Performance Marketing is a type of digital marketing. A brand chooses agencies for marketing services with set goals in mind and only when they are met, they get paid These goals can be critical metrics such as sales, clicks, and leads.
A marketing agency has the potential clients that the brand wants to reach out to hence, they pay to access that audience. The audience is available on different mediums like social media platforms, search engines, emailers, and more. Once the advertisements and content pieces are live, agency keeps track of and analyses the performance. To receive the payment, the campaigns must achieve the set targets.
Types of Marketing Campaigns Under Performance Marketing:
The brand’s expected outcome from the campaigns helps determine the types of performance marketing, such as goal-based and action-based campaigns.
If there is a certain target to be achieved from the campaign, eg: getting ‘x’ people to see the ad, then it will qualify as a Goal-based campaign.
The latter aims at an accomplishment of an action by the audience, eg: visits to the website.
Furthermore, Goal and Action based advertisements constitute:
Acquisition Campaign: When the brand pays for banner ads, social media advertisements, and more to get more clients.
Engagement Campaign: Through social media ads and emailers, the audience engages with the content of the brand.
Conversion Campaign: When the brand pays to convert a lead into a customer by retargeting.
The Key Metrics That Determine The Performance:
Apart from tracking reach, impression, and engagement rate, some fundamental metrics that help a brand find out how well the campaign has performed are:
Cost Per Click (CPC): A click on the advertisement constitutes CPC and the brand pays when this action takes place.
Cost Per Lead (CPL): Once the advertisement is live, if leads are captured through it, the brand pays for this action.
Cost Per Action (CPA): The marketing agency like WizpMedia introduces the product or service to the audience for them to purchase.
How To Start Performace Marketing For Your Brand?
First, the brand must decide on the goals they need to achieve. These goals must be specific, measurable, attainable, relevant, and time-bound (SMART).
After planning and strategizing this, a channel must be chosen, eg: social media, emails, search engines, etc.
Third, to determine the marketing agency – one’s who will provide you with the target audience you need and help you with resources to set up the campaigns.
After taking the advertisements live, the last step is to track and analyze the ROIs of the campaigns.
Why Should A Brand Use Performance Marketing?
Performance Marketing helps to increase the reach as the marketing agency has the audience you would want to target.
It also leads to better budgeting and allocating resources to future campaigns. As one can identify successful content buckets and channels based on performance.
And, it provides a low cost for acquiring new leads through affiliate marketing and advertising to an already established target audience, and the acquisition cost reduces.
Just a decade back, brands would pay upfront to marketing agencies despite not knowing how the advertisements are performing. This would not work in today’s digital world. Hence, performance marketing is the new and only way for brands. And, Wizpmedia helps brands achieve their marketing objectives.