As the digital community continues to evolve, we focus on the rise of performance marketing and how it has become one of the most effective advertising strategies of the year. As a business, it is also important to consider how you can implement this into your approach to advertising.
What is Performance Marketing?
To put it simply, performance marketing is a form of online advertising that involves the execution of various results. This process requires two parties, an advertiser such as merchants and retailers, and a marketing company like affiliates and producers.
The advertisers will generate a payment to the marketing company once a specific action has taken place on the campaign. This could be anything from a sale, lead or click and can be performed on various marketing channels. Many performance marketing advertisers generally rely on the following:
- Social media advertising
- Sponsored advertising
- Search engine marketing
Influencers with large online platforms and personalised online shopping experiences are also common examples of performance marketing strategies that are currently being used today.
Social Media Advertising
Using social media to generate traffic and brand awareness is an extremely popular strategy as it allows advertisers to campaign across multiple platforms such as Facebook, Pinterest and Instagram. The style of engagement is usually focused around likes, shares, clicks and sales and is very easy to measure.
Sponsored Advertising
Sponsored advertising is mainly focused around influencers creating content on websites and different platforms. This could be in the form of a post, blog or video and involves promoting a certain brand or product. In doing this, the influencer receives compensation that could be anything from a special offer to a free product or experience.
Search Engine Marketing
Search Engine Marketing is known as a real-time auction system and can be effective through either paid or organic strategies. This method mainly focuses on increasing visibility by using popular search engines such as Google or Bing. Find out further information about PPC and SEO marketing!
Performance marketing combines, paid advertising and brand marketing as a way of helping both retailers and affiliates to grow their businesses. Although quite similar to Pay-Per-Click (PPC), advertisers are only required to pay marketing companies after specific actions have taken place. This gives advertisers a range of benefits as well as greater brand exposure.
Using performance marketing as a way of advertising online will give everyone the chance of being successful. Because of this, both parties will have the opportunity to target their marketing campaigns in a more strategic and methodical way.
