Performance marketing is a low-risk option for advertisers with a focus on Return on Investment (ROI). The ease of tracking also makes it a valuable tool for marketers to measure their strategies' success. It also gives them a chance to tweak them to optimize customer response. All forms of digital marketing constantly evolve. They need to take new technology and changing behaviours into account. Performance marketing helps advertisers assess these changing behaviours, helping them change the types of digital ads they buy or display. These easy assessments drive innovation. Let's explore this fantastic digital marketing platform.
Performance marketing relies on the advertiser paying per action instead of paying for ad space. The advertiser determines the action and only pays for the desired outcome. It could be any digitally based action like a click, lead, or sale. Performance marketing relies on targeting the correct audience and using the correct channels.
With other types of advertising, the platform displays your ad regardless of its success. If your ad doesn't perform or earns low-quality ratings, the platform displays it less with this marketing type. They prefer favouring more successful advertisements that generate income. We'll take a closer look at the types of performance marketing and the platforms that offer this ad type.
One of the popular methods of performance marketing is search network advertising. In 2017 Google's ad revenue was $95 billion. Paid search network advertising is a form of programmatic advertising. It relies on keywords to activate the bidding process. The advertiser chooses search keywords and bids on them. Advertisements with popular search keywords cost more as advertisers compete for them. The bidding system is automated, and computers bid for the space in real-time. The search network displays winning bids at the top of the search results, labelled as "ad."
Search network advertising is the best way to target your audience based on their search entries. These networks are the modern equal of the Yellow Pages. Advertising on search networks is the same as having a full-page ad, putting your business above the other results. Search network advertising is effective for any business. Companies providing emergency services benefit most from these ads. Plumbers, locksmiths, and other service industries benefit more from this type of ad. Search network advertising is also an excellent choice for businesses with a small advertising budget or low volumes of natural traffic on their website. It generates leads from customers with an intent to buy.
Instead of long, boring texts in marketing tools, the success of interesting images cannot be denied in attracting the attention of the target audience! Within the scope of performance marketing, the miraculous effect of the image is benefited to make the brand more known and to sell the products and services. Display ads, where creativity is an important factor, are used extensively in digital marketing. Internet users who are browsing through the web pages notice the brand more easily through display ads, and an important step is taken to perform the purchase behaviour.
Social media is another effective method of advertising. Around a quarter of the world's population uses Facebook, especially in first-world countries. Social media ads allow you to target specific demographics and locations, including age, job description, and interests. Social media ads can take any format like images, videos, or stories and slideshows. Payment methods include cost-per-click, cost-per-impression, and cost-per-conversion, meaning you don't spend money on ineffective ads and give the platform incentive to display your ads effectively.
Programmatic advertising refers to the method of purchasing ad space on a platform. It's a fully automated real-time bidding for space process, based on user actions. For example, as soon as somebody enters a search query for an emergency plumber in Toronto, the platform notifies all advertisers with matching keywords. The automated bidding process begins and ends before the search results display. A demand-side platform represents advertisers, and a supply-side platform represents the suppliers. An ad exchange brings the parties together to help the process. Once the bidding is complete, the search engine displays winning ads at the top of the search results.
