What is performance marketing

Performance marketing is finding and implementing the shortest path to sales growth in your marketing strategy. This direction is marketing focused on achieving a measurable result: growth in the number of customers and profits. Therefore, performance is already enjoying a well-deserved popularity among business owners and marketers.

The task of performance marketing is to work directly on sales without additional costs for hard-to-measure quantities. So, for example, work on the brand image in the long term increases the profitability of the business and the number of customers, but when this will happen and how much income will grow is difficult to say. For performances, income growth is the key goal.

In Internet marketing, performance means the complex use of several tools, each of which complements the others. This allows them to increase their efficiency without increasing the budget.

Distinctive features of performance marketing

Measurability

You track key KPIs that provide a clear understanding of how effectively a particular tool is performing. This allows you to better manage your marketing budget and accelerate your return on investment.

At the same time, performance indicators use metrics that measure the ultimate goal: profitability, payback, the number of leads and purchases, rather than intermediate indicators: ad clicks, number of views, traffic, etc.

Relevance

The benefits of any investment in advertising or promotion are visible here and now. This makes it much easier to test hypotheses, optimize costs, and adjust your marketing strategy.

Focus on results

Any actions in performance are aimed at finding, attracting, and stimulating potential customers to make an order or purchase. Any tools that do not give measurable results are considered ineffective here.

Result pay

When ordering this type of service, you pay not for the work performed, but for the result obtained. So you don’t run the risk of wasting your marketing budget.

Goal setting

Strategy formation work begins with defining goals and choosing KPIs. The main task of performance is to increase the number of orders. To do this At this stage, specialists determine which indicators are most important for the business.

Analytics

After that, a thorough analysis of the business, the client’s company’s Internet resource, and the target audience is carried out. At this stage, it is very important to provide full access to the site analytics systems, the specifics of working with clients, and the current business KPIs. Without full contractor access to this information, it is impossible to provide a pay-for-performance format.

Strategy Development

At this stage, performance marketing specialists determine the main tools for promotion, priority traffic channels, types of advertising campaigns, and their timing. The strategy is formed based on the data obtained in the course of analytics.

Drawing up a media plan

This is a detailed plan for using each marketing tool, taking into account the formed strategy. In the process, a scenario for working with each client channel available to the business is being worked out. Also at this stage, a list of tasks is formed for designers, programmers, and other specialists involved in the promotion.

Performance evaluation and strategy optimization

Every month, experts cut all marketing performance indicators and compare them with similar metrics for the previous period, as well as for the same period in previous years (to consider seasonality). Thus, the effectiveness of the work performed is assessed, after which the specialists adjust the marketing strategy to achieve the best KPIs.