𝐌𝐢𝐥𝐥𝐢𝐨𝐧𝐬 𝐨𝐟 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐚𝐫𝐞 𝐞𝐧𝐠𝐚𝐠𝐢𝐧𝐠 𝐢𝐧 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠! 𝐇𝐚𝐯𝐞 𝐲𝐨𝐮 𝐬𝐭𝐚𝐫𝐭𝐞𝐝?
Many industries have suffered as a result of COVID-19. As a result, many businesses continue to be cautious with their spending and budget allocation as they begin to figure out how to rebound in the post-pandemic era. Although the concept of performance marketing is not new, COVID-19 and the acceleration of digital transformation has made it more important than ever.
When your business has a limited budget, you want to make sure that every dollar counts. To ensure your advertising dollars are working as hard as possible, performance marketing enables you to know exactly how each dollar is spent, which in turn translates into more effective campaigns.
📌 What Exactly Is Performance Marketing?
Performance marketing is a digital marketing approach that is driven by results. Companies only pay marketing service providers after their business goals have been achieved or after actions, such a click, sale, or lead, have been taken. It’s the perfect solution for businesses to reach their audience at scale on a low budget.
📌 Types of Performance Marketing
When it comes to performance marketing, businesses compensate marketing service providers via the following options:
Cost Per Acquisition (CPA) or Pay Per Sale (PPS) – Here, businesses pay marketing service providers when ad viewers carry out an action, such as making a purchase, clicking a link, or filling up a form. This is the most common in the field of e-commerce.
Cost Per Impression (CPM) – Impressions refer to the number of times that your adverts were on-screen. CPM, also known as cost per thousand impressions, is a formula that calculates the total ad spend for every thousand impressions.
Cost Per Click (CPC) – A business will pay a marketing service provider an amount for each ad click.
Lifetime Value (LTV) – Using techniques like predictive analytics, LTV calculates the projected spending of acquired customers over the course of their association with the business based on their behaviour. LTV is quickly gaining popularity as a statistic, thanks to the emergence of new sophisticated measuring tools.
📌 Common Types of Performance Marketing
1️⃣ Affiliate Marketing
Affiliate marketing refers to a marketing agreement whereby an online merchant pays a third-party platform for traffic or sales brought about by referrals from that platform. This frequently entails collaboration with social media accounts with large followings, or discount, loyalty, review, and incentive websites.
2️⃣ Native Advertising
At first glance, native advertisements may not appear to be advertisements as they frequently mimic the look and feel of the website or platform they are shown on. They may be dynamically fed based on which user is reading the material and fit "natively" on the page.
3️⃣ Paid Search Marketing
In paid search marketing, businesses pay search engines such as Google, Bing, and Yahoo to position their advertisements higher on relevant search engine results pages (SERPs). This is usually done with the aim of increasing traffic to their website.
4️⃣ Sponsored Content
Sponsored content is a type of native advertising that entails the addition of a post or video on a website that features related material. The sponsored material may be flagged as such, while blending in with other content.
5️⃣ Social Media Marketing
To increase traffic and brand recognition, this form of performance marketing makes use of social media platforms, and involves digital material displayed on social media sites such as Instagram, Facebook, or LinkedIn. Through social media marketing, businesses may reach potential customers while tracking other relevant KPIs such as engagement and clickthrough rates (CTR).
📌 How VKT’s Performance Marketing Drives Business Growth
We combine our expertise in both branding and performance marketing with our fully integrated team to drive performance throughout the full marketing funnel. From our experience, a thoughtful and data-driven full-funnel marketing strategy can drive significant value resulting in improved Return On Ad Spend (ROAS), by looking at the different aspects of targeting and analysing data from the different digital platforms at different stages of the funnel.
Performance marketing is an innovative and efficient approach to broaden your audience and reach while also gathering important data which can be used to further finetune your marketing and business strategies. It allows you to leverage user interests and target customers wisely, avoid customer ad fatigue and also enables you to time your ads right. You'll discover it's simpler than ever to grow your business when you embrace the capabilities of performance marketing.
📌 Fast Track Your Performance Marketing With Us!
VKT offers a full-fledged 360° Digital Marketing Programme focused on accelerating your company's growth. Expect not only solutions in Performance Marketing, but also a variety of other services ranging from Branding to Supply Chain.
With our experienced MRA & EDG Certified Consultant, VKT boasts a proven track record in achieving a high EDG application success rate that grants your business up to 70% funding for SMEs and 50% for non-SMEs. So wait no longer, and contact us for a coffee chat to discover more about how you may start your performance marketing journey and leverage our expertise!