Performance marketing is a marketing model where advertising agencies, as well as marketing companies, are paid based on the fulfillment of specific commitments made by them. It includes various aspects such as the number of clicks, page views, leads or sales closures.
It is a mixture of innovation and also the advertisement that helps the businesses to grow in ever-changing ways. Here the campaigns are highly segmented so that one can execute it successfully.
Why Performance Marketing?
– It is measurable and also trackable
– Real-time measurement of ROI
– Highly targeted campaigns
– Pay only for what you get
– Fast optimization
– Fewer risks for advertisers
– Cost-effective approach
– Includes innovation
Performance Marketing Consists of Different Pricing Models Such As:
– Cost Per Click (CPC)
In the CPC model, you charge the advertisers only when the audiences click on the ad.
– Cost Per Mille (CPM)
Here you charge an advertiser based on the number of times the visitors view the ad.
– Cost Per Lead (CPL)
In CPL, the advertiser will only pay for the qualified leads that are generated by the campaign.
– Cost Per Action (CPA)
In the CPA model, the advertiser pays just for a completed activity related to sales such as subscription sign up, credit card transaction in any e-commerce platform, or more.
Performance Marketing is a Five Step Process:
- Firstly, define your target to narrow down your task.
- Next, pick the right affiliate network.
- Share information such as location, the budget with the performance marketing agency to plan your campaign.
- After the completion of the above step, monitor your drive regularly.
- Finally, optimize the campaign to boost ROI and also.