Performance marketing starts with an outcome the business can measure and afford. For an app that might be a paying subscriber; for a brand it might be a completed order. Define the outcome, its reporting window and the cost ceiling before selecting channels or creative. The practices below are most useful when campaign data connects to retention, margin and customer quality.
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What is performance marketing?
Performance marketing uses measured outcomes to guide campaign decisions. Buying methods and agency fees vary by agreement: CPC measures cost per click, CPM cost per thousand impressions, and CPL or CPA cost per defined lead or action. Agree what counts as a conversion and distinguish an enquiry from a qualified opportunity or sale. Payment terms are a separate commercial decision. Learn More: Performance Marketing Agency
Best practices for performance marketing
No matter which kind of marketing you are utilizing, it is ideal to learn the best possible practices to get optimal results. The following are some strategies that can help you in obtaining the best possible results through performance marketing:
Dynamic Marketing
Dynamic marketing focuses on using a customer’s behavioral data to personalize their experience. This type of marketing uses artificial intelligence to keep track of customer activity. This provides valuable insight into the preferences of a customer, i.e. what are they viewing and purchasing? By using this data, similar and relevant products are recommended to the user through ads. Statistics show that over 90% of customers are more likely to purchase a product from a company or brand that recommends relevant products instead of random ones. A continuous barrage of irrelevant ads leads to customer annoyance and frustration. Showing relevant ads through dynamic marketing is more likely to cause high conversion rates and generate more sales.
Native advertising
Another strategy you can use to make the most of your performance marketing campaigns is native advertising. Native ads are those ads that seamlessly blend into the platform they are featured on. They take on the look and feel of their platform and as such don’t feel like ads. Native ads can be highly advantageous for getting good results from performance marketing, as they don’t disrupt the user experience like banner ads. Research has shown that native ads result in an 18% higher lift in purchase intent compared to banner ads. A/B targeting can be useful to evaluate the performance of different formats of native ads.
Affiliate/Influencer marketing
Affiliate and influencer partnerships should be judged on audience fit, agreed content, measurement and the commercial terms. Some arrangements pay for actions, while others include fixed fees or production costs. Review fraud, refunds and brand risk, and compare the customers acquired by each partner using a consistent reporting window. Learn More: Social Media Influencer Marketing Services
Utilizing the “stories” format
The stories format is one of the most popular formats in use today. Originating from Snapchat, the format now is part of most social media platforms. Stories usually take the form of a set of images that disappear after a 24-hour time limit. Most brands and companies use this format to create a narrative by posting multiple images. They create a hook that keeps people intrigued enough to check out the whole set of pictures. You can use a variety of different tools like filters, effects, stickers, etc. to make them more visually appealing and engaging for your customers.
Track and measure
Keeping track of all of your marketing campaigns is one of the most important aspects of performance marketing. The data obtained from your marketing campaigns help you in determining what’s working and what’s not. Evaluating your gains and losses plays a huge role in making the most out of your performance marketing strategy. The data obtained can be useful to make further improvements to reach optimal results. At Admiral Media, we use the Growth Loop to framework to track and measure results – download our free guide to learn more.
Choosing reputable traffic sources
Choosing reputable traffic sources is very important for your performance marketing campaigns. Picking reputable sources come with several advantages. First of all, people are more likely to trust a reputable source than a non-reputable one. This can create trust issues that paint your brand in a negative light. A good customer-provider relationship is based on trust. Second, it is much better to pick reputable sources as they help you drive more meaningful traffic to your site. Generating low-quality traffic will hurt you in the long run.
Conclusion
Overall, performance marketing helps you target your audience with a more data-driven approach. The data obtained can be useful to optimize your marketing campaign over time. Payment terms are agreed separately from the measurement approach. Compare spend with the quality and value of the customers acquired, and review the provider’s actual scope, fees and reporting definitions. If you are looking to work with one of the best performance marketing agencies in the industry, book a call to learn more about how Admiral Media can help.
