You must have read about the trend of performance marketing and its growing demand. But the question that arises here is “Why performance marketing is amidst all the trends? Why brands are after it? What is so unique and effective about this trend?”
You can find different answers to these questions, but might not be able to get an actual overview of why you need a performance marketing campaign for your brand. But in this blog, we will cover this trend in detail. Also, will try to make it clear “Why Performance Marketing is the Need of the Hour?”
However, before focusing on performance marketing, you must know why it is overpowering digital marketing.
Digital Marketing v/s Performance Marketing
Digital Marketing is a form of marketing in which the digital marketer has the only aim of positioning your products online and driving sales. Hence following the approach, the marketers just aim to make use of every possible tool available online to boost the brand presence. Such includes a mix of tools that can help achieve goals in the shortest possible period.
On the other hand, performance marketing follows a much different approach. Performance Marketing involves a mix of tools and approaches that aim towards both short-term and long-term brand positioning. The use of social media and other digital tools can help to ensure better placement/positioning of the brand. On the other hand, SEO and website optimization play an important role in long-term brand positioning on online platforms.
Apart from such, there exist several other approaches that differentiate performance marketing from digital marketing. You can understand such factors while we discuss the key reasons why performance marketing is in trend.
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Better Control of Campaigns:
In Performance marketing, marketers make use of differential tools and approaches to evaluate the ROI of campaigns. Hence, it provides you more power to control your spending on campaigns and the results/profit from the campaigns. Specific tools are being used by marketers including Google Analytics as well as other performance measuring tools.
Not only the measurement of campaign performance but also the marketers make use of tools while preparing and executing campaigns. Hence, such helps the brand and the marketer to have better control/hold of their campaigns. Some of the common tests that performance marketers conduct before rolling out a campaign include:
- A/B Testing
- Usability Testing
- Multivariate Testing
- User Testing
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Reduced Risks Associated with Digital Marketing Campaigns:
Performance Marketing helps to eliminate the digital/online risks associated with digital marketing campaigns. Such risks include the focus on a vague audience base, non-optimized content plans, and unpredictable marketing results. Overcoming these risks has also been a key factor in promoting the focus towards performance marketing.
An experienced performance marketer ensures that before creating and implementing a campaign a detailed industry audit is conducted. It helps to understand the market needs and the existing gap in the brand’s marketing strategy. Hence, based on such further planning can be done. Hence, it ensures providing a more detailed approach towards brand growth.
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More Specific:
As discussed, the performance marketers conduct a detailed brand audit before proceeding with the campaign. Hence, they are well aware of your target audience, your competitors, industry practices and their aims/objectives. As a result of such research, the campaigns being developed are more brand and audience-specific.
Also, the advertisers can target a more specific audience base and can further measure the performance of campaigns. If found to be ineffective, relevant changes can be introduced to align the campaign with the audience or the market interest. Further based on the performance of past campaigns the advertisers make relevant moves in future campaigns.
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A better mix of Digital tools:
One of the key reasons why performance marketing is the highlight of the industry is its approach towards a balanced mix of digital tools. The performance marketer considers the brand’s specific goals for marketing and accordingly plans on the use of marketing tools. For instance, if a brand is looking for a short-term increase in sales, it can rely on social media and digital ads.
On the other hand, if the brand is looking for long-term brand awareness and association, it can leverage the capabilities of SEO and website optimization. Apart from these, there are several other marketing tools and ad formats that are used in a performance marketing campaign.
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Reaches and Converts the audience:
Digital Marketing emerged with the introduction of the internet and social media platforms. The brands used to post about their products and offers on the platform. Such posting is used to attract audience attention and then would help in generating leads. However, the major issue with digital marketing was that the quality and amount of leads generated from different platforms were not easy to evaluate.
This is where the performance marketing has an edge. The performance marketer can get detailed data on the campaigns executed and based on such data its reach can be defined. Hence, based on such reach data, the performance marketers plan on creative means to convert the audience in the online market space.
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Accountable Brand Performance:
Performance Marketing as the name reflects is based on the performance of the campaign. Hence, the advertiser charges the client depending on the campaign’s results. However, this is not the case with digital marketing formats. In digital marketing, the advertiser charges the client as per their set fees. Hence, it makes it difficult for the client/brand to get the expected returns out of their marketing budget.
Opting for performance marketing helps the brand/client get real-time data and results regarding the campaign performance. Hence, the brand/client holds the power to stop the campaign if it is not generating potential results. So the performance marketer remains accountable for your campaign’s results.
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Aligned with Market Trends:
A key reason why performance marketing is the most discussed trend is because of its active focus towards market trends. Performance marketers keep an eye on market trends whether it is related to social media or the use of any new channel/approach. Such helps to target the audience’s attention and also boosts the brand’s engagement in the marketplace.
The above factors can be identified to be the key reason why the clients and the marketers are aiming for Performance Marketing Campaigns. Apart from the discussed factors, it is also important to consider the emerging trends in Performance Marketing.
Emerging Trends in Performance Marketing
Such trends are further pushing and enhancing the performance of marketing campaigns and making it the choice of brands in their digital growth journey.
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Increasing Personalization:
Performance marketers are aiming highly towards audience-specific needs and interests. Marketers can make use of tools to extract data and know about their audience preferences. Hence, based on such data, performance marketers are aiming to personalize the user experience through creative and engaging ad formats.
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Interactive Ads:
A unique trend that performance marketers are relying on is the use of interactive video ads for product promotion. An interactive ad is backed by relevant links and allows the user to execute the action while being on the ad rather than redirecting them to a secondary website. However, only experienced performance marketing agencies can provide their client with such ad formats.
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Ethical Ad Formats:
The approach to lure customers by misstating facts and information has almost vanished with performance marketing. But along with such the brands are moving towards ethical marketing practices. Brands and marketers are being more open and transparent to their clients and working on relationship-building to acquire and retain audiences in the digital and transforming market.
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Voice Search Marketing:
A new channel or type that performance marketers are aiming towards is optimizing content for voice search. As with the increasing demand for smart speakers, voice search traffic is also increasing. Hence, to stand out from the competitors, it is important to work on such transforming approaches in the industry. Based on such it can be identified that voice search is also an emerging trend being focused on by marketers.
Wrapping Up
The discussion on performance marketing is never-ending. There are several elements associated with the planning and execution of a performance marketing campaign. Also, with time these elements keep on transforming. Hence, if you are looking for performance marketing services for your brand, you must connect with the expert.
Verve Online Marketing is a leading digital marketing agency, that provides clients with customised performance marketing services. We have a team of experienced performance marketers who have worked with brands across the global market and are serving them with 100% satisfaction. So what are you waiting for? Book your consultation slot today with our marketers and drive ahead of your competitors.
