Performance marketing - what is it?

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1. What is performance marketing?
Performance marketing, also known as efficiency marketing, is a form of online marketing whose cost depends on the achieved results of the campaign. This means that we do not pay for our ads being displayed (which we know very well, for example from outdoor advertising, where we have to pay a fee for, for example, renting a billboard or printing leaflets). In performance marketing, we pay for the implementation of a specific campaign goal, such as registration, purchase of a product or service or signing up for a newsletter.

Compared to traditional forms of advertising, performance marketing allows us to have better control over the campaign budget and significantly facilitates accurate measurement of its effectiveness. Performance marketing will be particularly attractive to small and medium-sized enterprises that do not have a large advertising budget, but still want to effectively reach their customers .

Performance Marketing
1.1 Advantages of performance marketing
Performance marketing, as the name suggests, is based on effects , or achieving specific goals. They depend mainly on the specifics of the business and industry, but there are also a number of general ones that remain unchanged regardless of the type of activity. Below we present a few of them.

1. Reducing unnecessary expenses
Performance marketing allows you to reduce the costs of advertising campaigns to a minimum, by having to pay only for specific actions performed by users. Thanks to this solution, we do not have to pay for the exposure of our ad itself. What's more, if it is properly optimized and adjusted to the intended target group, it may turn out that we will minimize the problem of burning through the budget to almost zero - communication will only reach people who are really interested in the given products or services!

2. Accurately measure performance
Because the effectiveness of a given campaign is measured solely by the number of interactions it was supposed to trigger, we can easily determine how many people it reached. The conversion percentage is the basic indicator for us here of whether it was successful or whether it needs to be better optimized.

3. Effective audience targeting
Performance marketing allows us to precisely define the target group of our campaign and reach it, moreover, thanks to commonly available tools such as Google Analytics, we can easily control and analyze the characteristics of the target group on an ongoing basis. When we precisely define our niche and design our communication accurately, we will reach potential customers directly!

4. Maximize your return on investment
The fact that we pay only for specific actions taken by recipients also goes hand in hand with the fact that thanks to this we minimize costs and maximize profits by defining profitable goals for us, which must be achieved for the brazil telemarketing data campaign to convert. It is worth precisely defining your target group, including their expectations, goals and the problems they face, because combining this with ads based on performance marketing, as we mentioned earlier, can translate into an almost complete reduction in budget burn.

1.2 Popular performance campaign goals
The foundation of a well-constructed marketing campaign in the spirit of performance marketing is, above all, the appropriate definition of the campaign goals that we want to achieve. As we already know, it is for their implementation that we will pay, so it is worth considering them carefully and choosing those that will be worth their price.

Campaigns
The most common goals in performance campaigns include:

making a purchase in our online store
User registration
newsletter subscription
lead acquisition
Filling out the form
The selection of goals also has a key impact on the subsequent form of settlement for the campaign, as there are several models we use for this purpose:

CPC (Cost Per Click) - this is one of the most popular payment models. With this solution, the fee for the ad is charged only when the user clicks on it. As mentioned earlier, the fee is not charged for the display of the ad itself. CPC allows for easy measurement of the effectiveness of the campaign and works perfectly in sales campaigns and those aimed at attracting traffic to the website.

CPL (Cost Per Lead) - in this payment model, the advertiser bears the costs associated with acquiring leads. This means that we pay, for example, for obtaining the user's contact details or for the user to perform specific actions, such as signing up for a newsletter or downloading an e-book or application.

CPO (Cost Per Order) - this model defines the method of settlement, which involves the necessity to pay for each order that the user places in our online store, which was fulfilled thanks to the displayed advertising.

CPS (Cost Per Sale) - in this model, the so-called sales commission is used, mainly within the framework of affiliate cooperation. This means that the publisher of the advertisement receives a commission for each sale that occurred within his recommendation of the said product.

CPA (Cost Per Action) - means the cost associated with a specific conversion on our website that we have to bear.

It is also possible to adapt a hybrid model that will combine two of the above solutions.

1.3 Performance Marketing Campaigns - Available Formats
Performance marketing, in addition to carefully defining goals, also requires choosing the format in which it will be implemented. Some of the most popular formats include:

Affiliate programs
Using affiliate programs brings numerous benefits to both advertisers and ad publishers. One of the main advantages of affiliate networks is the ability to conduct payments on a CPS model or a combination of a CPC and CPS model, thanks to which the advertiser pays only for those actions that contributed to the sale of products or services.