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Performance marketing is a digital marketing strategy where brands only pay for results. In this system, businesses only pay the marketing companies when their specific objectives have been met. That ensures that they don’t waste their money on advertising schemes that are bound to fail.
These campaigns are usually equipped with real-time tracking capabilities to let you and the marketing agency monitor their performance. They are usually highly targeted at a specific audience with a wide reach across various channels. Plus, you still benefit from the increased visibility, even when the marketer doesn’t achieve your goals.
Many companies employ these strategies to boost their E-commerce businesses, and you can too.
Steps to Follow When Boosting Your Business With Performance Marketing
The benefits of this marketing style are clear, but you still have to follow certain steps for maximum success. They include:
- Set Out Clear Objectives And KPIs: This is an essential part of the process. Your campaign goal will determine what KPIs you will track and what payment strategy to use.
A company that wants more site traffic could use a cost-per-click (CPC) strategy. This charges for every click on your link. Businesses searching for more visibility could go for a cost-per-impression (CPM) arrangement. This charges for every thousand views of your ad.
These two businesses would use different KPIs. The first would track their site visitors, while the other would focus on their search impression share.
- Know Your Target Audience: Performance marketing works best once you select a target audience. This doesn’t end with determining who they are. You should know their interests, preferences, and behaviours.
This would help you pinpoint your audience with laser accuracy.
- Select Your Channel Mix for a Multi-channel Approach: Once you know your audience and their preferences, pick the channels you’ll place your ads on. You can’t place ads everywhere as your budget isn’t limitless, so ask yourself one important question.
What platforms will you find your audience?
Once you have the answer, you’re ready to go.
- Create Compelling Ad Content: Your ads may appear on your target audience’s screens, but if your copy isn’t compelling, you won’t benefit. You would even lose money in a CPM model.
Craft your ad copy with your audience in mind. Prove to them that you are aware of their needs and are providing value to them. Incorporate calls-to-action (CTAs) that encourage users to take your desired actions.
- Track Your Performance and Optimise Accordingly: Ensure to monitor your performance as your campaign progresses. Determine the channels that are underperforming and tweak your efforts.
Some channels may perform higher than expected. In this case, you can reallocate some resources from underperforming channels to them.
Performance marketing strategies are crucial to your company’s growth. These campaigns boost your E-commerce business with cost-effective advertising models that can be easily tweaked for the best results.
Understanding the basics of these strategies would help your business, but they require constant monitoring, testing, and adjustments for the best results. You can employ the services of an ecommerce marketing agency to manage your campaign with their wealth of experience. Do that and watch your business bloom.