Marketing space has always been a competitive market where large corporations could charge tens of thousands of dollars for just a couple meters of space or couple seconds of watch time. With the rise of the internet, every webpage that is created is a new opportunity for marketing space.
Do you see where the issue could arise? If companies were to continue charging for the space used it would basically be an infinite money-printing machine. Here comes the new kid on the block – performance marketing.
With performance marketing, markets only pay for results. This could be clicks, impressions, sign-ups, etc. Essentially anything that is measurable data from ads. Generally, you will be charged per click such as with Google ads.
Do I Need Performance Marketing?
Yes, you absolutely do. Performance marketing is quickly becoming the most used marketing medium for a couple of reasons.
First, transparency.
You have no idea what results offline ads are achieving or even if it’s profitable. There’s no way to optimize and improve. With performance marketing, you can see the performance of every part of your ad, the keyword that triggered it, the time, the location, everything.
Second, targetability.
If you put your ad on tv, radio, newspaper or any other analog medium, any old joe will see your ad. You have no choice in who sees your ad or not. Let’s be honest at this point Google probably knows more about you and your buying patterns than you know yourself. Google’s machine learning algorithm is so powerful that it will only take your audiences as a suggestion and figure out who your target audience is itself.
Third, scalability.
When was the last time you could double your ad spend in one click for analog mediums? Probably never. With performance marketing you can lower or raise your budget easier than ever before. For example raising budget around the holidays and dropping it back down right after capturing only the key times with your high budget.
Fourth, optimization.
Possibly the most important reason why you need performance marketing. All the other points are irrelevant as long as this one sinks in. The way to mastery is trial and error. If you want to master anything you just need to show up and do it over and over and over each time seeing what didn’t work last time and changing it. The same applies to your ads, the first time you make them they probably won’t be perfect. You’ll have a high CPC, high CPA and you won’t be happy. Every iteration that changes poor performing parts will slowly improve your results. This just isn’t possible with most analog mediums.
Does your company need a performance marketing strategy? Schedule a consultation below.
