Performance marketing is exactly what it sounds like: it's a strategy that allows you to pay advertisers, agencies, and affiliates based on their performance in selling your product or service, instead of a flat fee. This form of advertising is often preferred over traditional marketing and advertising models because it allows businesses to pay only for the results that they get.
How does performance marketing work?
The process of performance marketing is actually quite simple, which is what makes it so attractive. Here are the steps that you should follow:
1. You set up your advertising campaign, either with a large ad agency or even directly with an advertiser. This will depend on the type of campaign you are trying to run.
2. You agree with the ad agency or advertiser on how much you will pay per result.
3. The company you work with then places your ads, whether it's online or offline, and displays them to your target audience.
4. If someone clicks through your ad and makes a purchase, you only pay for that click-through.
5. Ad agencies, advertisers, and affiliates only get paid if they produce results for you.
When you try to run an advertising campaign to sell your product or service by yourself, it can be extremely frustrating and costly when there is no clear way of knowing how much you will be spending and which ads are actually converting into sales. With performance marketing, however, you can set up your campaign, and rest assured that when results come in, the only thing you will be paying for is your actual sales.
Performance Marketing Channels
Sponsored Content
Sponsored content is a popular type of performance marketing that's designed to help businesses get their names out there. In this program, you'll pay companies like Facebook and Google for them to host your ads on mobile apps or websites that are relevant to your business. If someone clicks on an ad that appeared in these places, then they will be directed to a website or landing page which you have created, where they can find information about your services.
Performance marketing channels like this are great for getting new leads and converting them into sales. However, if you want to try this type of advertising out, it might be best to work with a digital ad agency that has experience running sponsored content campaigns.
Programmatic Display Ads
Programmatic display ads are another type of performance marketing that companies use to market themselves online. With this strategy, you'll pay a network like Google or an ad agency to place your ads on websites and mobile apps that fit with your branding and messaging. If someone clicks through one of your ads and makes a purchase, then you will only have to pay for the click-through. These channels are also great at converting leads into sales for businesses, so if you want to give them a try, it's best to work with an ad agency that has experience running programmatic display ads.
Search Engine Marketing
Search engine marketing (SEM) is when you pay companies like Google to place your ads at the top of their search listings. When someone types in a keyword or phrase that's relevant to your business and clicks on your ad, then you'll only have to pay for these click-throughs.
SEM can be a great advertising option for those who want to generate sales without spending too much.
Affiliate Marketing
Another form of performance marketing is affiliate marketing, which means that you and another company or website will work together to sell your product or service. To make this happen, the other party will create ads and link them to a landing page, website, or blog post that you've created. If someone clicks on their ad and makes a purchase, then they will get paid through commissions or any other arrangement that you have together.
This type of advertising is popular because it allows businesses to sell products without paying for ads that focus on branding instead of producing results. Since the affiliate network is only paid if their marketing efforts are successful, they will be incentivized to generate as many sales as possible.
As you can see, performance marketing can help businesses get more leads and convert them into actual sales for less than they would pay through traditional methods. As long as you work with a reliable affiliate network or digital advertising agency, your business can benefit from performance advertising without any of the risks that come with doing things alone.
For a reliable digital marketing agency that will cater to your every digital marketing need, from SEO to website design, do contact us at We Love Digital Marketing. We're the best digital marketing agency in India, and we'll take good care of your business. Our staff is considerate and adept at their jobs, so you can rest easy knowing that we will pull out all the stops to get your business seen online.
