Taking a revolutionary approach to advertising online, performance marketing strays from traditional methods by operating on a mutually beneficial business model. As its name implies, the technique focuses on performance, and businesses only pay for services that truly deliver results when they choose this method. This marketing technique tends to be more successful than traditional alternatives because it offers a greater incentive for advertisers to deliver an effective campaign, since they will equally benefit from the results. The “performance” of the campaign is determined by a number of different factors, including impressions, clicks, deposits, revenue, registrations, turnover or any combination of these actions.

Contrary to popular belief, performance marketing and affiliate marketing are not one and the same. Actually, performance marketing has a clear focus on results, while affiliate marketing determines a successful marketing campaign in a number of different ways. So, it can be said that performance marketing is a sub-strategy of affiliate marketing, but the latter encompasses a much broader realm of advertising techniques.

Types of Performance Marketing

There are several sub-strategies within performance marketing itself that allow businesses to more effectively match their needs with a campaign that delivers guaranteed results. One of these strategies is known as cost per acquisition (CPA), which is one of the broader techniques that maintain businesses will only have to pay for campaigns that drive customers to action. The exact “action” in question will depend on the client’s personal preference, but can include anything from a sale to signing up for an email subscription. Since this device offers more flexibility, it’s an excellent choice for companies searching for a result that may not be as orthodox.

Cost per lead is another method of performance marketing that strives toward an ultimate goal of convincing customers to sign up either for a newsletter, email subscription, phone list or other marketing tactic within the company that improves the likelihood of a sale. This option is typically a good choice for businesses whose product or service is in a higher price range– such as car dealerships and resort hotels– since customers will spend a longer time researching and weighing their options with these purchases.

Cost per click is another popular method of performance marketing where clients only pay the advertiser for ads that are clicked through by visitors. These click-through rates are often used as indicators of success because they prove that an impression was made, while generating greater interest in the company. Since this choice is much easier to cap at a set price, it would be a good selection for businesses on a budget.

Accommodating Modern Consumers

Because consumers are changing the way they interact with brands, businesses must evolve their advertising campaigns accordingly to accommodate the changing lifestyle and preferences of potential customers. With the incredible efficiency of performance marketing techniques, businesses can make a wiser investment in advertising that comes without risk. When you know your money will only go toward results, there truly is no better deal.

Melissa Crossman lives in Indianapolis with her two dogs.

11 responses to “Modernize Your Ad Campaign with Performance Marketing”

  1. Joseph Hipolito says:

    Hi thanks for the reviewer you post in here this is really helpful to me I learned something really important to me..

  2. Vin says:

    Hey Jens,

    Performance marketing is where it’s at! In my opinion, you don’t actually start “marketing” until you move away from Ad Networks such as Adsense or Infolinks and start setting up CPA campaigns.

    It should be noted, however, that performance marketing may not be the best option for people who generate large quantities of small niche sites or Adsense farms. You’re going to need a steady flow of traffic that includes a singular demographic to see success with performance marketing.

    • Hi Vin,

      I have thought about setting up CPA campaigns, but I have never taken action. To me, CPA sounds very interesting – especially for my clients. When it’s performance based, it’s so much more to gain for the advertisers, and it’s more or less a win-win situation.

  3. Adrienne says:

    Since I don’t really “sell” my services like this I, as the business owner, like this type of marketing so much better. I mean if we get results only then do we pay. Who doesn’t like that method right!

    I think for the business owner who wants to do paid advertising that this definitely is a great route to go. Mainly because you can gear your campaigns for your target audience so that only they will be interested in what you have to offer.

    I personally am all in favor or performance marketing myself. Great post Melissa and thanks for sharing it with us.


    • Hi Adrienne,

      I agree. I have never tried performance based marketing, but as a business owner, and especially for my clients, this type of marketing sounds very interesting. This way we’ll have more control of the results and the costs of producing the results.

  4. Laura says:

    Making Online marketing is become a more sophisticated now than it has been in the past, and all companies should be aware of the many new options they have to choose from for a successful campaign.

    • Hi Laura,

      Absolutely. Things are always changing, and in the world of online marketing, there are so many new things popping up every single day. It’s hard to keep up with everything 🙂

  5. Justin says:

    As I figure things out, CPM doesn’t belong to the performance marketing. That’s why it wasn’t here (sorry, I was thinking about it all the while). There are lots of ways to marketing, have you ever heard of mobile marketing and stuff. Do you think combining those will work efficiently and will give good results?

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