Performance marketing is a type of marketing strategy that includes online marketing and advertising programs. Typically, marketing companies and advertisers are paid whenever a specific action is completed – such as a sale, a click or a lead.
As more and more businesses are turning towards digital marketing from traditional marketing, performance marketing is gaining popularity. That’s because it enables marketers to optimize their campaigns for outcomes such as growing conversions, increasing website traffic or getting leads.
Let’s take a look at some reasons why your business should consider performance marketing.
Unlike traditional campaigns, performance marketing campaigns are much easier to budget for. This is because performance marketing enables marketers to identify clear goals and estimate an ideal cost for action.
It is based on a number of digital metrics that enable marketers to track performance. Metrics such as time spent on page, number of impressions, clicks and conversions can be used by marketers to draw near-instant insights and results.
Pay for Results
One of the biggest benefits is that you only have to pay for results without any defined overhead. This means that marketers will need to optimize their campaigns for results, making it much more cost-effective compared to traditional campaigns.
Discover New Formats
It is an overwhelmingly digital form of marketing that enables businesses to discover new formats and opportunities. It can even enable your business to target hard-to-reach audiences.
Pivot in Real-Time
Performance marketing provides instant feedback to marketers throughout the campaign. This allows marketers to adapt and pivot in real time for optimal results. Adapting and pivoting in real time yields better results – within original campaign budgets.
We can only expect that more and more businesses will take to digital marketing and that performance marketing will soon replace traditional forms of advertising and marketing completely.