Performance marketing is simply marketing where advertisers pay for known results, such as clicks, engagements, leads, etc. Clients pay an agency based on the results they actually generate form them, not on the time they spend working campaigns. It ties directly into today's data-driven digital marketing approaches. Unlike with traditional media like TV and print, where it would be near impossible to track views and engagement, advertisers can now easily track their campaigns’ performances on search and social media, like the clicks your landing page receives, the views on your post, or the revenue generated by a specific Instagram influencer.
Performance marketing is especially effective today because it can be easily tracked and quickly adjusted to business strategies (i.e. take down non-performing ads in favor of better ones).
How does Performance Marketing help?
In the traditional agency model, businesses take a gamble based on an agency's reputation or the strength of their pitch. In a perfect world, great online reviews and sales pitches will always translate directly into marketing success.
However, this isn't always true. There are things that can go wrong when marketing campaigns finally go live. Worst case scenario, advertisers get stuck with marketers that are unqualified, inexperienced, or simply unlucky with their initial strategies.
Performance marketing dramatically reduces risk. Advertisers can engage with an agency but pay them only when they begin to deliver concrete results. This type of arrangement eases the pressure on advertising budgets and reduces costs. On the opposite end, it protects clients from paying for poor performance. Advertisers start to spend more only when they are put in a good position to earn more. It’s a safer, more sustainable way to scale marketing and gain new customers without ruining operating expenses.
Why is Performance Marketing so popular?
The factors stated above may seem compelling enough, but the real popularity of performance marketing comes from the fact that it helps businesses market themselves in a more data-driven way.
Marketers used to get by on instinct and guesswork. They’d get an intuitive sense of what their customers wanted to see and then they’d try their best to give it to them. It wasn’t a reliable way to get to the bottom of the age-old question: what’s the best way to convince people to spend on my products and/or services? Performance marketing relies on data in order to work, because the marketers you hire can’t get paid unless they have concrete metrics to show. This creates more exposure to the analytics behind marketing performance, and can provide more insights about the factors that contribute to business’ success. It’s a great opportunity to see the analytics behind marketing like never before.
As more marketing data is analyzed and understood, smarter and more evidence-based decisions about how to allocate marketing budgets and how to reach next sales milestone are established and implemented.
“People often ask me why I choose to focus on performance marketing over other methods. In an industry that celebrates gut feel and creativity, my niche is often overlooked,” said Bassem Saber, Head of Performance Marketing at Igloo, a leading digital marketing agency in Dubai. The plain and simple truth is that performance marketing works. It has allowed us to get great results for our clients and bag a handful of major awards in the process.
Increase your ROI
Each business successes is the direct result of choosing the harder (but ultimately more rewarding) path to marketing. Always keep track of data and analytics to det ermine the best performing strategies, then allocate budgets accordingly. Performance marketing can be the answer to growing leads and sales and increasing ROI. For more information please visit www.weareigloo.com
