Maximize Your ROI With Performance Marketing 

We purchase technology like iPhones and Surface Pros for their specs and performance. The same goes for cars – we strive for the ultimate comfort, horsepower, and performance. Companies hire specific professionals for their skills, work ethics, and, again, performance. 

We strive to receive results, and performance is what drives them. 

So, if almost everything that we purchase is meant to perform and give us results, why can’t we have the same mentality when it comes to digital marketing?

Surely, we can. 

Performance Marketing is a strategy that is driven by results. Should we dive in..?

Performance marketing refers to strategies and campaigns focused on achieving specific, measurable results. It spotlights actions like sales, clicks, conversions, and lead generation, unlike traditional marketing campaigns that mostly drive brand awareness and engagement. 

How Does Performance Marketing Work?

Performance marketing works when businesses place ads on any marketing channel, like social media platforms, search engines, embedded web content, or within content videos. 

Once the ad is in place, the advertiser pays based on its performance. You can pay based on the number of impressions, clicks, shares, sales, or leads. 

• Cost Per Impression (CPM) – You pay for every thousand views your ad gets.
  
  
• Cost Per Click (CPC): You pay based on the number of times your ad is clicked on. This is a great way to drive traffic to your website.
  
  
• Cost Per Lead (CPL) – With this one, you pay only when someone leaves their contact information by signing up or subscribing to something like a newsletter, a free trial, or a webinar. Leads can always be converted to paying customers down the line! 
  
  
• Cost Per Sale (CPS): This method is commonly used in affiliate marketing, where you only pay when someone makes a purchase from your ad.
  
  
• Cost Per Acquisition (CPA) – This is a more broad, general approach to acquiring any specific action – it could be a sale, a lead, or a site visit. 
  
  

There are multiple channels for performance marketing. Of course, you should always consider your target audience (T.A.) and what their preferred channels are; you can leverage data for that. 

Let’s explore the channels and the types of ads you can choose from to run your performance marketing campaigns. 

• Search Engines: People do most of their research on the web via search engines like Google. You can use paid search advertising to run pay-per-click (PPC) ads. The most common platforms are Google Ads and Bing Ads.
  
  
• Social Media: Platforms like Facebook, Instagram, TikTok, and YouTube offer various opportunities for different types of ads and repurposing content.
  
  You can use social media to drive people to your site, have people sign up for webinars and leave their contact information, and share your content with their friends.
  
  
• Banner Ads: These are the display ads that you see on your Facebook feed or news websites. Engaging content, videos, and graphic design helps these ads stand out.
  
  
• Native Advertising: These ads blend in with the rest of the content on a website.
  
  Native ads are seamless, which makes them more appealing to users. They are also less invasive and irritating than typical, loud, bright ads, which draw too much attention but often do not yield enough results.
  
  If you want to implement native advertising, we recommend you check out Taboola.
  
  

Why Implement Performance Marketing 

Now that you understand what performance marketing is and how it works let’s take a look at how your digital business can benefit from it.

• Measurable Results: You can track every part of a performance campaign, from initial clicks and final conversions to the success of each keyword, channel, and image.
  
  
• Cost Efficiency: Paying for performance (only when your viewer performs a specific action) is much more efficient than paying blindly into the abyss. You can also set daily and total budgets to minimize financial risks.
  
  
• Scalability And High ROI: You can scale successful campaigns by targeting new audience, increasing your budget, and exploring additional channels.
  
  Performance marketing targets high-intent users, which leads to increased conversion rates and improves your ROI (return on investment).
  
  
• Flexibility: You can adjust your campaigns in real-time, from ad creatives and keywords to total and daily budgets. 
  
  

Pro Tips For Performance Marketing 

Here are some best practices to consider when implementing performance marketing.

• Define Your Goals: Set SMART (specific, measurable, achievable, relevant, and time-bound) goals for your marketing campaigns.
  
  Some examples of SMART goals include increasing sales, brand awareness, and lead generation.
  
  
• Choose The Right Channels: Your goals and target audience preferences will help determine which channels to use when running your campaigns.
  
  For example, search engine ads are great for users actively looking for products and services, and social media ads are best at reaching users based on interests and demographics.
  
  
• Make Creative Ads: Your ads need to grab the users’ attention and keep it long enough for them to complete whichever action you need, whether it’s leaving their contact information or making a purchase.
  
  Make sure the content in your ads resonates with your audience, reminds them of their challenges, and offers a solution to those.
  
  Use strong call-to-actions (CTAs) to encourage viewers to take action, such as “Sign up now,” “Schedule a call today,” or “Learn more.”
  
  
• Leverage Data: Data can tell you a lot about your target audience, past campaign performances, and what you should focus on in the future. Things that worked before are likely to work again, and vice versa.
  
  
• Leverage Retargeting: Personalize ads to retarget those who have interacted with your brand before but have not converted. Reengaging with users who are familiar with your products or services often leads to more conversions.
  
  
• Leverage Automation: Automation is a must-have in marketing – it saves money and time, which amounts to more money.
  
  Some specific automation AI tools to consider for performance marketing include Google Ads Smart Bidding, which automatically adjusts bids to increase conversions, and real-time bidding, which makes your ads appear at the right place and at the right time. 
  
  

Closing Remarks

Performance marketing is a great strategy if you are looking to improve your ROI, lower your costs, and scale your business overall.

It focuses on a high-intent audience and allows you to choose which action you’d like your audience to perform when they see your ad.

With performance marketing, you can run different types of ads depending on your goals and target audience preferences. 

Diversifying your ad choices can increase your exposure and bring new business to your brand. However, don’t forget to track and analyze campaign performances, as data can tell you a detailed story of what works and what doesn’t. 

We wish you success with your performance marketing journey!

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– Steph