Performance marketing is a term attributed to online marketing used to track every single click, lead, or share. It is quite unlike conventional marketing campaigns. Businesses pay for such online marketing campaigns since digital or social media is a norm now, just like a basic need it is.
Nowadays businesses are spending millions of dollars on these online marketing campaigns which are helping them greatly to sustain their position in the market and make them encounter a large audience as well.
Statistics So Far
Digital marketing has been growing with a speed of light indeed. In fact, in 2020, about 3.6 billion people used social media channels, spending more than two hours online daily. It is anticipated that by 2025 the number of users will have grown to more than 4.4 billion.
It is evident from such statistics that every other E-commerce store will need to do performance marketing to stay in the market in near future.
Performance Marketing and E-commerce Stores:
What if you are running an online store of books and someone asks you to stay in the market without any Instagram page, Facebook page, or any website/application.
You will surely consider that the other person is goofing around or joking. It is because we all know how much such social media accounts are important when it comes to online businesses. It is because this medium ensures the existence of your presence in the market.
Since you do not have a physical store, your presence can become skeptical or suspicious but only such accounts can verify or ensure your existence to a great number audience.
Performance marketing has become my favorite tool of e-commerce businesses lately since it not only gains the attention of the audience but as well as assists in the estimation of clicks, shares, and sales. This means you will have a quick look that how many people window-shopped you or how many were the actual buyers? It is quite unlike using conventional marketing and far more calculative than conventional marketing.
Tools Of Performance Marketing:
Indeed every other work has got some tools to be done. As in baking, one needs flour, beater, or spatula similarly in performance marketing there are some tools required to help your e-commerce business to grow rapidly. These are as follows:
- Search Engine Advertising
- Display advertising
Search Engine Advertising
Search engine marketing (SEM) is not a new tool used in performance marketing. It is to date some of the most effective pathways so far in the digital marketing world. SEM includes pay-per-click (PPC) advertising, which encourages every other potential customer to see the advertisement at the top of a search engine.
This is an immensely cost-effective way of advertising for two reasons. First and foremost, your eCommerce business only pays when a potential buyer clicks your link. Second, anyone clicking that link is more likely to purchase your products because they have already shown an interest in them.
It was quite a popular way of marketing back in the day as banner advertising basically but recently people from all across can be seen blocking them or dodging them out. This is a clear indication of how much this method has been depreciated over the period.
Looking closely, one has to find out a way out since this method has not been completely replaced by search engine advertising. This means it is still in the market and can be used by eCommerce businesses creatively.
Businesses should focus on creating a banner that is appealing, positive, and at the same less tiring to understand. In this way when one will visit your website, he will not end up blocking the ad but rather end up appealed by you.
How to Build a Performance Marketing Strategy:
Every other person is aware of the fact that one can not succeed without planning and strategy. It gets really important when you are devising a lead generation strategy or planning a promotional campaign to ensure you have a plan in place.
Below are some tips shared by us:
- Establish your campaign goal
- Choose your digital channel(s)
- Measure and optimize your campaign
- Handle potential pitfalls
Pros of Performance Marketing:
There are numerous reasons why every other e-commerce business should be using performance marketing. So let’s dig into it:
1. Easy-to-track performance:
Since there are numerous data analytics tools are available particularly for performance marketers to keep a tack on the pulse of performance campaigns and adjusting them to get better results is easy.
2. Low risk:
This helps greatly to launch any campaign briskly. It is now easy to judge loopholes and reduce the risk immediately if anything sounds inappropriate. Marketers can use data analytics tools and judge if their campaign is a success or not and can immediately stop it if it is not.
Performance marketing is guided by ROI enormously so the focus remains on the result of improving performance. This makes sure completely that performance campaigns are persistently moving towards better results, which furtherly assists to uplift the brand across all metrics and boosting leads and sales.
Performance Marketing Examples:
One can look up to some of the renowned businesses using performance marketing and can use them as exemplary. Following are the examples of them:
- Avon – Native programmatic video
- Outbrain – Search campaign
- VAVAVOOM – YouTube video campaign
None can defy the fact that performance marketing can grow e-commerce business briskly but one should be using effective tactics for it. To promote the growth of your eCommerce stores, it is highly suggested to hire digital marketers and make most of their vast knowledge. Since they are the ones who can raise the standards of your eCommerce store on social media.
In the recent era, the significance of social media can not be denied so if you have not been lately using performance marketing then it is advisable to commence using them right away and let your business grow all across the world.