The Role of Performance Marketing in Digital Marketing

Performance marketing refers to the type of marketing in which a brand pays to the marketing company only when the business's objectives are met or when any specific actions are done. The objective of the marketing companies may be clicks, leads, sales, etc.

In performance marketing, an advertiser connects with the agencies or the publishers which makes an advertising campaign to place an advertisement of their company on different marketing channels. These channels include social media, search engines, videos, embedded content, and others. Payment for the marketing agency is based on if the advertiser has successfully achieved the ad performance goals. These goals are identified by the quantifiable target like the number of clicks, impressions, sales, shares, traffic brought on the website, etc. 

78% of marketers say that performance-based advertising is more effective than traditional advertising methods (eMarketer)

73% of marketers believe that performance marketing provides more ROI than any other digital channel (AdRoll) Conversion rates from performance-based campaigns are typically 20-30% higher than those from other types of online advertising (iMedia Connection)

If you're looking for a way to improve your digital marketing efforts and get better ROI, consider adding performance marketing to your mix.


How Performance Marketing Works

Performance marketing is when a business keeps track of the effectiveness of the marketing campaign. Businesses keep track with the help of quantifiable metrics to effectively get the best ROI for the marketing campaign led by the marketing agency for them.

Performance marketing is done for multiple reasons but the most important reason is to increase the sales and ROI of the business.

Some common performance marketing strategies include:

PPC (Pay-per-click) Advertising: in pay per click advertising the businesses bid on certain keywords which is believed to deliver the result when a potential customer searches the product and clicks on one of their ads. When a user clicks on the advertisement then the advertiser pays an amount. A PPC campaign is an effective method to bring traffic to the website of the landing page but it is also important to keep track of the conversion to know if the campaign is effective or not. 

CPA (Cost-per-action) advertising: CPA advertising is one in which the business only pays the customer for action, such as signing up for a newsletter or making a purchase. It is seen as a more effective PPC because in this type of advertising the businesses only pay for the results. Taking action is quite difficult as there is no guarantee that every person who sees the ad will take action. Mobyink Innovations provides the Best PPC Marketing Services in India.

Affiliate marketing: a marketing campaign in which a business partner with other websites of the influencer to promote their services or products.

affiliate marketing is a very effective marketing strategy at present. This is because the business only commissions the collaborator or the advertiser when there is a sale or lead generation by their effort. Affiliate marketing can effectively reach new customers, but it's important to select partners who will align with your brand carefully. 

Influencer Marketing: Influencer marketing is similar to affiliate marketing, but businesses partner with social media influencers instead of websites. These influencers have a huge fan base which they leverage for advertising a product on their social media pages and their fans consider their recommendations. This is a very effective way of promoting a product or service but a top-notch influencer can be costly to hire.

Email marketing: An email marketing campaign is done by sending some promotional messages or newsletters to the subscribers. This can be an effective way to keep the customer updated about the product or services and drive sales. 

Virtual influencer:  A virtual influencer is a computer-generated imagery or CGI character made with the use of sophisticated artificial intelligence, machine learning algorithms, and natural language processing. These technologies allow the virtual influencer to interact with real-world audiences in a way that is natural and authentic.

A Virtual Influencer Is a New Way To Connect With Consumers

Top Performance Marketing Channels are:

Paid Search: It allows users to bid on specific keywords and reach potential customers.

Display Advertising: You can target specific demographics based on their age, gender, interest, etc. These ads will be displayed on the website and the target audience is likely to click on it.

Social Media Advertising: social media have a huge user base and it is only about segmenting a specific user base and advertising. 

Get the best result with Mobyink Innovations, we are the Best Social Media Marketing agency in India.


Benefits Of Performance Marketing

  • Quantifiable data and Insights: In performance marketing, we get quantifiable data and insights which help businesses make informed decisions.
  • Flexible Campaigns: In performance marketing, it is easy to modify or scale up or down according to how the campaigns are doing.
  • Increased Brand Awareness: Performance marketing is essentially a marketing campaign that also helps the business to increase its brand awareness.
  • Increased Leads and Sales: a perfectly optimized campaign also helps increase leads and sales.


Why Performance Marketing is Better

Performance marketing is essentially better than traditional ways of marketing; it helps us work according to the predetermined goals and objectives. Working on pre-determined goals and also helping the business redefine the campaign accordingly to get better ROI. 

Performance Marketing can be used to keep track of performance, marketing activities, conversion rates, lead generation, sales generation, and website traffic. Studying the data of performance marketing can help us identify the trends and determine what steps needed to be taken to improve the performance. A successful digital marketing strategy will also consider other factors, such as customer experience, brand awareness, and overall business objectives.


kapil Thakkar

Kapil Thakkar

Alumni of St Petersburg State University & IIM Ahmedabad.

Hi Folks, I’m Kapil Thakkar, CEO & Founder of Mobyink Innovation Pvt Ltd. I love technology & it has always been a fascinating for me to see how world is changing. I keep an eye on new IT perspectives & pen down here. Would love to connect with you, if you have the same interest.

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