PERFORMANCE MARKETING: What IS PERFORMANCE MARKETING AND HOW DOES IT WORK?
Performance marketing is a digital way of marketing gaining popularity nowadays.It is the best suitable for ecommerce business to increase their revenue. Let us know in brief about PERFORMANCE MARKETING: What IS PERFORMANCE MARKETING AND HOW DOES IT WORK?
What is performance marketing?Performance marketing refers to a form of digital marketing in which brands only pay marketing service providers after their business objectives have been met or when specific actions have been taken, such as a click, sale, or lead. In other words, it is performance-based marketing.
Instead of paying in traditional way for running ads the brand pay to agency according to the performance of ads like clicks,likes,impressions.
Performance marketing is a digital marketing strategy result driven. Let us know PERFORMANCE MARKETING: What IS PERFORMANCE MARKETING AND HOW DOES IT WORK?
HOW DOES IT WORK?A performance marketing strategy relies on three keys:
The advertiser (like a retailer, merchant, brand, etc., who is looking to improve performance)
A publisher or an affiliate partner (someone who promotes for an advertiser)
An affiliate tracking network (a third-party system where advertisers and publishers connect and can track performance and receive payments).
How To Create a Performance Marketing Strategy?- Define your goals.
It may be general brand awareness, sales for your new product line, more leads, or something else.
2. Identify your partners.
Finding the right publisher/partner takes research, but it’s the most important step because it’s how you inspire people to convert.
Today influencer is best partner due to larger amount of audience they have.
- Generate and assign IDs.
The next step is to get your unique tracking links/URLs and codes ready.
This is crucial because the only way to attribute an action to your partner/publisher correctly is with a unique code, URL, or UTM parameter.
How to measure performance marketing?There are various measurement structure for measuring it:
Cost Per Acquisition (CPA):If your motive is sale measure the success of your campaign by the number of sales and pay your partners every time someone buys a product.Cost Per Click (CPC)/Pay Per Click:
If your goal is to drive clicks you’d pay each time your partner drives someone to click.Cost Per Lead (CPL)/Pay Per Lead :
You’d pay each time you get new information on a user because partner inspired it to fill form.Cost Per Impression (CPM) –
Also called cost per mile, you’d pay based on the number of impressions you get from an ad that a partner sharesIs performance marketing worth for business?
Yes of course it provide business with results and business has to pay according to the performance or result. Here in freeflow we provide you with best performance marketing.
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