In Performance Marketing, you only pay for the real results
Performance marketing seems to have a different definition from one marketer to another. To simplify its definition, we can say it is a form of advertising that pays a commission based on performance. It allows marketers to make data-driven decisions, being analytical and choosing the right KPIs. It is goal-driven and it can differ from a business to another: for some, it might be sales when for others it can be registration. With a performance marketing strategy, you have a clear view of your marketing efficiency and costs.
Performance marketing is a relatively new term in the marketing world which is often confused with affiliate marketing. However, affiliate marketing is part of the performance marketing concept. The “performance” is counted to focus and optimize metrics such as “ CPL, CPC and CPA”. Unlike in traditional advertising where the marketer pays a certain amount of money for their campaigns upfront, in performance marketing, campaigns are optimized as you go along and the payment is only made if an ad was successful and achieved the objective.
Performance marketing has started to be favoured by many CMOs since it enables transparency in marketing campaign efficiencies & spendings and a better understanding of how marketing investments work.
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What are the different types of performance marketing?
Performance marketing is traditionally known from having clear objectives such as; CPC, CPM, CPL and CPA.
Nowadays, performance marketing is widely adopted, not only in traditional ads but also in search engine marketing (SEM), search engine optimization (SEO), display, native ads, social media marketing, email marketing and content marketing.
We have gathered below a few common types of performance marketing.
Performance Marketing type 1: Social Media
The social media type of performance marketing has an objective to gain traffic, brand awareness or conversion. To reach these goals, you have to post content on the relevant social media platforms. You can easily track your campaign performance by measuring engagement, likes, clicks and sales rates.
There is so much competition on social networks nowadays that the algorithms keep on getting more and more complex. So focus your efforts on the social networks that you have chosen, with the appropriate strategy.
If you are in a B2B business, you might want to focus on Linkedin and Twitter as they are great social media channels for B2B businesses. Also, Youtube is a good asset, for B2B as well as for B2C businesses.
On the other hand, if you have a B2C business, instagram and facebook are most commonly great special media channels to tackle.
Finally, to run a performance marketing strategy on social media, you must also think about what type of content you want to put up and what target audience your content is addressed towards.
Performance Marketing type 2: Search Engine
Search engine marketing can be broken down into two categories: paid and organic search strategies.
Search engine advertising is a paid method of advertising on search engines. It is a very effective performance marketing type, as you get traffic quickly, you can also target any region you want and use dayparting on your ads and use your budget more efficiently.
Performance Marketing type 3: Native Advertising
It is an online marketing performance strategy that enables an advertiser to promote content in the context of the user experience. To put it simply, native advertising is promoting content within a publication. When you read an article online, beneath it you have a table or tab with other articles proposed that will usually say “sponsored content”.
This type of advertising matches with the website you are being advertised on, as the content is similar. These ads actually don’t look like advertisements.
Performance Marketing type 4: Affiliate Marketing
Affiliate marketing is promoting someone else’s product or service by using an affiliate link.
The commission is paid only after the affiliate has recommended a product and the customer has gone to the merchant’s website and made a purchase.
Usually, you see affiliate links on blogs, which is most commonly called link building, or on youtube in the description box. It is also very common nowadays to perform affiliate marketing through influencers, as they have the ability to leverage the buying decision on their audience. This type of affiliate marketing is also known as content marketing and we can recognize it easily, as it can be: product reviews, case studies, tutorials or tools comparisons.
Keep reading if you want to know how to start doing affiliate marketing, following very easy steps.
All these channels can be tracked and measured by their performance. Performance-driven marketing can touch various marketing channels and tactics since all of the actions can be measured and monitored.
Modern marketing analytics tools offer very detailed marketing performance monitoring that helps marketers to track each of their marketing activities.
For example, nexoya offers such AI-based marketing performance monitoring where a marketer can track their activities by adjusting the marketing budget accordingly in order to reach the objectives. (Find an ultimate list of best AI marketing tools here).
The advantages of Performance Marketing
As we mentioned before, one of the most important advantages of performance marketing is that it gives you the chance to measure the performance of every marketing effort, starting from the impressions to the ROI.
It also helps to control the marketing budget and understand clearly where the money goes and what it gives in return (unlike in the old times where the effectiveness of investments in marketing could not be measured clearly). Additionally, it allows you to really optimize your marketing activities proactively – after a couple of days you already see what channel works or what media works and what not and can adjust accordingly.
But what about AI and what types of advantages does AI bring to Performance marketing?
With the help of AI personalization, the potential customers see less irrelevant ads across the web.
Which Performance Marketing Tools will help you grow?
