What is performance marketing?

September 04, 2018
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Online Performance Marketing is an online marketing model in which the advertiser pays only for the results achieved.” The definition given by the performance Marketing Association, an organization to which they belong companies like Google, Yahoo !, Dell, eBay or Amazon makes it clear that this practice of marketing is aimed at generating a user response resulting in a subscription, registration, forwarding a like or sale, for example.

Thus, the company’s marketing performance is only paid if it achieves the objectives agreed in the existing digital channels.

With the performance, marketing is passed from pay per click or per impressions to pay for results and what determines whether a campaign is effective are not statistical calculations but real data collected by the tracking system that stores clicks, conversions, sales or subscriptions on real time.

Key marketing performance

In performance marketing campaigns, also known as performance marketing, it is essential to understand that, regardless of the channel in which you are working, the advertiser pays only for results. Therefore, the key is to achieve these results.

For a performance marketing strategy to take effect you must take care of the following aspects:

  • It poses a clear and measurable objective. It makes no sense to use marketing results for brand awareness objectives, for example. In addition, it is essential to be clarified from the outset the indicators that will be used as reference. By relying on them paying these KPIs should agree with the agency that will manage the campaign.
  • Define the payment model. Since you can use very different channels and that everything will depend on the conversion, it is necessary to clearly define the payment model to be followed: CPM, CPC, CPL, CPA, … The most logical thing is that in a marketing campaign performance working with the following models:
    • CPL(Cost per Lead).
    • CPA(Cost per Action or Cost per Acquisition).
    • CPC. It is not usual, but may occur some concrete actions to measure marketing results.
  • Creates optimized landing pages. The closure of the entire conversion process is usually found on a landing pages. So useless to create the best Adwords campaign or build a perfect automated email campaign-marketing if, in the end, traffic comes to a wrong landing page. Take the time necessary to build the necessary landing pages. In addition, worry that Your landing pages are optimized for viewing on any device. Both desktop and mobile.
  • It has specialists to take advantage of technology. Clearly, the performance marketing requires advanced use of digital tools that help in achieving the objectives. However, it is also essential to have specialists who know how to get the most out of these technologies. For example, in Antevenio Go! Each customer has a team consisting of a conversion designer, an expert in social and Adwords Ads and landing conversion manager. They are responsible for managing your real-time campaigns capture leads.
  • The essential role of monitoring. Performance marketing strategies should be analyzed in real time. If something does not work, you should change it as soon as possible. Only in this way you will get the rewards you want. Periodic optimization of marketing campaigns results is the basis of its success.
  • There must be a fluid relationship between agency and advertiser. They both work for the same goals so transparent communication can be the key to success.

Barriers to adopt marketing results

As in all cases, not all benefits. In the study by Cake Marketing in 2013 and some of the problems that would find the performance marketing peeked. As seen in the image above, respondents identified the 7 reasons to resist adopting this marketing discipline. Is about:

  1. A return of investment uncertain (49%).
  2. Not having budget (31%).
  3. Bureaucracy (31%).
  4. High cost (23%).
  5. Limited knowledge of technology platforms (22%).
  6. Security risks in the data (21%).
  7. Lack of skills and resources (19%).

The advantages of marketing performance

However, in the same study of Cake Marketing 5 Reasons were shown why it was interesting to start developing performance marketing actions:

  1. This is the segment of the fastest growing digital advertising.
  2. According to one study, for every dollar invested in marketing performance a return of $ 11 is achieved.
  3. 93% of companies that use recommend.
  4. New opportunities to earn revenue with mobile strategies, lead generation and PPA (Pay Per Action) are generated.
  5. Its effectiveness will increase with the addition of Business Intelligence technologies that will know better how to extend the ROI.

In addition, beyond that there are certain drawbacks such as the fact that the company providing the service assumes the entire risk as regards the economic level; the performance marketing offers the following benefits:

  1. Performance marketing campaigns to offer direct online actions with what is instantaneous conversion efficiency.
  2. The advertiser previously and accurately know the unit cost of each action that is at stake: subscription, qualified visit, sale or registration.
  3. You can use online media varied: email marketing, advertising on social networks, display.
  4. It allows greater control over results.

Progressive adoption

Everything indicates that 2016 is the year of the emergence of marketing performance. Much of the blame lies in the adoption of mobile technologies. However, there is still no conclusive data.

In one of the latest studies on marketing performance in January 2016 “The New Normal: Performance Drives Advertising Effectiveness “Forrester Consulting interviewed more than 150 responsible for marketing in the United States, Britain, France and Germany. The main results were:

  • Marketing performance is the new normal. Almost half of those surveyed already conduct-retargeting actions and more than half are focused towards advertising.
  • Better ROI is driving the adoption of marketing performance.
  • Marketers that do not adopt the customization capabilities are in danger of being left behind and stay out of the market.
  • The performance marketing is a competitive difference today. However, in the future it will be the axis on which it is run. Users are increasingly demanding that brands offer them relevant messages in appropriate contexts.

Decaloge for marketing performance

Last year, the agency published the Decalogue Conversion in which the basic factors are shown to implement an adequate marketing strategy performance. Among them they were cited:

  1. Performance integrate into the overall strategy of the company: Marketing results should be integrated into other marketing strategies of the company. No separate can to meet the needs of your company.
  2. Identify KPI’s: It is a basic activity: meet the indicators that help measure the actions you execute. The only way you can optimize your campaigns.
  3. Discover the path to conversion: Conversion is the ultimate goal of any marketing strategy performance. Identify ways to achieve improve the effectiveness of your marketing activities performance.
  4. Groups and measures: Today it is already possible to generate millions of data and exploit them conscientiously. The challenge arises as process and analyze these massive amounts of data available, both structured and unstructured, to give them meaning, to transform them into useful insights.
  5. Technology & CRM If you cross all your online marketing campaigns with your own CRM you get more control over the operation of the advertising campaigns. And you can make planning more focused on users later campaigns. Personalization campaigns through the integration of results with CRM offers fully aimed at performance results, improving conversion rates, regardless of the target (records, sales, reservations) that focuses each creative to historical user behavior.
  6. Attribution models: Attribution models are a set of rules that assign the most representative way possible the carrying amount of sales to each of the points of contact with the user interacts on the way to conversion.
  7. Omnichannel Strategy The appearance of more and more channels in both the online and offline environment through which the consumer can interact with your brand, requires creating a strategy focused on omnichaneling. A user has the ability to interact with your brand in different contexts, moments and devices. And it’s your job to know that this is the same person.
  8. Constant innovation It is important to be in constant innovation and make proper management of data management. To do this, you can already have specialized supports and tools that allow the user impact indicated through personalized messages at the time when it is appropriate.
  9. Creativity and content: Content is the starting point. Creative content strategy must be well managed and be balanced. However, it is important to understand that the life cycle of the content has changed: before dying when publishing content. Today, the cycle begins once it is published.
  10. Competition analyzes: Much of the success of a marketing campaign based on performance comes from continuous competitive analysis. Both know well what or how or where they are acting your competitors is paramount when making decisions.

Antevenio Go !, our commitment to Strategic Performance Marketing

Antevenio It has expanded its service offerings with the launch of Antevenio Go!, A new business unit, led by Rubén Calvo, oriented marketing results for what has an innovative proprietary technology to capture leads and a methodology that relies on 17 years of experience group.

Antevenio Go!It offers a comprehensive solution that brings together services already offered by the company through its other businesses –email marketingsocial adssearch engine marketing and digital display advertising– under one umbrella. In this way, customers have access to a continuous improvement system conversion landing pages with its own benefit.


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