With fierce competition emerging in several markets online and offline, businesses have a plethora of marketing techniques they can employ with the intention of promoting their brand and improving their presence.
Performance marketing has stood out to be one of the most integral techniques that marketers can use today to successfully extend their advertising reach with the most optimal spend. This technique is essentially based on the concept that a marketer will pay an advertising fee or commission, only when a specific, desired action is completed. The most common payment models that can be used are Cost Per Acquisition (CPA), Cost Per Lead (CPL), Cost Per Click (CPC) and Cost Per Thousand (CPM). Payment is made once the required result varying across each of these models is successfully achieved. Performance marketing campaigns have proven to significantly build brand awareness, improve engagement and generate higher sales in the most lucrative manner. It has been observed that the cost-per-acquisition is also lower while making use of these strategies. Besides being cost efficient, performance marketing shines out amongst other conventional marketing techniques because it allows an advertiser to measure and track incremental progress through a completely transparent system. Brands have complete clarity on the click-to-consume path of a buyer, the channels that are producing the greatest return on investment, and are able to gain insight into areas that require optimization for overall growth. The element of risk is also greatly reduced while implementing performance marketing campaigns while comparing it to other generic marketing approaches. These other techniques usually involve high costs and no guaranteed return, whereas in performance marketing, payment is made only once a successful action has taken place. Another point of focus is that performance marketing techniques allow an advertiser to grow a brand without the use of conflicting marketing channels. Brands can focus on building customer engagement instead of directing energy towards budgets and measuring returns from separate channels, as this information is available at the fingertips of a marketer employing the performance marketing approach. Progress can be measured and evaluated with each and every click. Lastly, by using publishers and affiliates across various platforms, performance marketing gives a brand the opportunity to widen its reach to markets and areas that they may not have access to. Brands can tread into specific niche markets which can greatly increase product exposure. Since performance marketing as a concept is based around transactions based on consumers taking a specific and defined action, marketers are able to clearly see the tie between costs and results. There is no wastage of funds and the amount spent is based on tangible results rather than estimates, which throws light on the fact that performance marketing is an outstanding technique and will hold a company in good stead, compared to other traditional methods.
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