Performance marketing
The internet has brought many benefits to our world and in many ways changed how we shop, search for information, read news, etc. The global phenomenon has made it easy to connect with countless consumers in no time. The rapid development in consumers' online behavior has also led to an evolution in how companies act and present themselves on digital platforms - this is where performance marketing comes in. With the commercial possibilities of the internet, performance marketing has become an essential part of today's digital marketing. If you want to improve your company's online presence and performance, read on!
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Sounds smart, but what is performance marketing?
Performance marketing is a digital marketing strategy where companies pay only for the results of their ads. This means that you only pay when consumers have interacted with your campaign - for example, in the form of a sale, clicks or leads. The marketing industry today has access to tools that collect data and measure users' actions online, which gives you the opportunity to continuously optimize your campaign to perform better - hence the name 'Performance Marketing'.
Examples of performance marketing
There are several different types of performance marketing. One of the most common examples of performance marketing is affiliate marketing. Here, a commission is paid per conversion, which can be product purchases, customer inquiries, bookings, etc. Affiliate marketing is solely driven by metrics, where a commission is earned for promoting a product or service for another company.
Other examples of performance marketing:
- Advertorials → pay per click or CPM (per thousand impressions)
- Google Ads → you only pay per click
- Influencer marketing → you give a % of the sales they generate
Benefits of performance marketing
As you may have gathered, there are several factors that make performance marketing an advantageous choice. There is, of course, the obvious advantage that you only pay if you get results.
In addition, performance marketing focuses on tracking and data-driven analytics, giving marketers more control over their budgets and ROI (return of investment). The analytics tools also make it easy to keep your finger on the pulse of the campaign so you can continuously adjust and optimize when necessary. The purpose of performance marketing is to create space and opportunity for campaign optimization, which overall lifts the brand across all metrics.
Get your strategy in order with 5 steps
As you could read under examples, there are many different types of performance marketing, which also means that there is no single, definitive way to do performance marketing.
However, there are some general steps in building a marketing strategy that can be used as a guide to move your performance campaign towards success.
Step 1: Establish your campaign goals
Good objectives are essential for any campaign in order to continuously adapt and evaluate it. It is therefore important that you set some relevant objectives before you develop the campaign. For example, you may want to increase your brand awareness or sell more products. The campaign objectives also guide you in the direction of where your ads should appear and who should see them.
Typical digital marketing goals:
- Increased brand awareness
- Increased website traffic
- Increased engagement
- Lead generation
- Increased Sales
Step 2: Choose your digital channel(s)
It's a good idea to use different media for your campaign as it helps to create exposure and reach, which increases the chances of a successful campaign. Here you can consider which channels suit your conversion types and where you are most likely to find your target audience.
Step 3: Create and publish the campaign
Performance marketing includes creating campaigns that are relevant to your desired target audience. It's a good idea to conduct an audience analysis, which you can use the Minerva model to understand their needs and interests and capture their attention. The more you understand your audience and how your product or service can appeal to them, the easier it will be to create effective performance marketing.
Step 4: Measure and optimize your campaign
Once the campaigns are live, this is where the final work takes place. A performance marketing campaign starts generating data the moment it goes live. It's then up to the marketers responsible to analyze and monitor metrics to determine which channels and sources of traffic are performing best.
Step 5: Manage potential pitfalls
As with any campaign, there are potential challenges and pitfalls that you should consider when planning to use performance marketing.
Challenges in performance marketing can be, for example:
- Fire safety
- Compliance-related issues
- Protection of personal information
- Click fraud and bot traffic
One way to reduce potential problems is to utilize your resources exclusively on quality performance marketing tools, as issues like privacy will be handled responsibly and reliably here. This is where being associated with a digital marketing agency is particularly beneficial.
Amplify is your performance marketing agency in Copenhagen
This is a brief introduction to what performance marketing is and why it's particularly useful when working with digital marketing. If you would like to get started with performance marketing, where you only pay for the results you experience, don't hesitate to send us a message.
At Amplify, we are a marketing agency that deals with SEO, Google advertising and additional digital marketing - we are also experts in creating digital visibility and reaching the target audience through both Facebook advertising and SoMe marketing. Contact me or one of my colleagues at Amplify on tel. +45 70 60 50 28 or via email at info@amplify.dk.
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