The performance marketing sub-industry continues to grow every year as more marketers incorporate it into their overall strategy. In this form of marketing, payments are pegged in measurable business objectives. It includes programmatic ads and affiliate marketing among other cost-per-action (CPA) models.
This article equips you with the basic knowledge you need to get started with performance marketing in 2019.
The Basics of Performance Marketing
To gain a good grasp of performance marketing, you need to be familiar with the CPA payment model. In this model, marketing companies and advertisers receive payment upon completion of a specific action, such as a click, lead, or sale.
The CPA model is what makes performance marketing distinct from other forms of advertising. In conventional advertising, clients pay advertising companies upfront fees regardless of how well or poorly the ads perform. In performance marketing, the advertising companies receive payment only for successfully completed transactions.
It can, therefore, be said that performance upturns the traditional way of advertising. You can measure the effectiveness of ads in real-time, down to the click. Consequently, you can accurately determine the cost of acquisition.
Read More: Pros & Cons to Using Performance Marketing for your SMB
Retargeting Market Campaigns with Performance Marketing
Many businesses have difficulties with retargeting customers and converting them throughout the marketing funnel.
For examples, specific marketing incentive can effectively convert customers who leave the site before making a purchase because these customers have already engaged with the brand. Market pressures and improved ROI are driving the adoption of performance advertising as a tool for retargeting campaigns.
Performance marketing offers numerous benefits for retargeting campaigns and various other types of marketing campaigns. These include:
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Data. Marketers can access highly specific data on the effectiveness of specific individual advertisements. Marketers can track individual leads, inbound calls, sales, and downloads across a variety of marketing channels.
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Personalized Ads. Retargeting marketers derive immense value from performance marketing because most customers want personalized ads.
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Desktop and Mobile. Retargeting marketers aim for customers across multiple channels and devices, including social platforms, email, mobile in-app, and mobile web.
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Technology. Performance marketing technology offers marketers powerful tools for targeting, tracking, and attribution.
Incorporating performance marketing principles and adding these tools to your marketing arsenal results in substantial ROI improvements of overall marketing strategy.
Read More: Top 5 Things to Know About Performance Marketing
Performance Marketing in 2019
The business environment—especially the retail market—continues to become increasingly competitive as a low barrier to entry leads to more businesses joining various service industries.
Many long-established businesses have taken a serious hit in their market share over the previous decade. The markets in service industries—including personal services, business services, IT, or events among others—have become increasingly segmented and customers are growing choosier. Failure to implemented highly targeted marketing strategies often leads to competitors chipping away at your market share.
Strategically implementing powerful performance marketing strategies is among the ways marketers can level the playing field and perhaps even change the tide in their favor. And the fact that you don’t need to mammoth budget to take advantage of performance marketing makes it even more valuable.