Imagine spending only on campaigns that are successful?
Well, it’s possible, if you give paid media a shot. Let us break it down for you.
Performance Marketing or Paid Media is essentially “results-based” marketing. Rather than paying for marketing services monthly or annually, you only pay when you get the results you’re looking for.
What kind of results are we talking about, though? Well, they could be anything measurable, including:
- app installs
- ad views
- page clicks
- demo downloads
- ad clicks
- social media engagement
- sales
Marketers can use these results to make quick decisions, whether it means changing the marketing strategy, adjusting keywords, or experimenting with new ad formats. In short, it drives business growth. Performance marketing can also help you devise long-term strategies. For example, tracking page views and social media followers can show whether you’re reaching more people online.
Having said all this, why all the hype behind performance marketing?
Measurability
Because it simplifies parameters that measures results. Marketing heads can measure a campaign’s success by evaluating key metrics and business owners can decide where to focus their marketing efforts.
One can easily get a comprehensive view of the sales funnel progress, social media ad performance and CTA engagement. More information means more informed decisions being taken. Additionally, if one is hands on with digital tools and software, one can monitor all this data using a single dashboard!
Transparency
As a marketer, you know what the need is, and you know what needs to be done to meet client expectations. You benefit from clear, transparent payment terms. Unless those desired results are achieved, you don’t spend a dollar.
Clearly Performance marketing has a lot of benefits. But, lets look at some downsides too!
Losing sight of priorities!
Performance marketing is all about fast results. One can easily get distracted with the short-term goals like impressions, ad clicks etc. and lose sight of the overarching business goals. Unless you stay focused on the larger goals, its easy to get lost in obtaining quick ROI which may not translate to long term business profitability.
Beware of Increased Fraud Risk
Performance marketing may give you the illusion of quick results. In other words, there’s an increased risk of “ad fraud.” For example, some unethical marketers might use bots. These bots perform ad clicks, which generate false traffic or fake impressions. These practices are not easy to detect, and they can seriously damage your marketing efforts. You end up paying for fraudulent results that get you no closer to reaching your marketing goals!
Should you use Performance Marketing?
Here are some simple ways to see if Performance Marketing falls within your brand’s overall business goals.
Performance Marketing is Within Your Budget
Aligning your budget with your brand’s developmental stage is crucial for strategic marketing success. Emerging brands benefit from prioritizing funds for building brand awareness generating leads. Established brands should strategically invest in media to maintain visibility and attract new customers, ensuring sustained market prominence.
Your Company is Well-Established in the Digital Domain
If your brand has already established a digital presence, then strategic entry into different paid media channels is essential. Tailored ads on platforms like social media and search engines, coupled with precise targeting, amplify brand visibility. Prudent budget allocation is paramount, ensuring a balanced approach that maximizes impact without unnecessary expenditures.
A well-managed budget, combined with a data-driven strategy, optimizes campaign efficiency, and reinforces your professional digital presence.
Your Business Needs Fast Results.
While the allure of immediate results exists, it’s essential to note that performance marketing doesn’t guarantee instant outcomes. Success hinges on a well-allocated budget, a strategic marketing plan, and judicious use of paid media. Sustainable revenue is achievable, but it unfolds over time as these elements harmonize and mature.
Performance marketing stands out for offering precise, real-time data that proves instrumental in making judicious and effective business decisions. Performance-based marketing is ideal for those with a strong digital presence and future ad plans.
Start by setting a clear goal, knowing your audience, and launching your campaign. Monitor metrics, continuously test, and watch for issues like click fraud. Remember, while it offers benefits, don’t let short-term wins distract from your long-term objectives.
If you’re still not sure whether performance-based marketing is right for you, check out Changing Tree’s complimentary consulting service facilitated by our CEO for additional guidance.