We made a short list of tools you can use to start your performance marketing strategy, within the different types of performance marketing you chose for your brand. Performance marketing tools are valuable to any marketing team that wants to be more performant. We will then explain later in the article how to start your own performance marketing strategy, so make sure to keep reading to have as much feedback as possible!
Performance marketing tools for Social media
The social media you want to advertise on have a countless number of users, both buyers and sellers. Consequently, these platforms have a huge amount of data. Targeting your end-users can be tricky or seem unattainable when you start off, that’s why you must carefully choose your channels and give them all you got to reach your target audience.
We ranked the social media performance marketing tools from the most used social network worldwide to the least, as of July 2020.
The most common performance marketing tools used are:
Nowadays other platforms start to be massively used, these two tools can also be used to run performance marketing campaigns.
Performance marketing tools for search engine
You might also want to use some paid advertisement to reach as many people as possible. We listed search engine advertising platforms and keep an eye open on your data.
Performance marketing tools for Native Advertising
Ads on a website or blog can be so aggressive that most of us adblockers. So marketers have turned the problem around by proposing more personalised content that appears seamlessly with the platform it is on. Native advertising is a much more focused and personalised approach to content, as it is more relatable, hence the increasing number of clicks.
If you want to start with native advertising, here are several platforms you can use:
Performance marketing tools for Affiliate Marketing
Usually referred to as a program, these types of performance marketing tools work very well. It is very efficient because you trust the content to a brand? The brand will make suggestions to you, but it also seems safe to follow the advice from a brand you know.
Here are our three picks for programs you can use to perform affiliate marketing:
Performance marketing examples: how your business can start growing!
Social media performance marketing example
Here are 4 quicks tips to succeed with your social media in your performance marketing strategy. It may seem short on advice but remember: quality content and connections are the key to success. Keep in mind that you are creating content for humans, it is supposed to be helpful to them so they can engage.
- Complete all the information (we insist on the “all”) on your social media profiles
- If you’re not sure of the content you want to create, check out your competition
- If you are sure of the content you want to create, check out again your competition
- Build a relationship with your community
Search Engine performance marketing example
By using the tools we listed above you can start a very effective engine performance marketing, but before using them let’s see if your checklist is complete.
- Do you have the right market fit?
- Do you know your customers?
- Which countries do you want to advertise in?
- At what times and for how long do you want to advertise?
- What keywords are appropriate?
- Are your ads set up correctly?
- What tool are you using to analyze your results?
Once you have answered these questions with your eyes closed, you may start advertising on search engines.
Performance marketing example: How to start doing affiliate marketing
Let’s start with a quick example!
A marketing intelligence platform wants to have more customers trying out their AI analytics tool, to do this they will contact a blog and ask for a link to be included to redirect to the product page. Each time a customer will go on this specific page and submit the free trial form, the blog promoting the link will receive a commission.
Side note: it is an example with our own AI tool, we will of course not get a commission with this example. Feel free to try out the tool though, it’s free!
To make it clearer here is how to start doing affiliate marketing:
- You must have a platform where you can use affiliate links, as mentioned above a blog, website or a youtube channel.
- Choose a niche and not an industry, if you like food you might want to focus on raw food recipes for instance.
- Join affiliates programs: high paying and low volume programs are good for B2B and low paying high volume programs are good for B2C.
AI increases your efficiency further
Performance marketing has proven to be one of the favourite marketing tactics in modern times and has been adopted by many digital marketing channels. With the help of AI, performance marketing can become more effective. Let us have a look at some of the aspects of artificial intelligence that help performance marketing to deliver better results:
1. Predictive Analytics.
With the help of predictive analytics, marketers can get an overview of future outcomes and prevent certain failures and adjust their efforts for better reach and better decision-making overall. You can act earlier and perform better.
AI enhances the personalisation of ads thanks to consumer-based repetitive behaviour-patterns and therefore improves the reach of potential prospects faster and easier. Also worth mentioning here is that thanks to AI personalization, the target audience will face fewer ads online and only see those ads that are relevant to them based on their demographics, interests and past behaviour online. Therefore, it is a win-win situation.
3. Content creation.
Content marketing is one of the most important drivers of conversions today. Content creation tools based on Artificial intelligence save time and money by accelerating the time needed for you to create unique content and well-targeted assets.
4. Uncovering insights.
With the help of AI, the marketer can receive new insights that could otherwise not be recognized. For example, in Email Marketing, AI helps to identify patterns where you can predict the amount of unsubscribes. Therefore, AI helps to increase the performance of an email marketing strategy.
Highly favoured by marketing agencies, performance marketing guarantees the attainment of objectives for both sides (agency & client).
Check out our case study with AdUnit and find out how they optimized marketing campaign performance with nexoya.