If you pay marketing companies or advertising platforms for the result they achieve, you are involved in what we call performance marketing.
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Performance marketing today refers to marketing campaigns that are carried out online, since the reign of internet in our today’s world, how we work, play, study, have fun, socialize, and do business have changed significantly.
Marketing techniques, especially have changed dramatically, performance marketing dominated the digital marketing in this 21st century.
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According to a source online, performance marketing is a digital marketing strategy that is driven by results. ” It is ideal for companies that are looking to reach their audience at scale, because payment is based on how users interact with the content.”
In a performance marketing arrangement, you will only pay marketing service providers when they meet the pre-agreed business objectives, this actually means that you only pay them if they generate business, such as leads, downloads, inquiries or sales, the amout you pay depends on how effective they are.
If you are running google ads, they are going to generate leads that you amout for or you budget for, for instance, Google generated 1,500 leads this month for your business. at $2 per lead after they generate the lead that is when you are going to pay your $3000. though you are going to fund the account, then after they generate your leads then they take the money.
They are many types of performance marketing arrangement, some common ones are cost per click (CPC), cost per 1000 impressions (CPM), cost per lead (CPL)/(CPS) and cost per acquisition (CPA).
Is Affliate Marketing The Same As Performance Marketing?
Affiliate marketing is part of the larger performance marketing umbrella, all affiliate marketing examples are types of performance marketing, but not all examples of performance marketing are types of affilaite marketing.
Advantage of Performance marketing.
The great advantage of performance marketing is that you can measure your return on investment in real time. unlike other forms of marketing or advertising, with performance marketing you do not pay any money upfront. you only pay for successful transactions.
This might sound great but for young companies or startups, there is one important challenge with performance marketing.
Other companies may be reluctant to do business with you because they do not know whether they will make money or not, they are more willing to take that risk with well known products.
Websites have limited space for effective advertising, they want to make the best use of that space, in a cost per click arrangement, they won’t be interested in products that might not generate clicks.
If you pay for each click on a website, there is a risk of being conned, some of the clicks may not come from genuine people, but from bots. in the world of performance marketing, you must make sure that your partners are honest and reliable businesses.
Skills Required to be a performance marketer?
1. Analytical skill performance marketer needs to be comfortable with data analysis.
2. Strategic skills performance marketer must be able to develop and implement effective digital strategic
3. Technical skills performance marketer must be proficient in using a digital marketer tool.
4. Collaborative skills performance marketer must be able to close deals with stakeholders.
Roles And Responsibilities Of A Performance Marketer.
- Build performance strategy
- Execute campaigns
- Media and budget allocation.
- Ensure positve ROI & CAC.
- Optimise and scale
- Track key metrics
- Improve CR and Funnels.
Average Salary of a Performance Marketer?
According to source, for freshers the salary of a performance marketer is around $5k. while for professionals it is around $10k per month and if it is cities like new york, it will be around $15k.
Conclusion.
As we have said earlier on this post, performance marketing is very good at converting existing demand, why? beause it actually works based on intent. so if you are on the internet and i am looking for schools, i will get ads that show me different shoe brands with a click button that says “BUY NOW”.
Performance marketing works when people display some sort of purchase intent.
