In the era of rapidly developing digital marketing, understanding performance marketing is very important to run a business campaign effectively. This approach allows us to focus on very specific targets in order to achieve the achievements we really want. In practice, payment for advertising only occurs when certain actions, such as sales, getting new leads , subscribers , and so on. In this article, Bang Jeje will discuss what performance marketing is and the strategy of performance marketing, as well as the benefits that can be obtained through this approach.
What is Performance Marketing?
Performance marketing is a digital marketing strategy that involves paying a company or platform to achieve a specific target result. The result could be a sale, new lead generation, or other pre-determined business objective. This approach focuses heavily on achieving very specific goals, and allows us to evaluate metrics clearly. For example, we can see the amount of traffic, conversion rates, and expected actions from users.
Unlike conventional marketing, where the approach focuses more on analyzing user behavior while connecting it to the return on investment (ROI) of the campaign that has been carried out. Performance marketing includes various channels such as affiliate marketing, online advertising, sponsored content, social media advertising, and search engine marketing (SEM).
Performance Marketing: Paid But Efficient
what is performance marketing
The question may arise, “Will all this cost you?” Yes, it does. However, this is not something to worry about because advertisers croatia phone number library only have to pay when the business goal has been achieved. For example, payment only occurs when a sale occurs or a user takes a specific action that has been previously targeted. With this method, the costs incurred are certainly much more economical compared to conventional advertising, where payment is made before the results are achieved.
Benefits of Performance Marketing
One of the main benefits of performance buy bulk sms service library marketing is its ability to accurately calculate ROI. Every action taken by a user, such as clicking on an ad, signing up, or performing other actions, indicates that the campaign or business objectives have been met. Based on this data, we can also understand the strategies that have been carried out and make the right decisions to maximize business value in the next campaign.
In addition, performance marketing offers a “pay as you go” payment system, where we only pay when we get real results. With this approach, expenses will not be wasted.
How Performance Marketing Works
Performance marketing is a strategy that au emai list can be applied across various platforms, from social media sites like Facebook, TikTok, Instagram, to search engines like Google. These platforms will usually determine the most appropriate type of ad to show to users based on their preferences, including target market, geographic location, relevant offers, and conversion rates.
In practice, there are four parties that work together to optimize performance marketing . They are retailers (business actors who want to market their products through affiliate partners or publishers), affiliates (parties who promote products from retailers, such as influencers and bloggers), affiliate networks (platforms that connect retailers with affiliates, for example TikTok Shop, Amazon Associates, and CJ Affiliate), and affiliate managers (people who usually work in agencies to facilitate the needs of retailers and affiliates).
Performance Marketing Strategy
After understanding how it works and its benefits, we can learn various performance marketing strategies that can be chosen according to the company or business campaign goals. The strategy chosen will depend greatly on the goals to be achieved.
Cost per Mille (CPM)
Cost per Mille or also known as Cost per Impression (CPI) is a strategy where advertisers pay a certain amount of money every time their ad is displayed a thousand times. It is important to remember that CPM refers to the number of ad views, not the number of clicks. This strategy is very effective for campaigns that aim to build brand awareness.
Cost per Click (CPC)
Cost per Click is a strategy where advertisers pay for advertising every time someone clicks on their ad. The cost will depend on the number of clicks received by the ad. CPC is closely related to Pay per Click (PPC), but CPC is a metric for measuring costs, while PPC is a payment model.
Cost per Lead (CPL)
The next strategy is Cost per Leads or CPL. This strategy is used to measure the costs that must be incurred when successfully getting new leads or prospects. For example, users create an account or fill out a form directly from the ad. The more complete the information provided by the prospect, the higher the cost.
Cost per Acquisition (CPA)
Cost per Acquisition is the most common strategy used in performance marketing. CPA is used to measure the cost of advertising per desired action, such as a purchase, subscription, or other targeted action.
Conclusion
From the explanation above, we can conclude that performance marketing is a data-based marketing approach that is very effective in achieving business goals. With this strategy, we can accurately analyze campaign results, optimize costs, and achieve business goals in a structured manner.
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