A Simple Guide to Performance Marketing
Imagine writing a letter to your loved one and dropping it in the post box without any address, postal stamps or receiver's name. What would happen? Your letter will not reach the desired receiver. It might get lost in the pile of letters, and your message will never reach the person it intended.
Something similar can happen when it comes to digital advertising. If you fail to select the advertising channel, narrow your target audience and strategise well enough, your message will get lost in the clutter.
This is where performance marketing comes into play.
It helps you target the right audience, on the right platform while optimising your budget. Just like you would not pay for something you never bought, in performance marketing as well, you pay only when the intended goal of the advertisement is achieved.
There are several ways to achieve this goal that include Search engine optimisation, Search Engine Marketing, Pay Per Click and Pay Per Acquisition. With these methods, you pay when someone clicks on your ad through a search engine or goes to your website or when they buy something.
This allows you to have better lead generation and sales.
How does this work?
Define performance objectives.
The goal can be increasing sales, web traffic, conversion or lead generation through the advertising campaign. With every objective, your performance marketing strategy will change.
Define the target audience.
Remember the letter without a receiver's name? It gets lost. Hence, defining a target audience based on the demographic, psychographic, geographic and behavioural segments will help you.
Choose advertising channels.
Based on your target audience and their digital behaviour, you can choose the appropriate advertising channels. Digital marketing helps you reach the buyer directly. Hence, platform selection is vital.
Create advertising content.
You need to write a letter for it to reach the person! A blank letter is as good as no letter. Hence, the next step is to create content that gets your message across and resonates with your target audience.
Set a bid budget.
The bid amount is what advertisers are willing to pay when an objective is achieved. This is where pay-per-click (PPC), Pay Per Lead (PPL), Pay Per Sale (PPS) comes into play.
Launch a campaign.
Advertisers launch ad campaigns and display ads to their target audience. Once the campaign is live, your audience starts interacting with it.
Track its performance.
With analytics and other tools, you can understand how well your campaign is doing and achieving the goals you first set out to achieve. With clicks, purchases and conversions you get an idea of ROI (Return on investment).
Optimise the campaign.
Analysing the results will help you decide whether or not you should continue with the existing strategy, improve on it, or increase or decrease your budget.
Performance marketing empowers marketers to create campaigns that win over the audience without breaking their backs. Click here to know more about performance marketing and how it is done on Facebook.