Performance marketing has completely changed the way companies advertise and sell products. It has also impacted the way we measure the success of marketing campaigns. In the past, attribution was nearly impossible. Performance marketing is just one of the areas that Banner Edge Media specializes in and in this post we’ll share why performance marketing is a key part of your digital campaign.
Today, performance marketing campaigns give you the ability to measure everything from brand reach to conversion rate down to a single ad. This new age of data-driven marketing has given advertisers valuable insight into their performance, which has helped them optimize their campaigns according to the best cost per acquisition. As advertising becomes more transparent, advertisers are looking beyond branding to build marketing strategies with proven ROI. Performance marketing was born from a need to decrease cost per acquisition and increase ROI. With performance marketing campaigns, advertisers pay when a specific action is completed, rather than for impressions or clicks.
While major corporations can spend millions of dollars on branding, most businesses need to focus on the bottom line to stay profitable. Performance marketing puts power back in the hands of the advertiser.
You determine the action, then pay when that action has been completed – whether it’s a sale, lead, or click.
Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers (a.k.a., “retailers” or “merchants”) and marketing companies (a.k.a, “affiliates” or “publishers”) are paid when a specific action is completed; such as a sale, lead or click. You determine the action, then pay when that action has been completed – whether it’s a sale, lead, or click.
Q: What Makes Performance Marketing Special?
A: Performance Marketing is a combination of advertising and innovation that helps retailers and affiliates grow their businesses in ever-changing ways. Campaigns are highly targeted for each retailer in such a way that everyone can be successful. Performance marketing done right creates win-win opportunities for both retailers and affiliates.
Q: What Makes Performance Marketing Different from Other Forms of Advertising?
A: Unlike other forms of traditional advertising where fees are paid up front and do not depend upon the success of the ads, advertisers in performance marketing only pay for successful transactions. Performance marketing has successfully reversed the traditional value proposition of advertising and also allows for real-time measurement of ROI.
Q: What Types of Companies Use Performance Marketing?
A: The various players include advertisers/merchants/retailers, networks, publishers/affiliates, outsourced program managers (a.k.a., OPMs), agencies, and solution providers. Companies range from small sole-proprietor businesses to publicly traded Fortune 500 companies.
Q: What’s the ROI on Performance Marketing? How Measurable is it?
A: Performance marketing is trackable and measurable down to the click. Advertisers can measure everything from the cost of acquisition to incrementality (e.g., new customers of new customers or average order value).
Do you have more questions about Performance Marketing? Contact Banner Edge Media today.