Performance Marketing
Performance Marketing is the recent concept which focuses on marketing to achieve predefined performance metrics.
Brands have understood the importance of digital. We can see an increasing spend on advertising budget on digital media. The proliferation of digital media has fueled the new age marketing known as performance marketing.
As you know, Digital channels allow to measure each click, view, impression, likes etc. The traditional marketing based on mass media like TV and Newspapers was like shooting in the dark. A brand places a TVC during a popular show and hopes that most of the audience watch the ad and take some actions. There is no guarantee that how many people have watched the ad.
Digital media has changed the landscape when it comes to measure the impact of any campaign. The traditional marketing has given way to Performance Marketing.
Performance marketing refers to marketing campaigns where the payment happens based on completion of a desired action such as getting a lead, sale, conversion, booking, or download.
Unlike traditional and organic marketing, performance marketing is specifically used to drive actions, track and measure those actions, all while attributing the ROI of each asset, campaign or activity.
Let’s understand the concept with an example. Suppose, an EduTech company is running a campaign to persuade users to download its app. To measure the performance, it can decide on few metrics, such as minimum of 50,000 impressions (views) of the ad, about 1000 clicks on the ad leading to its app story, and finally at least 100 users install the app. Company can inform its publishers about these parameters and it will pay only after achieving the desired results.
There are a variety of tools available for performance marketing like Display ads, banner ads, content marketing, video ads, and social media. Mostly performance is measured on CPM, pay per click, pay per acquisition, pay per lead etc.
Digital marketing is now the present and future of marketing. So, anyone interested in a career in digital marketing should explore and learn about performance marketing and other popular methods like affiliate marketing.
Readers can visit the Think with Google lab to know more about successful case studies based on performance marketing here.
Another article of interest could be how to measure digital marketing efforts.