When it comes to effective marketing, advertisers want to make sure that they see a return on their investment (ROI). With performance marketing tactics such as social media advertising and pay-per-click programmatic display advertising, it easier to track metrics and measure results.
Performance marketing expert Eyal Gutentag points to five main benefits of performance marketing over traditional marketing:
1. You Can Track Performance
Imagine being able to know exactly how many people visited your website after seeing your advertising. Or determining which of two different messages are more effective in attracting website visitors. That kind of measurable results is what you get with performance marketing. By tracking metrics such as impressions, clicks and conversions, you can make sure you are getting the right ROI.
2. You Only Pay For Results
With traditional advertising such as on the television or radio, you pay for airtime. People will see or hear your ad, but it’s hard to track how many of those convert into actual sales. It’s also hard to target your ideal customer, so you end up paying for messages delivered to many people who will never buy from you.
Programmatic advertising, or online digital ads, can be targeted to just the audience likely to buy your product or service. So you aren’t wasting ad dollars paying for baby food ads to be delivered to senior citizens.
3. You Can Reach New Audiences
With so many formats to choose from – social media, programmatic ads, native advertising, search engine marketing and video – performance marketing can get your brand in front of different audiences. Different platforms can introduce you to a whole new audience. Different platforms can introduce you to a whole new audience and break your echo chamber.
4. You Can Change The Campaign
Digital ads can be changed at any time. For example, if you have two ad messages and one is performing much better than the other, it’s relatively easy to change the messaging during the campaign. If you have ads on multiple platforms, you can see which ones are more effective and change your focus without incurring many costs.
5. Budgeting Is Easy
With performance advertising, you set the amount you plan to spend for the campaign and your ideal cost per action. For example, if you have a goal of 5,000 website visits and you intend to pay $.40 per click, then your budget is $2,000. You only pay once those goals are delivered.
If you are looking to boost your advertising efforts to get results, performance marketing may be the right option for you.