What do you get when you cross digital marketing with a results-driven attitude? The answer is performance marketing! We’ll teach you all about it, from what it is to how to use it effectively.
Performance Marketing Is a Subset of Digital Marketing
Performance marketing is a subset of digital marketing. It’s a broad term that includes email, search engine optimization (SEO), mobile ads and many other tactics that aim to get website visitors to take an action such as making a purchase or signing up for an event.
Performance marketers use data from analytics tools like Google Analytics to understand how their customers are interacting with their products and services online before creating strategies for reaching those prospects again in the future.
Performance Marketing Is Results-Based
Traditional advertising is a “spray and pray” approach, where you buy as many impressions as possible and hope that some of them convert into customers. A lot of money can be wasted on this kind of marketing, especially if your target audience isn’t targeted correctly or has poor targeting in place.
Performance marketing takes a different approach: it’s results-based, which means that you focus on getting specific types of leads who are more likely to buy what you’re selling. The best part? Performance marketers have tools they can use to measure the effectiveness of their campaigns and make sure they’re not wasting time or money on ads that don’t work!
Because performance marketers are accountable for each dollar spent (and because it’s easier to track how well an ad performs), they’re able to spend less than traditional advertisers do—which means you’ll get better value out of every dollar spent with a performance marketer than with an agency whose only concern is spending money until it runs out!
Performance Marketing Is Tied to Key Performance Indicators (KPIs)
If your business is like most, you use key performance indicators (KPIs) to measure the health of your company. KPIs are used to make decisions, track progress and measure success. They’re also great for making improvements in areas that need attention.
In the context of marketing, KPIs are used to determine how well a campaign or strategy performed. For example: did it reach its objectives? Was it cost effective? How many leads did it produce? You can also use KPIs to evaluate specific tactics like social media engagement or SEO rankings against goals set by other departments within your organization; or even just as a way to track how things are going over time so you can adjust accordingly if necessary.
Performance Marketers Are Data Driven
In order to help you optimize your efforts, we use data to make decisions and help us make better decisions faster.
To do this, we have access to all the tools you need: Google Analytics, HubSpot Marketing Platform and Facebook Ads Manager (to name a few).
Performance Marketers Optimize Their Efforts Using Data
Performance marketers use data to optimize their efforts, from the marketing campaign itself to the customer experience and everything in between.
For example: If you’re running a paid search campaign for your retail store, you can optimize your ads based on what’s already been working well—and then test new strategies by A/B testing different combinations of copy, calls-to-action and landing pages.
Of course, this is just one example; performance marketers will use all sorts of data points when it comes time for optimization!
Conversion Rate Is The KPI That Most Performance Marketers Focus On
A conversion rate is the percentage of people who take a desired action. For example, if you have 100 visitors to your website and 20 of those visitors purchase something, the conversion rate is 20%.
The conversion rate is a key performance indicator (KPI) that helps you measure how effective your marketing campaigns are. It’s important to note that not all conversions are equal—some can be worth more than others in terms of monetary value or brand awareness. But no matter what type of conversion you’re tracking, it’s always best practice for marketers to set clear goals for each campaign so they can track their progress against those goals.
Conversion rates vary widely depending on two main factors: the industry in which you work and the channel(s) through which consumers make their purchases from your business
It’s All About Numbers Pushed Back By Your Data
Performance marketing is all about numbers. This means your goal is to measure, analyze and optimize your results so that you can show an impact on the bottom line.
The data in performance marketing comes from several sources:
- Data collected from a website’s analytics software, such as Google Analytics
- Data collected via cookies and other devices that track activity across multiple sites (this data may be collected by third parties)
Performance marketing is a great way to test, iterate and grow your business. Performance marketers utilize the data that is provided by their efforts to optimize their strategy in order to continue to improve results. Performance marketing is such an effective model because it’s based on real-time data and insights from actual customers, not just assumptions or predictions of what might work best for them. We hope you’ve learned a lot about performance marketing—what it is, why it works so well for many businesses, how important data-driven insights are when you’re trying new things…and more! Are you ready to maximize results with performance marketing? Schedule a free consultation with Mavericks Marketing today!