Performance marketing is focused on results. After all, you only pay for the ad if the user takes the proposed action. It could be viewing the ad, clicking through to the website, filling out a form, making a purchase, etc.
The purpose of this strategy is to optimize resources and bring results to the company in the short term.
You can even use the right media, but you need to track the results for performance marketing. After all, the metrics indicate whether your strategy was successful or not.
Therefore, it is essential to define KPIs — Key Performance Indicators to measure the efficiency of your actions. Next, you will find out what the main indicators of success are.
When you search for any term on Google, a list of corresponding links will appear. At the top, ads related to the keyword in question appear.
Every time that ad is shown to the user, it counts as an impression. That is, this metric concerns the number of times an ad was delivered. A single person can see the same link multiple times, and all those views will be counted.
Generally, running campaigns with the visualization objective is more for branding, as the visual impact will increase brand awareness.
Despite this, a large number of impressions does not necessarily indicate the success of a campaign. Therefore, it is good to avoid getting too attached to this metric. It is important, but the data must be crossed with other KPIs.
This indicator refers to the number of times a user clicks on the ad. It helps evaluate various aspects of the campaign.
When an advertisement has many impressions, for example, but the click-through rate (CTR) is low, it may be a sign that there are flaws in the definition of keywords, confusing texts, low-quality images, or even inaccurate targeting.
Generally, a campaign with a high CTR is considered successful. The ad was good enough to draw the user to the destination. But just as impressions shouldn’t be analyzed in isolation, neither should clicks. Few clicks without conversions could indicate issues with the page the user was redirected to.
It is an indicator referring to customer interactions with ads. This account includes likes, comments, shares, time spent visiting the site, etc.
Imagine an ad on Facebook, for example, targeting the company’s blog. It is a very bad sign if the customer enters and leaves the page in a few seconds. This leak shows that the user experience was not good, and he didn’t like what he saw there.
The lead is a potential consumer willing to purchase products or services offered by your company. Generally, the user shows interest in the brand by subscribing to a newsletter, downloading an infographic, filling out a contact form, requesting a quote, etc.
The greater the number of qualified leads, the greater the chances of closing deals. But it’s important to calculate the amount needed to generate that lead. The indicator to measure this is the Cost per Lead (CPL). Ideally, the result should be as low as possible.
It’s sales that keep any business standing. By the way, no one goes all this way not to see money coming in at the end of the day. For this reason, the most coveted goal in performance marketing is converting sales. If sales increase, it indicates that you are on the right path.
Return On Investment (ROI)
As important as selling is, making sure that the investment in marketing gives a satisfactory return. Therefore, ROI is the most important metric in performance marketing.
This is because it determines whether the money used in the campaign resulted in profits for the business.
Better than converting sales is doing it at a low cost. This is the premise of performance marketing, and ROI is the tool that helps get a correct answer.
Follow 4 Examples Of Performance Marketing
Let’s list some examples of performance marketing strategies to understand better how campaigns work. Next, you will see 4 cases where the tactic can be applied.
Generating leads means capturing contacts from users who have a high chance of doing business with your company. By advertising on the Google search network, for example, you can attract the attention of people looking for something related to the product or service your brand offers.
Another way to turn a user into a lead is to create a landing page with a landing page that encourages these people to download rich material — infographics, e-books, whitepapers, etc.
So, when filling out the form, the user provides important data so that the company can relate to him more directly. In addition, it also becomes possible to run campaigns on other channels, such as SMS and email marketing.
Imagine a scene: you are thinking about changing your cell phone; you type in Google “buy Smartphone Y” and immediately see a list of prices and stores selling the product you want. These options are Google Shopping ads and are prominent on the search page.
Advertising on this channel is a way to increase the visibility of your products and gain consumer attention. After all, completing the acquisition is just a few clicks away.
Do you know when you browse e-commerce, date your dream laptop, but don’t complete the purchase? When you log into Facebook, you see the same product from the same store, right? This is remarketing.
Remarketing is a technique that displays ads to consumers who have already had contact with the brand in question. This strategy aims to increase the conversion potential by encouraging the consumer to complete the acquisition.
Fun ads that create emotional connections with customers have great potential to go viral, especially on social media. People like, comment, and share the content.
For example, contests, sweepstakes, and promotions are excellent alternatives to engage the audience and encourage interaction. These strategies are aimed at improving brand reputation, nurturing relationships, and, of course, selling.
Also Read: Retention Marketing: Benefits And How To Implement It?