As advertisers pay marketing companies large deals of money, direct response advertising campaigns are working wonders. The. company’s digital marketing strategy can consist of search engine marketing, brand marketing and all kinds of digital advertising.
But how can companies maximise their revenue of investment (ROI) when choosing their marketing strategies? Not all companies are the same and that is why different strategies work for different companies.
Read our blog post to learn more about different performance marketing channels and what to know about marketing strategy in general.
Performance marketing in a nutshell
Performance based advertising means that you pay only for sales, new customers, newsletter subscriptions, app downloads, clicks, page views or whatever you decide is the preferred action.
Most common performance marketing channels are paid ads, where you pay based on links or banners clicked, page views or ad views. There is also affiliate marketing, where you pay the affiliate a commission, based on an agreed type of action. Usually purchases with discount codes or unique affiliate links.
- Pay-Per-Click (PPC) Advertising – This type of performance marketing involves different platforms, where you pay per click on ads, links or banners. The most common platform being Google Ads, which provides highly targeted audiences, where you can decide how your ad is being shown. This way you can ensure that you pay for the right kind of clicks from your preferred audience.
- Affiliate Marketing – Brands can collaborate with affiliate marketers, who promote their products in exchange for commission for each sale generated. This model is mutually beneficial and creates a risk free opportunity to get new sales, while only paying when the purchase is happening.
- Social Media Advertising – Large platforms, such as Facebook, Instagram and LinkedIn provide similar marketing opportunities as Google. Marketing strategy can be optimised for specific demographic groups and for specific objectives.
- E-mail Marketing – While the reach of the internet is growing, there are many companies which specialise in performance based e-mail marketing. There are some companies, which can charge a commission based on leads generated from cold e-mailing customers.
- Meeting booking with cold calls – Similar to e-mail marketing campaigns, cold calling is a more traditional but effective strategy when talking about performance based marketing. An increasing number of companies are offering services, where you only pay when they book a meeting with your sales representative.
Setting objectives for performance driven marketing
The most important thing in maximizing results in your marketing efforts, is setting clear, measurable objectives. If the goals are not well defined, it can be challenging to track the progress and determine how effectively your marketing strategies are performing.
Common objectives:
- Increasing website traffic and page views
- Generating leads or meeting bookings
- Boosting sales or direct purchases
- Improving brand engagement and visibility
- App downloads and newsletter subscriptions
Setting specific goals, businesses can align their marketing strategies and resources to achieve their desired goals.
Target specific audiences
The most important advantage in performance marketing is its possibilities to target specific audiences and customer profiles. Precise targeting makes sure that your marketing resources are used correctly in reaching preferred individuals.
Some common targeting strategies:
- Demographic – Customers age, gender, education, income
- Geographic – Location, countryside, city, or neighbourhood
- Behavioral – Use insights from browsing habits, purchase history and online activity
- Interest – Align ads with users’ hobbies and preferences
- Time – Show ads when your customers are ready to buy
Use compelling ad creatives
Performance marketing campaigns rely heavily on the quality of ad creatives, copywriting and visuals. Especially when talking about online marketing, since customer acquisition costs can be high. Well-designed ads can convert better and drive better results.
Here are some common ad creative strategies:
- Clear and concise – Include value proposition and a strong call-to-action to encourage immediate engagement.
- Attention-grabbing visuals – Use high-quality images or videos to capture audience interest
- A/B testing – Test multiple versions of your ad creatives to determine which elements resonate most with your audience.
- Relevance and personalization – Personalized content outperforms generic messaging, leading to better engagement and conversion rates.
Data and analytics in performance marketing
Analytics and data utilization are essential for optimizing marketing campaigns and maximising ROI in marketing campaigns.
How to make the most of your data:
- Monitor key metrics – Track important metrics, such as, click-through rate (CTR), conversion rate, cost per acquisition (CPA), and return on investment (ROI). These numbers help evaluate campaign effectiveness.
- Analyze user behavior – Utilize tools like Google Analytics to assess how users interact with your website. Remember, that user actions differ in social media marketing or search engine advertising.
- Regular performance reporting – Use up to date reporting to monitor campaign progress and identify areas for enhancement. Use these insights to refine strategies and make data-driven decisions.
Continuous optimization for improved results
Performance marketing requires continuous experimentation and optimisation to sustain and improve the ROI.
How to keep your campaigns performing at their best:
- Regular performance analysis – Consistently check your campaigns and make necessary improvements. Identify trends and patterns to help fine-tune your approach for better results.
- Improve ad creatives – Update your visuals and copywriting from time to time to prevent ad fatigue and maintain audience engagement.
- Experiment with different strategies – Try out different tactics and platforms to uncover new opportunities for growth. Ongoing testing ensures your campaigns remain competitive.
- Stay ahead of industry trends – Digital marketing evolves all the time and performance marketers need to be constantly evolving.
Make things easier with Circlewise.io
Successful performance marketing requires marketing strategies, precise audience targeting, interesting ad creatives, data driven insights, mobile optimisation and many more.
With the help of Circlewise, we bring you affiliate marketing collaborations, where you get measurable results. Contact us for performance marketing campaigns, which give you cost-effective marketing results
