Digital marketing is in fact an umbrella term and there are multiple types of digital marketing? One of the lesser-known but extremely crucial forms of every digital marketing strategy is performance marketing. Herein, you need to pay advertisers only when a specific action has been taken by a target customer.
Performance marketing is defined as a form of digital marketing that is entirely driven by results. It is the best solution for companies that aim to reach out to their audience at scale. In such a situation performance marketing is considered ideal as the expenses are based entirely on how users interact online with the brand. Herein you will publish your ad on any of the available performance marketing channels. But you will have to pay based on how well your ad is performing in terms of shares, clicks, sales, or impressions.
Evolution of Performance Marketing
The origins of performance marketing can be traced to the late 90s with the advent of Search Engine Advertising (SEA) and Search Engine Optimization (SEO). Over the years, several new strategies have been introduced that go beyond these two basic concepts and now cover all channels of the digital space. Some of the prominent channels that are now used as a part of the performance strategy are SEO, Affiliate Marketing, SEM, Social Pay per Click, and Programmatic Buying.
In the past few years, Performance marketing has expanded not only to the distribution channels but also to the technological aspects of the thing. Several new opportunities and tools have appeared to help marketers. These include remarketing, behavioral targeting, behavioral preferences, profitability, and several others. Though the importance of incoming traffic analytics has not been eroded at all. In fact, opportunities for performance marketing have exceeded the functionality of Google Analytics.
With the advent of seamless integrations in existing systems, you can now access details related to all performance marketing metrics effortlessly. The priority would be to focus on the needs, interests, and behavior of the target audience. The main focus of performance marketing will always be on identifying a specific target audience with the use of all the available tools.
Marketing Technology News: MarTech Interview with Jennifer Jackson, CMO @ Actian
Top Performance Marketing Trends
The performance marketing space has been evolving at a rapid pace. It becomes vital for you as a marketer to spot the latest trends and leverage them to understand what future trends could be. Here are some of the interest performance marketing trends that you can expect:
1. Rise of Podcasts:
Podcasts have been emerging as a popular platform for marketers across the world. More than 100 million Americans are regularly tuning in to listen to different podcasts. Many of these listeners are spending over 10 hours every week listening to podcasts and are now known as ‘Super Listeners’. These individuals not only pay attention to ads but are also more receptive to ads than standard listeners. If you want to target a new set of audiences for your brand, starting a podcast or being featured in one can be a good way to go. With the exceptional results that podcast advertising is bringing, it surely is one of the best marketing modes of 2024.
2. Direct to Consumer:
Ever since the pandemic hit, most brands made a digital pivot and refocused on D2C sales. The goal here is to eliminate the middleman from the transaction. An increasing number of brands are realizing that shipping products directly to consumers are a much better option that through a middleman. If you are also not satisfied with your distributors, then going the D2C way could be the way ahead for you in 2024. This will allow you more control over your brand and be in direct touch with your customers.
3. Influencer Marketing:
From $1.7 billion in 2016, total spending on influencer marketing in the US has crossed $13 billion by 2021. In fact, more than 68% of US companies with over 100 employees will use influencer marketing as a part of their strategy. In fact, influencer marketing has now entered the realm of B2B marketing as well wherein you can see certain guest speakers promoting the products and services of a brand at events. While influencer marketing is not an instant way to success, it is still a more effective and economic performance marketing strategy.
An increasing number of businesses are now focusing on their performance marketing strategy under the ambit of their digital marketing campaigns.
