As with any other business function, marketing has hundreds of different technical terms. We’ll be looking at one in particular: performance marketing. In this article, we’ll cover a range of information including:
- A technical definition of performance marketing
- How it works
- The key benefits
You will also look at how M&C Saatchi Performance can help you achieve your performance marketing goals. Read on for more.
What is performance marketing?
Performance Marketing is best known as lower funnel marketing, which is an approach to advertising that creates traceable and data-driven campaign strategies. The aim is to generate as much visibility as possible over ad spend and return on investment (ROI), so senior leaders can see which strategies lead to particular actions.
The trackable nature of this data driven form of marketing differs from more traditional styles of advertising, like printed media, where there’s often no way to tell why some customers have purchased from you and others haven’t.
It is a fully-digital style of marketing, because online tools make it easier to track metrics like engagement, advertisement spend, and more. As a result, it’s an especially effective tool for driving specific goals from customers, like lead generation and conversions.
How does performance marketing work?
The process starts by identifying which goals you’d like to achieve from your advertising campaign. Of course this tends to vary on a client by client basis. You may be looking to net sales, lower your customer acquisition costs, improve your customer retention or any other goal.
Subsequently, we build an advertising strategy that focuses on driving the specific outcomes you want. This can include Pay Per Click (PPC) ads, programmatic tools to automate ad spend, retargeting campaigns, and more.
Once your campaign is live, we start gathering data on how customers are responding to your ads. We do this by tweaking your budget allocation, creative assets and other elements. The aim is to use your campaign budget in the most effective way. We focus on identifying and targeting customers who are most interested in your business based on demographics and engagement levels.
The benefits of performance marketing
This form of marketing is highly targeted and data driven, which means it can offer more confidence versus other marketing tactics. This is because you can see exactly how your budget is being used and what to expect from it. As a result, it can be an attractive approach during a recession since it ensures the power of every penny is maximised.
Similarly, you can use the lessons from past performance marketing campaigns to inform future ones. As performance marketing is all about traceability and KPI measurement, you can make informed decisions about how to allocate your resources and avoid wasteful ad spending and constantly improve your campaign performance.
Finally, performance marketing allows you to build trust and credibility with your customers – especially in today’s turbulent economic environment. You can show your commitment towards your customer’s needs by focusing on providing value and a superior customer experience. In turn, you can improve your chances of repeat business and build long-term customer relationships.
Working with M&C Saatchi Performance
At M&C Saatchi Performance, we’ve spent decades creating high-quality, data-driven marketing strategies for our clients. Over the years, we have acquired a thorough understanding of the performance marketing ecosystem. We have the expertise and the resources to increase your return on ad spends significantly.
Reach out to us to know more about our performance marketing services.