Updated: September 27, 2022
Last week in this series we brought you what performance marketing is all about. It is basically online marketing and curated advertising programs in which advertisers pay a commission to publishers or affiliates when a desired action is completed example a click, lead or sale to an ad.
Now let’s get into the benefits of the most crucial aspect of marketing!
Track and measure your actual marketing performance and ROI
The biggest advantage is you only pay for successful transactions done via the net. Each transaction is based on a defined action taken by the customer, whether making a buy or signing up for a subscription by the advertiser. You will be able to track EVERY SINGLE CLICK on your ad, instead of spending major bucks via the traditional media route and not knowing if those ads result in actual sales. This type of marketing gives you the ease in measuring your ultimate ROI from the actions taken. You can assess your goals based on conversion which allows you to judge the real benefit from a campaign (i.e. 1000 sales with an average value of 50 dollars)
So note down one thing, the trackability isn’t based on approximations but on actual results where accuracy is effectively determined down to the click of the mouse!
Optimize marketing efforts with a focus on what works
The result of subsequently measuring performance brings you to optimize your campaigns. You can be sure of which specific activities relates to results, therefore you can concentrate on the ones that works better and discard the non-performing strategies. You can also establish periodical control tests to make changes within a campaign as results are monitored in real time. In short, this generates effective advertising.
Manage your advertising budget with increased efficiency
Knowing your results gives you the advantage to eliminate the need to support opportunity costs as investing in a campaign without knowing the outcome. In this marketing channel, the risk is minimized as you only pay for the agreed results. You can also gauge the exact cost of the campaign before execution as well. Hence, this enables you to plan your marketing budget wisely.
Your revenue stream is diversified
This is definitely another route for mitigating sales than just depending on your current marketing channels. So instead of just focusing on your social media, SEO, offline promotions and campaigns, this is a good way to branch out. If sales begin to dwindle in other platforms, performance marketing gives a good boost in tough financial times.
Publishers boost creativity and innovation to your marketing strategy
Publishers are an enterprising and assertive lot. Their prime objective is to earn the highest commissions by driving more traffic and sales toy our site. Therefore, they will try new strategies and are often more quick in launching new campaigns in a short span of time. In this regard, your company may not have the time or resources to coordinate such efforts.
Extend your marketing reach
Affiliates can promote and market your campaigns in specific niche areas which you might not have access or knowledge of. Sales can be doubled when targeted to specific niches and vertical markets. An affiliate can have a targeted site for fashionistas which could broaden your product exposure and attract sales in a market you might not even think of.
In retrospect, performance marketing is a powerful tool in our digital world that results in great advantages for your business and sales.
Next, stay tuned about the Types of Performance Marketing in our next Performance Marketing Series article.
and how our Affiliate Discovery program can help your business optimize your ROI.