At RingPartner we've previously discussed the topic of performance marketing in-depth, tackling the subject from a variety of angles. For those who may have missed our previous posts, the Performance Marketing Association defines the term performance marketing as a "comprehensive term that refers to online marketing and advertising programs in which brands pay when a specific action is completed." In the world of Pay Per Call, this means that money only changes hands when a consumer views a brand's ad and places a phone call to inquire further. Whether you're already using performance marketing tactics or new to the concept, here's the top five things you need to know about this marketing approach.
Fits All Budgets
One of the most important things to realize about performance marketing is the fact that it isn't out of touch for any business. Whether you control a marketing department in a multi-national corporation or have just opened your own small business, performance marketing is affordable on any budget. Performance marketing doesn't just deliver measurable results, it delivers marketable results that companies large and small can use to showcase the success and popularity of a product or service.
Another major benefit of performance marketing for small businesses, and an overall vital factor to keep in mind, is that it is a low-risk form of advertising. Since brands are only asked to pay for ads that generate a measurable action (phone call to the business), there is no need to spend hundreds or thousands of dollars buying ad space for marketing efforts that may or may not pay off in the end. If there's one thing that should always be remembered about performance marketing, it's the fact that companies only pay for successful transactions/actions.
Real-Time ROI Measurement
There are many forms of marketing in which it is exceptionally difficult to actually measure results. Just because consumers open emails, click through a company site, or share information about the brand on social media doesn't necessarily mean there's a measurable transaction that takes place later. After all, how do you measure brand awareness and "good vibes" about a company in real time? The problem with these interactions isn't that they generate no revenue for a business, but rather that it is difficult to measure how exactly they contribute to ROI.
Performance marketing provides the hard data companies need to point to revenue in the company's coffers and link it to a specific action, from a specific ad series. Performance marketing offers snapshots in real time for factors like cost per lead, cost per sign-up, or cost per sale.
Read More: Is Performance Marketing Worth Your Time?
Focuses on a Specific Goal
In the realm of Pay Per Call, performance marketing is extremely useful because it helps to focus marketing budgets on specific goals. While social media marketing is driven at raising brand awareness through posts, shares, likes, and retweets, as mentioned above those can be hard to measure the impact of and even set a target data point. After all, how much brand awareness is enough brand awareness? Performance marketing connected to Pay Per Call achieves a specific goals, such as increasing calls to the business, generating leads for the sales department, or even boosting revenue through phone sales.
Last but not least, you should know that performance marketing is an innovative format. There's no such thing as the "right" way to reach an audience, but rather there is only the "best" way to reach your target audience. Whatever engagements work for your brand and generate revenue for your bottom line are the actions performance marketing can focus on inducing from customers.