With the rise in e-commerce and digital desperation, channelizing a network of publishers, promoting a cost-per-sale payment model, will prove as cost-advantageous for any brand. Performance marketing has been working huge on digital marketing for a longer time and is taken to be the finest online advertising strategy.
As per insider of business stats 2016 approx 74% of US shoppers mentioned that they stalk more than one non-retail store before buying. And about 16% visit more than four websites, as per the research of Rakuten Marketing and Forrester.
The statistics are very important for the global ecosystems of buyers. So they follow the path to the growth in performance marketing considering new customer grabbing, reach, engagement, and conversion strategies.
So if you are planning to jump into this type of marketing and wish to polish skills in it, then you are at the right place.
What Is Performance Marketing?
Performance marketing, as the name suggests, is marketing based on performance. The performance can be any set of properly executed results, such as leads, bulk sales, booking or the downloading expertise.
An extended meaning, “Performance Marketing” is the merger of paid advertising and brand marketing, bought together. This win-win opportunity for the retailer, affiliates, or the merchants allows campaigns based on performance.
On making the payment to the publisher a merchant feels confident that their hard-earned money is spent well without wastage.
How Is Performance Marketing Different From Affiliate Marketing?
Email marketing, search marketing, and related types are where the partner of marketing exchanges the sales for commission payouts. Affiliate marketing term has originated before this marketing and used in a bigger context today.
Moreover, over the years, it has managed to draw a bigger image of marketing based performance. It involves various social influencers, local advertisers, mobile application developers, paid-up search partners based on location, efficient email marketers, and many others.
On the other hand, this type of marketing is one including classic affiliate marketing termed for driving sales, with the help of cashback options, and coupons. It is, growing over the years.
How Does Performance Marketing Work?
Performance marketing constitutes mainly four groups termed as Retailers or Merchants, Affiliates or Publishers, Affiliate Networks, and the Third-Party capturing platforms with the Affiliate Managers or the OPMs (Affiliate Management Companies).
Each of the groups is critical for performance marketing procedures to work efficiently. And they work in a type of unison, each possessing its essential role which drives the ultimate result.
Thus, the following is an elaborate breakdown of each group:
1. Retailers or merchants
Retailers are the advertisers who are looking to market and promote their products and services with the help of Affiliate Partners or the Publishers. For example, most of the goods related to sports are successful in the context of performance marketing.
2. Affiliates or publishers
This particular group is an efficient performance marketing partner. Affiliates or the publishers come into existence in various website forms such as a coupon, loyalty and cashback, product reviews, blogs, online magazines, and the list goes on.
3. Affiliate networks
Affiliate networks or “third-party tracking platforms” are considered vital to the merchant or the affiliate partnership group. They provide a great one-stop-shop for essential information and devices such as banners, text links, product feeds, promotions.
There are various affiliate networks and tracking platforms of varied strengths and weaknesses, cost structures, and the expertise of merchant vertical. Thus one should consult at the time of researching to an expert like an experienced affiliate manager or the OPM.
4. Affiliate managers
Different affiliate managers, or the affiliate management agencies are OPMs, they are the main driver among the merchant and affiliate.
It is possible that the affiliate managers can be in-house, and the brands may choose with the industries to either control the complete program. Or shall support the in-house team, just because of their expertise and an old network of affiliate partners.
Perks And Benefits Of Adopting Performance Marketing
Amongst the several benefits that convince to add effective performance marketing to cart, enhances the growth of the online marketing mix. In spite of the obvious merits of creating a brand image, by third-party influencers with varying budgets. Moreover, it increases market share for targeted traffic and audience engagement.
With this, one can decrease the risk and enhance the brand's market reach. Performance marketing allows better budgets in the face of growing brand and revenue streams. Moreover, performance marketing is the measurable and transparent form of strategy, to ask for.
Indeed, brands can now easily observe the path of every buyer and find a way, as to where to invest more, thereby helping better results.
What Can Be Done More With Performance Marketing?
1. Have a spotlight on best landing pages
When the question for performance marketing comes, a bad landing page can avert most of the visitors. And the conversion with the worst offer can flip their mind to bounce.
Moreover, if both of these do not work as expected, it will daunt the partners from working with the brand and getting excited about promoting product and brand.
2. Select the traffic sources
One should make sure about the path for traffic as it should always come from the desired path. And locations since it is a key point for performance. The selection of an accurate traffic source will decide the life of the brand.
Try maximum tracking and monitoring
Attribution, mobile/desktop view, and the varied bounce rates, all the factors can give essential data for a good insight. Thus, it is essential to know what is working, and what is not.
Alike testing, tracking, and measuring also make and loose at an equal ratio. It is considered as important to get the maximum out of applied performance marketing campaigns. And for better performance online the product should look as per the clients’ use and need.
And this point shall be a competitive advantage for an e-commerce seller. The images speak the product out. Better the image, Better performance.