Energize Your Business with Online Performance Marketing
We often address the present age as “an age of digitalization”. In this digital age, we greatly adore online advertising industry. While we are talking about the online advertising industry, a particular sector deserves special mention- “performance marketing”. Though the age of performance marketing is no less than a decade, a number of misconceptions among the experienced marketers have caused it suffer a lot. These misconceptions are depriving the businesses to reap the benefits of online performance marketing. In the very recent time, a gradual and promising rise of performance marketing is caught by the eyes of the experts. It is the high time for our entrepreneurs to understand the profits it can bring to their businesses. Let’s start with the basics of performance marketing.
Basics you should know about performance marketing
Performance marketing can be the smartest advertising platform for a business. You should consider it as an integral part of your entire marketing strategy. When affiliates are paid to promote their clients with the help of various channels such as email marketing, PPC, and social media, performance marketers are paid on the basis of the performance. In simple words, performance based marketing is a set of online marketing and advertising programs in which advertisers and the marketers are paid for a specific performance.
5 vital Key performance indicators
In order to track the improvement of your performance marketing, you should know about the key performance indicators or KPIs. These indicators help you assess the performance of your marketing plan. A list of vital KPIs is given below to help you track your progress:
1. Sales revenue
You should monitor how much revenue you have got from your performance marketing. It is easier to assess the performance when you count the sales revenues.
2. Cost per lead
Don’t forget to count the cost per lead. Cost per lead refers to the cost you are spending in order to get a potential lead.
3. Return on Investment
Calculating return on investment or ROI helps to track the monthly as well as yearly performance. Apart from this, this assessment helps you to determine your further marketing strategy.
4. Traffic-to-lead ratio
It is important for you to track the traffic-to-lead ratio. If your traffic is increasing but the traffic-to-lead ratio is decreasing, something might be missing and you need to find out that.
5. Lead-to-customer ratio
You are managing to generate leads ! Ok, it’s a good sign. But, how many leads are converting into customers? It is also very important. If you really want to assess the performance, you must track the lead-to-customer ratio.
Benefits of performance marketing
1. Easy to track and measure the performance
As you know that advertisers and marketers pay only for the successful execution of a goal, it is quite easy to track the progress. Each goal depends on the action of the consumers. This can be purchasing or taking subscriptions. When you spend money on traditional advertising media, it is not assured that the ads will generate sales for you. In performance marketing, tracking the performance does not depend on the estimates. It is based on the exact result. With the help of the KPIs (discussed above), you can easily assess the progress of your performance marketing.
2. Diversifies the revenue stream
There are number of sales channels that you can use for your business. But what will you do during the recessions? In such circumstances, your sales in those channels may lag. Performance-based marketing can diversify different revenue systems for you. When other channels will fail, these systems can lead you to profits.
3. Adds innovation and creativity to your marketing strategy through affiliates
Affiliates are always very creative. You know it very well that more sales and traffic they bring to your business, more commissions or profit they gain. It makes them think about an innovative method and implement it properly. Affiliates are desperate enough to jump over a new trend, be it social media campaign or something else. Being professionally experienced, they can implement a new trend in just two or three days while your company may need a long time to implement a new trend by itself.
4. Inspires residual business
One of the greatest benefits of performance marketing is whenever your publishers bring new customers for you, you can have a database containing the new users to further the process of exploring the market and up-selling your products. When you are working with efficient and reliable publishers who are able to attract a core demographic that is very similar to your target market, you can rely on the new customers for influencing their individual networks or circles to make a buzz about your brand or products.
5. Increase your brand exposure
There is no limit on how many publishers you can hire to promote your products or how many online ads can represent your business around the web. You can leverage this platform (performance marketing) to increase the target traffic to your site; even, it can help you increase the sales from different geographic markets which you have never considered for investment.
Brand that achieved success with performance marketing
To cite an example, Volkswagen has gained revolutionary improvement with the help of online performance marketing. The company set up a targeting decision tree to create bespoke journeys for their consumers. Their main aim was improving personalization of their digital communications. After implementation of this strategy, their cost per named lead has dropped by 26%, and it resulted in three times increase of leads. It also decreased the overall cost per lead by 33%. Sounds interesting? Lets see how you can move forward with your performance marketing.
5 steps to success
1. Decide your goal
What is your goal? It might be either leads or sales. First of all, it is important to define your goals by which you can narrow down the field of effective channels of performance marketing.
2. Determine a right affiliate network
The success of your performance marketing depends on your affiliate network to a great extent. So, make a thorough research and analyze tenure, finance, media channels, technology, and services.
3. Introduce media mix
You should always share your key performance indicators, budget, and geolocation information with your affiliates to help them provide you with an effective media plan for your online campaign .
4. Track the campaign
When your campaign is launched, you should ensure that the budget is being used accordingly, adhering to the brand guidelines. Apart from these, don’t forget to track the performance
5. Optimize properly
How can you achieve return on investment (ROI) goals? When you pay more for valuable sources in order to scale the volume, you can optimize each of your campaign source ROI. At the same time, you can cut off the sources that brings no profit to you. Optimize properly to get the most out of the performance marketing.
A Final Takeaway
If you are eagerly looking for ways to strengthen your online presence and diversify the revenue streams, no other marketing channel but performance marketing can please you. You can reap all the benefits discussed above with the help of right affiliate networks and publishers.
Feeling curious about online performance marketing? If you are looking for a deeper performance marketing for your business, feel free to contact us.
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