What is performance marketing?
As the name suggests, in this form of marketing, advertisers only pay based on the performance of their campaigns and the amount depends on how many people actually saw their ads.
One of its great advantages is that it allows brands more flexibility and the security of paying only for the desired results. But to make the most of performance gambling phone number data marketing strategies , you have to choose the right tools and channels that can maximize the reach of your campaigns. In fact, the relationship between performance marketing and ROI is closely related to these tools and channels, as we will see below.
Performance Marketing Tools: Examples of Strategies
Affiliate Marketing
Affiliate marketing is one of the most productive performance marketing methods, significantly improving brand customer acquisition and sales while being cost effective.
Here, brands collaborate with partners, who promote the company's products on their websites and other media. A partner earns a commission every time a sale is made through their referral links. Moreover, it is one of the few forms of advertising where marketing expenses are paid only after the sale . This feature makes this performance marketing tool attractive for reaching many new, otherwise inaccessible customers with minimal investment.
Performance marketing on social media
What makes social media the most effective performance marketing channel is the sheer number of daily active users who log in to one platform or another every day.
That's why social media has become the primary content distribution channel for performance marketing specialists, as each social network has a highly engaged niche audience , and brands see it as an opportunity to scale their campaigns quickly or reach and acquire new users.
Moreover, it is also a good channel to increase brand awareness and educate users about the corresponding products and services. As a result, brands and advertisers have significantly increased their investments in social media advertising on popular platforms such as Facebook, Instagram, TikTok, and Twitter.
Native advertising
The best feature of native ads is that they don’t appear like paid ads. Why? Because they blend into the websites where they are displayed, replicating their design, content, and tone . Therefore, this performance marketing channel works exceptionally well compared to traditional advertising, which is very intrusive and frustrating for customers.
According to various studies, native ads get more than 50% more views than standard banner ads, significantly improving brand ROI . In fact, native advertising is expected to reach $400 billion globally by 2025. The native ad typically appears as a suggested article at the bottom of the website or in the news feed , based on consumers’ interests and viewing history.
PPC ads
Brands use SEM, which is based on posting PPC ads, to appear at the top of SERPs and increase sales. That is why SEM is one of the crucial channels in performance marketing.
Advertisers pay when a user clicks on the ad . It gives excellent results when combined with native advertising and SEO. With a carefully designed and executed SEM strategy, brands can increase their ROI in no time. If you are wondering what ROI is, check out our published article .
Programmatic display advertising
Programmatic display advertising is a popular performance marketing channel where advertisers leverage audience segmentation data to help brands strategically deliver ads through contextual targeting.
For example, if you run a home furniture brand, the best places to display your ads will be blogs in that niche. These sites multiply the chances of conversion. The reason is that people who read or visit these pages usually have some sort of interest in your brand and other similar ones, due to the subject matter.
The benefit of this performance marketing strategy is that companies can continuously access the same audience. Thus, they develop a stable and fruitful relationship with it. You can even obtain valid data that will be used later to predict the behavior of said audience, something we can do with Real Time Marketing . Unfortunately, although advertisers use programmatic display ads very frequently, the average click-through rate of this approach is only 0.05%. Therefore, we can say that it must be combined with one of the other proposed channels.