All you need to know about Performance Marketing in 2022.
Performance marketing has proven to be the light in the darkest of times, especially through the COVID Pandemic. Apparently, businesses are experiencing a decline in their overarching annual goals and performance, causing bankruptcy and unformidable collapse in various sectors and industries. However, timely execution of survival tactics surely saved many of them from deep diving into turmoil. Altered business goals, downsizing, reducing operations, repositioning target audience and most importantly altering marketing budgets and agendas towards digital marketing and advertising, have proven to be some of the sustainable measures adopted by businesses to stay afloat in their market.
As a subset of digital marketing, performance based marketing i.e digital advertising, has proven to outperform traditional channels according to the proven market research and surveys conducted in the past couple of years. However, it has extensively benefitted dormant, mid sized and large scale companies immensely through targeted digital marketing.
According to McKinsey & Company in 2018, investments in performance branding will triple from $900 million to $2.6billion in 2022. Looks like we are halfway through.
LET’S GET TO KNOW MORE ABOUT PERFORMANCE BASED MARKETING AS WE MOVE AHEAD.
WHAT IS PERFORMANCE MARKETING?
Performance Marketing as a subset of Digital or Online Marketing; is broadly definitive of marketing and advertising campaigns being conducted digitally, whilst the Publisher or advertisers are paid once the actions such as lead, sale or clicks are completed by the retailer or merchant.
Also being referred to as ‘Marketing based on Performance’; it has rendered positive and promising results to businesses for growth and expansion through its win-win approach for the advertiser and the publisher. However, it benefits the business in multiple ways other than just target achievement such as brand awareness, acquisition of a newer audience, deeper market insights for improved positioning and penetration.
WHY TO CHOOSE PERFORMANCE MARKETING?
- Trackable, Measurable and Timely Results.
- Real Time ROI Measurements.
- Extensive Advertising Reach.
- Reduced form of Risk and Budget
- Expansive Revenue Sources.
- Brand Awareness, Expansion, Engagement.
- Rewarding in Nature.
- Creative, Innovative and Unique.
WHAT ARE PERFORMANCE MARKETING CHANNELS?
1- Native Advertising-
The chameleon of website ads is Native Advertising. It is referred to as the usage of paid and clickable ads that are parallel in terms of look, feel and functioning of the digital platform on which they appear. They are often found on social media feeds or in the form of sponsored suggested content on the web page. They are different in comparison to display ads and banner ads as they align with the rest of the page they appear on.
2- Sponsored Content-
Sponsored content is in the form of articles, blogs, short form content on social media feeds, influencer based content in the form of videos, infographics, guides. This form of content marketing is helpful in driving qualified leads and increasing conversion rate for enhanced online visibility to tap onto the target audience.
3- Social Media Advertising
Social media ads have proven to be far more effective and insightful than organic reach. As people spend more time on social platforms such as LinkedIn, Instagram, Facebook, thereby coming across more clickable feed posts and ads with CTAs for enhanced target or lead conversions for increasing web traffic and sales. Social media ads are the most effective when communicated with appropriate CTAs, target audiences, minimal yet insightful content.
4- Search Engine Marketing
Website content and paid advertising collectively contribute to your SEM strategy. But how is that so? Did you know that the score ( score of relevancy, quality and authenticity ) of your content and backlinks when multiplied by your bidding price for keywords actually increases the chances of your ranking on the search engine. Thus, search engine marketing is not only effective through expensive bidding for search intent keywords. In this form of marketing advertiser only pays when the ad gets clicked on thus it is also referred to as the pay-per-click or clickable ads.
5- Affiliate Marketing –
As an established form of performance marketing, the publisher or influencer with industry knowledge and expertise becomes the affiliate to establish a relationship with the advertiser to generate revenue through traffic and sales after completion of desired action from the audience and customers. The affiliate receives a commission in exchange as per the agreed agreement, thereby using their digital platforms to promote products and services. It is inclusive of influencer, email and geo-targeting search ads while traditionally, it was implemented as loyalty coupons and partnerships.