Until recently, the ability to accurately determine what interested the user, how long he looked at a particular product, what keyword in the advert he used to go to the site and place an order seemed like something from the realm of fantasy. Today, it is our reality.
Despite the many different technologies that allow us to accurately determine whether an advertising channel will work or not and what the return will be, many continue to distribute budgets based on the principle of “let’s see what the payoff will be.” Moreover, the result is assessed for each tool separately. From SEO, they expect stable traffic to the site and an increase in positions in the search results, from context – “fast” traffic, from social networks – a loyal audience.
But how do these advertising channels italyl whatsapp data influence each other? And how does the result of marketing activities affect the ultimate goal of the business – sales and profit? Performance marketing helps to answer these questions.
What is performance marketing
This is an internet marketing concept that aims to achieve specific, measurable business results (KPI) in the shortest possible time. Simply put, when you start spending your budget rationally and counting everything.
Let’s take, for example, a company engaged in suburban real estate. Over 7 years on the market, it has successfully built 69 cottage what brand journalism is and how companies are using this strategy villages, sold about 10,000 plots, with a sales conversion rate of 14%. Everything seems fine, there are clients, but the managers wanted to increase the conversion rate to 20%, and for the cost of an application to be no more than 2,000 rubles. To solve this problem, they turned to strategists and analysts.
— Comrades, why do you spend so much money on contextual advertising? It produces less return than profit. And the forms on your site are inconvenient, there are too many fields to fill out, the functionality for searching for sites is confusing… You should connect a comprehensive strategy.
And so they did. Within a month, things were looking up:
This is an illustration of the very performance marketing that allows you to accurately determine the effectiveness of each advertising channel, identify the main problems, draw conclusions based on this and make the right decisions.
Stages of developing a performance promotion strategy
The promotion strategy in performance marketing is built according to a specific plan – it is necessary to select channels that can work towards philippines numbers a single result, and determine the effectiveness metrics for each of them. What is it and How does it Work?
- Analytics. Specialists conduct a deep audit of the site, analysis of the niche, competitors, and market. They also evaluate the information background of the brand, marketing activities, current campaigns, tools, and their effectiveness.
- Formulation of goals. The goal of performance marketing is sales, but specific promotion tasks depend on the business and the problems identified at the previous stage. It is important to set clear measurable goals: increase repeat purchases by 20%, attract 70 new customers, increase the number of orders by 56%, and so on. It is also necessary to set a deadline for achieving the goals: by the end of the month, quarter, year.
- Selection of channels. Based on the analysis of the effectiveness of previous campaigns, the most promising channels, tools and activities are selected.
- Strategy. At this stage, the use of promotion channels is described and recorded in detail: budget, evaluation metrics, period, advertising platforms, planned results.
- Analysis and adjustments. After the strategy is implemented, specialists evaluate the effectiveness of each channel separately and the overall work to achieve KPI. Some campaigns are optimized, some are disabled due to lack of results. The more information about the usefulness of the tools can be obtained, the more accurately the strategy will work.
How Performance Marketing Works
To stop wasting money and get the most out of every advertising channel you use, it’s important to consider the key components of performance marketing: What is it and How does it Work?
- deep data analytics;
- setting goals correctly;
- comprehensive strategy;
- advertising channel management.