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Performance Marketing and Customer Purchase Intention

While watching videos online or surfing the web, we’re used to seeing a number of advertisements. Ads change based on our internet browsing history and fall into algorithms that show us what we want to see. For example, when we see a chilled Mango Juice ad while watching a YouTube video in the scorching summer season, we crave to buy it. This is exactly how performance marketing works and aims to affect customers' purchase intentions.



(Source: WordStream)



However, there are a lot of technical and analytical factors that go into understanding and driving consumer behaviour. Effectively boosting your brand and products and utilising these performance marketing strategies can influence customers’ purchase intention to a large extent.

Now, let’s understand what these factors are and how they work -


Personalised Marketing

When you search for a product online, you often see similar and relevant products in other ads. The reason is Search Engine Marketing (SEM). Through SEM, performance marketing uses data and analytics to target consumers with customised messages tailored to their interests and needs. SEM drives targeted traffic to your website and increases conversions by bidding on relevant keywords. Through SEM, your brand is placed in front of users interested in your product to strengthen consumer connection and increase purchasing likelihood.



(Source: iStock)


Relevance of Consumer Behaviour

Ads are powerful tools for performance marketing. We, as consumers, prefer products whose story or content catches our attention. But how does it work? Different search engines ensure that ads are relevant to consumer interests, search history, and behaviour - for example, social media advertising (SMA). SMA can impact customer purchase intentions by targeting users who follow influencers or brands related to your products or services. As a result, it can increase brand awareness and generate a sense of desire to purchase.



(Source: Forbes)


Targeting Relevant Audiences

Have you noticed that your location changes your online ads? When you travel somewhere, you will notice many online trip-related ads like hotel bookings, restaurants, etc. This is because performance marketing channels, like display advertising, come into action. It helps marketers target particular audiences based on demographics, behaviours, and interests. Through this, marketers can increase the likelihood of taking action and of conversions and can generate brand loyalty.


Measurability

Performance marketing allows real-time tracking and measuring of advertising campaign effectiveness. For example, analysing bounce rate (an indicator of how long people are on your website), engagement rate, and KPIs enables marketers to optimize campaigns and make adjustments to improve performance, which can increase the chance of a conversion.


Social Proof

Consumer decisions now rely heavily on what influencers support or what others recommend. Customers develop trust in businesses by seeing social proof, such as customer reviews and ratings, testimonials, and leaving comments, which can influence a customer's purchase decision (also known as affiliate marketing). It additionally increases brand awareness and generates high-quality leads and sales by partnering with influencers or websites that cater to the target audience.

(Source: Sujan Patel)




Call-to-Action

Performance marketing typically includes a call-to-action (CTA) that encourages consumers to take a specific action, such as purchasing or signing up for a newsletter. CTAs can increase the consumer's intention to purchase by providing a clear path to take action.



In summary, while performance marketing can influence consumer purchase intention, it is not the only factor that drives purchasing decisions. Various factors, such as word-of-mouth marketing, customer handling, loyalty, etc., play an equally essential role. Marketers must consider these factors when developing their marketing strategies.


With years of experience, Albatrot understands brand requirements and uses the most strategic way to reach digital consumers. To connect with us, contact us here.

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