Performance Marketing is a form of digital marketing which is paid only when a specific results which is wanted is achieved. These specific results can be a new lead, a new sale, or any other outcome which is agreed upon by the advertiser or the business. A performance based marketing has a series of events or outcomes. Few of them are lead generation, product or service being purchased, application downloads, sponsored contents, paid advertising,etc. Performance based marketing involves a few groups of people and all of them work together to achieve the desired results. These groups are retailers or merchants, publishers or affiliates, networks and platforms and outsource programme managers. It involves different channels for campaigning performance based marketing. Often, this type of marketing is data-based and are highly targeted on a specific group of people.
Let’s talk about how performance based marketing works or what are the channels of performance based marketing. A few of them will be discussed here
Social Media Marketing- Social media marketing is the most widespread and is used by every person to gather information and buzz around the world. In social media advertising, one can advertise their brand to their audience. But one has to analyse on where most of the audiences can be attracted. Examples of social media marketing are Apple’s shot on iPhone and Oneplus’ camera capture and their tagline shot on OnePlus. Many clothing and accessories brands often reach out to instagram and Facebook for advertising their new collections or to inform for any sale. Their performance metrics often include the number of likes on their pages and posts, the interaction with the audiences for upcoming new launches and to determine customer’s wants, their comments received, sales and checkouts, etc.
Native advertising- Native advertising is a way of advertising which works works well in the medium it is published on. Certain examples of native advertising involved getting paid search results, pay per click advertising, promotional advertising like on Amazon and flipkart where the opening homepage gives several sponsored listings of the accessories and gadgets that can be bought from the website. This type of advertising is mainly used for re-targeting customers who leave their items to be purchased in the cart.
Pay per click advertising or search engine marketing- Pay-per-click advertising is a form of advertising where the advertiser bids on key-terms or the keywords and pays for the number of clicks that they get. One can analyse their organic search results and the paid search results. These advertisements are paid for only when an online user clicks on that particular link. Pay per click advertisements look like text ads, shopping ads or the display ads. Examples of pay per click advertising can be any of the Amazon advertisements on pop-ups, etc
Affiliate Marketing- Affiliate marketing is another type of performance based marketing where a company compensates or pays another third party publisher to generate traffic into their website or for other reason like for generating leads into their website, here, leads generally mean sales generation or click-throughs, etc. In affiliate marketing, there can either an attachment with the product or service to be marketed or advertised, or there may not be any attachment at all with the product or service which is marketed There are several types of affiliate marketing, some of them being unattached affiliate marketing, related affiliate marketing and involved affiliate marketing. Examples of Affiliate marketing include Amazon affiliate programmes, email auto responder Aweber.
Content marketing- Content based marketing is another form of performance marketing where the focus is on creating, publishing and distributing contents to the targeted audience. It is mainly used for the purpose of generating leads or sales, expanding customer base, increasing brand awareness and to engage online customers. Content marketing is solely based in what the customers want or desire. These desires are fulfilled then by the marketers through certain channels like news, video contents, e-books, podcasts, etc. Content marketing can be in the form of texts, audio clips, videos and images. Here, the performance measure can be which content is trending or is reaching to a large mass of audience, how many are repeated visitors into the webpage or website, etc This type of marketing generally creates brand equity or brand recognition and awareness and adds value to the brand. It also creates organic traffic into websites and search engines. Certain great examples of content marketing are Coca-Cola’s share a coke campaign, American Red cross’ #Doing My Part, etc.
To conclude, one can say that performance based marketing is an essential and crucial way of analysing marketing campaigns and to make decisions on how to market products and services. It’s main aim will be to generate leads, but also, certain other aims will be go educate the audience, to understand how the marketing strategy is performing, set measures for performance for comparison and improving according to what users and customers will expect.