Online marketing, in the present times, is not the easiest of jobs when you consider the growing competition in every arena. Thus, as a brand focused on growth, you need to try every possible avenue to compete and extend your market reach. One of the strategies that brands use in order to ensure this is performance marketing. But what is performance marketing, and how does it help your brand? Let’s read on to find out!
Understanding performance marketing
Performance marketing, as the name suggests, is a form of marketing that depends on performance. Performance refers to a range of executed desired outcomes like a completed sale, lead, download, or booking. It is a win-win opportunity for a merchant or retailer and publisher or affiliate to let both parties to both parties target the campaigns in a high ROI, strategic manner based on performance.
When you pay the publisher or affiliate after a particular action is done, you can feel confident that your money is well spent because you will already be converting the target audience before paying for the transaction. With a brand like Algo Affiliates in action, you can be assured that the targeted action will definitely be completed.
Affiliate marketing and performance marketing: Differences
The term affiliate marketing is used interchangeably with performance marketing. Also, affiliate marketing is something that comes under the broader ‘performance marketing’ umbrella. In other words, it is any form of marketing in which the marketing partner has to complete certain actions or exchange sales for commission payouts.
As such, the term ‘affiliate marketing’ came much before performance marketing. However, at present, it has turned into a term that stands for a larger umbrella of performance marketing apart from loyalty partnerships and traditional coupons to include mobile app developers, native advertisers, social influences, email marketing, and so on.
Affiliate marketing refers to affiliate product and brand marketing. It has become a highly dedicated, innovative performance-based strategy that drives newer customer acquisitions, incremental sales, customer segmental targeting, high ROI campaigns, and market expansion.
Advantages of performance marketing
Including performance marketing to your online marketing and growth strategies has its benefits. Apart from the obvious benefit that it lets you build the brand through third partner entities that have the own audiences and assured techniques, you also get to increase your reach, reduce the risks, and lower the budgets while improving your revenue streams and brand.
Moreover, performance marketing is completely transparent, measurable, and trackable. As a matter of fact, brands get to see the complete click-to-use path of every buyer. They can recognize the areas that need more investment and the partners and channels that offer better results.
As performance marketing needs money only after a desired outcome, the ROI is higher and the risks and the CPA (Cost Per Acquisition) are usually lower. It allows more space in the budget to make other marketing strategies that can be expanded and tested to help you compete and grow. Thus, it is understandable why more brands are turning towards performance marketing.