What is Performance Marketing and Why It Matters
One of the game changers in the digital marketing landscape is performance marketing.
There are many ways to market your business on the digital today.
The field is constantly changing and progressing to make it easier and precise for advertisers to market their products and services.
What is Performance Marketing?
Performance marketing is by definition, marketing based on the performance or results that you receive for your business.
If you own a dive center, then the output is the number of divers that enroll in your courses or divers that book diving trips through your website.
Essentially, performance can be in the form of completed sales, leads, conversions or anything in between that is the result of your marketing campaign.
There are myriad of parameters and data that you can designate as the output performance of your campaign.
Performance marketing has impacted the way we measure the success of marketing campaigns.
This data-driven approach to marketing provides valuable insight into what works and what doesn’t, allowing advertisers to optimize their campaigns to maximize the output according to their respective targets.
In essence, performance marketing is when advertisers pay when a specific action, such as when a customer books a room at your hotel.
The primary benefit of performance marketing is the measurable data that is gathered regarding the Return of Investment (ROI), as well as the many different ways of tracking that performance.
Another benefit is a low risk that is involved because you are only paying whenever a specific action is performed.
However, the fundamental benefit of it is that it is 100% quantifiable and measurable.
If anything, the data that you gather from the campaign itself is a tangible resource from which you can conduct analysis and evaluate on how to strategize your business better.
To summarize, performance marketing provides a low-risk, measurable method for business owners or advertisers to create marketing campaigns that are driven by specific targets or performance.
As we outlined above, this performance-oriented approach allows you to quickly evolve your strategy and tailor it specifically for your growing business.