Artificial Intelligence (AI) has emerged as a technological powerhouse, revolutionizing industries across the board. From healthcare to finance, AI's transformative capabilities are reshaping the way we operate. One domain that has embraced AI's potential with open arms is digital marketing. [...]
Unlike traditional marketing methods, the concept of performance marketing stands out as one of the rising trends of our age due to the measurability of performance-based marketing efforts. The most important feature that makes performance marketing attractive for advertisers is undoubtedly the fact that marketing costs are based solely on performance, and high conversions can be achieved with successful work.
But what is performance marketing, which is known to be highly profitable for brands? What are the advantages of performance marketing for brands? What are the advertising channels used in performance-based marketing? We have answered all these questions you need to know about performance marketing for you in our article.
What is Performance Marketing?
With the millennium age, the technology process, whose speed of movement has gradually increased, has changed consumer habits and caused digital marketing to be preferred in many different sectors as a rising value.
Performance-based marketing, as the name suggests, is a marketing technique based on data and performance. The budget allocated by advertisers for marketing can be used in the most efficient way by analyzing and making sense of the data obtained through performance marketing studies.
In this respect, it is possible to say that performance marketing is a marketing method that makes brands that focus on return on investment happy. Performance marketing campaigns can be optimized as desired with the correct interpretation of the data obtained.
Unlike traditional advertising, in performance marketing, advertisers only pay for the clicks, views, and conversions they receive. In other words, to put it in more detail, the amount of money paid for ads in performance marketing can vary.
The cost paid for an ad depends on the frequency of views, clicks, or conversions.
The correct identification of the target audience, the auction bid, the quality score of the ads, and the conversion rate achieved are among the main factors that make up the success graph in performance marketing.
5 Advantages of Performance Marketing
The most essential advantages of performance marketing for advertisers can be listed as follows:
1. Unlike traditional marketing methods, performance-based marketing ensures that all work done on digital platforms is measurable. It is possible to instantly examine and analyze the conversions obtained from the advertising investments made.
2. Another advantage of performance marketing is that it can be evaluated and reported based on data.
3. Performance marketing is a method that helps brands connect with their target audience at the right time and through the proper channels.
4. The fact that data can be measured effectively in performance marketing also makes budget management possible. In this respect, performance-based marketing is a type of marketing where the risk ratio is kept low. The ability to track data in real-time enables quick action to be taken.
5. Performance marketing is an ROI-oriented marketing method. In other words, as a result of performance marketing efforts, only ads that are viewed, clicked, or converted into sales are paid for. Thus, the return on investment can be increased.
Performance Marketing Techniques
Performance marketing can be carried out in different ways in line with the needs and budgets of advertisers. It is possible to list them as follows:
1.Search Engine Optimization (SEO)
Search engine optimization is the work done to list the marketed product or service in searches in higher ranks through organic traffic. SEO works are divided into two different categories: on-site SEO and off-site SEO.
2.Search Engine Marketing (Search Engine Marketing/SEM)
In order to rank higher in search results, paid advertising on search engines can be defined as search engine marketing. SEM is among the most critical techniques of performance-based marketing.
3.Display Network (Google Display Network/GDN)
Google display network is a performance marketing technique that helps brands reach potential customers much faster and more effectively through Google's ad-supported services such as YouTube, Gmail, and Google Finance.
4.Social Network Advertising
Advertising campaigns created with the advertising tools of social media platforms such as Facebook, LinkedIn, Twitter, Pinterest, and Tiktok can be defined as social media ads.
The session information of people who visit a website is stored in small files called cookies. Remarketing, which is a performance marketing technique, is a target-oriented effort to show the ads of the relevant brand on different websites visited by these people.
Remarketing efforts are essential in building brand loyalty and increasing brand awareness.
6. User Experience Marketing (User Experience/UX)
All efforts to improve the experience of users visiting a website during the purchasing process can be defined as user experience marketing. Designing user-friendly websites that will bring high conversion is effective in the success of performance marketing efforts.
7. Real-Time Bidding (RTB)
Programmatic Advertising is an advertising model that enables advertisers to reach the right target audience and make purchases in real-time. The real-time data obtained in programmatic buying helps to automatically optimize digital campaigns.
Affiliate marketing, one of the most important parts of the performance marketing ecosystem, is a marketing method that generates commission per sale. In the affiliate marketing model with influencers or bloggers, the new actors of the digital world, an agreement is made with the relevant person to share the link of the product or service on social media channels.
As a result, the person with whom the agreement is made receives a commission from the brand for each product purchased from the link they share.
9. Native Advertising
Native advertising, which has been used on different digital platforms as a method of digital marketing for many years, is advertising efforts to sell a product or service to consumers naturally.
We have listed what you need to know about performance marketing techniques based on measurable data. We hope that what we have shared with you in our content will guide you when starting performance marketing efforts.
On the other hand, if you need studies that will grow your brand and deliver your products and services to your target audience in the right ways, you can contact Flatart, which offers 360° digital marketing services.