Not everyone can afford all-out budgets for marketing activities. Some businesses even view ad creation and publishing as a cost-center instead of income-generating. In some cases, that’s true. However, recent marketing methods now take your budget into consideration such as performance marketing.
This strategy effectively delivers your message to targeted leads with a budget you can control from start to finish. Read on to know which channels work best with this marketing program.
In this article:
- With performance marketing, advertisers pay for the actual performance of an ad campaign such as clicks and engagement generated from it.
- It’s a desirable strategy for marketers because you pay only for the result it yields.
- Advertisers have full control over the ads’ messaging, publishing, and budget.
Understanding Performance Marketing
Running marketing strategies connects you with various leads for your business. But how do you know which ones are worthy of your time, effort, and most importantly, money?
Increasing ROI will always be the main goal for any marketing strategy. That’s why it can get frustrating when some strategies just don’t work right away. They have to be scrapped or modified because there wasn’t enough of an increase in ROI. These days even one single percentage point could mean more millions of dollars spent just to increase success rates!
But there is a way to mitigate high marketing costs while still gathering the data needed from target leads: performance marketing.
This marketing method is just as it implies, advertisers pay for the actual performance of that ad campaign. It’s a desirable strategy for marketers and business owners because you pay only for the results it yields.
How It Works
How exactly does performance marketing work?
To put it simply, marketers set up campaigns in multiple channels, such as display ads, video, multimedia, traditional print, native, and social media.
With performance marketing, only leads that actually engage with your ads are paid for. You set criteria that would be considered as a successful engagement such as clicking on the link or opening a landing page for your business. From there, you now have a list of leads to email, follow up, and guide through the sales funnel.
To entice these prospects to engage with your ads, you need to publish valuable content with high-impact visuals and formats. The only way to create such ads is to gather reliable intent data.
N.Rich’s ABM platform collects intent data and gives you full control over the campaigns you run. We continuously develop our technology to ensure accurate and useful information for the success of your marketing strategies.
Performance Marketing Channels
Several performance marketing channels deliver the results your business needs. Through these channels, valuable content is delivered strategically to targeted leads. Then, engagement is recorded whenever a prospect takes action like clicking on a CTA button or website link.
Some channels have been proven to produce commendable results over others.
PPC or SEM
When you search for a product or service on Google, the first few results are usually paid ads or Pay-Per-Click ads. It’s one of the highest-yielding performance marketing channels on this list.
Marketers determine their target market based on certain characteristics: location, interests, industry, etc. People then see these ads as they search for related terms without being too invasive or spam-like.
You can measure PPC ROI as well, which makes it more desirable for business people. To calculate the ROI from this performance marketing channel, you just need to deduct the cost of investment from your gain then divide it by your cost again. Then multiply the result by 100 to get the ROI percentage.
For example, if you gained $100 from a product you advertised for $1 per click with 30 people opening the ad, then you have an ROI of 400%. That’s a huge ROI margin.
ABM Display Ads
This type of performance marketing is new to the market, and it provides the capability to launch ads directly at target accounts all over the web, so you don’t have to wait for people to search for it, or accidentally stumble across it while scrolling social media.
The best part about it is that it delivers performance metrics unheard of in the advertising space, such as target account engagements.
N.Rich is the superior ABM advertising platform to deliver such capabilities.
Some people say email marketing already lost its effectiveness in increasing ROI. However, when it comes to sending personalized content that attracts potential clients, it’s still highly effective.
Emails can be sent out as a follow-up for those who signed up with your lead generation campaign or as a regular newsletter for existing clients.
It can also be used to suggest products or even announce new services you’re offering. Emails keep the leads already connected with you updated with the latest news and offers from your company.
Over the past few months, businesses forced to go digital found social media as an effective means to continue operations even in the midst of a global crisis.
Facebook and Instagram have long dominated the business side of social media but now, Youtube, LinkedIn, and even TikTok have been taking a piece of the pie as well.
Reaching out to target audiences on social media can be done organically but it may not be as effective as paid or boosted content — unless the post goes viral and reaches millions of people. Boosting your content is still the best way to promote your ads on this channel.
Performance marketing in social media tracks the following metrics:
- Engagements (likes, comments, and shares)
- Completed sales or checkouts
- Filled out forms
You have full control over the posts you boost on social media. You also get to conduct A/B tests on your ads and figure out which ones work and which ones don’t.
How to Ensure Performance Marketing Success
These effective channels will provide you with the revenue you need. However, using any of them will be pointless if you don’t have content that effectively addresses your target audience’s needs.
N.Rich takes pride in providing you with accurate intent data to help you analyze your prospects’ needs. With our platform, you’ll get to see each prospective client’s buying journey throughout their interaction with your content. Armed with this data, you can then produce the best content to solve their concerns thereby improving your chances of converting them into paying clients.