In today’s business environment, performance marketing is at the center of the stage, and it’s no coincidence. Companies need clear ways to measure the impact of their actions and justify their spending. Performance marketing offers this solution by helping businesses customize advertising campaigns to maximize their ROI.
In this article, we’ll look at the tools that contribute to the success of performance marketing – from native advertising to content marketing, explain how it works, highlight the benefits, and talk frankly about the challenges.
How does Performance Marketing work?
Performance marketing is a strategy where you pay for results, such as clicks, conversions, and sales, not just ad impressions. It’s like marketing 2.0: instead of just showing ads and hoping users will notice them, performance marketing marketers focus on actions.
This approach allows businesses to be smarter: they can see which ads work and which ones are better to hide. They can also analyze competitors to understand the current market situation. If you’re wondering where to invest your advertising money, performance marketing gives you clues. It all comes down to actions, clicks, and sales.
Performance marketing tools
Wondering what strategies work best in performance marketing? There are five powerful tools that agencies and marketers use to effectively engage customers:
Native advertising
We’re all tired of “in-your-face” ads and most likely skim them. However, when our favorite blogger starts using something and says that it works, or we read useful material on a topic and see a relevant recommendation of a service, we are more likely to believe in the advertisement and buy the recommendation.
This is a type of advertising that matches the format and function of the platform where it is displayed. Instead of standing out, native ads look like regular content on websites, social media, or other platforms, making them less intrusive to users and often attracting more clicks, increasing CTR.
Advertising on social networks
Social media advertising is a goldmine for marketers. It is a great way to connect with users and direct them to your website. The best part is that users can naturally share your advertising content, spreading it in large volumes and to a large audience. While Facebook is a performance marketer’s paradise, platforms like YouTube, LinkedIn, Instagram, and Twitter also open the door to connecting with new customers.
Banner advertising
You’ve probably seen a lot of display ads while scrolling through the web. They appear in the sidebar of your Facebook news feed or at the top or bottom of web pages you visit. Although display ads are no longer as effective due to ad blockers and banner blindness, some companies are still finding success with them. Especially if they are creative – with interactive content, videos, and engaging designs that will make you glue to them.
Search Engine Marketing (SEM)
Since people use search engines to find information online, it is very important to have a well-optimized website for SEM (Search engine marketing). In the world of performance marketing, the main metric is cost per click (CPC), especially for paid advertising. When it comes to natural or “organic” SEM, many performance marketing marketers use content marketing and web pages that are very search engine friendly to achieve better results.
Content marketing
Content marketing costs much less than other types of marketing, but still generates three times more leads. So why aren’t you using it yet? Content marketing is all about sharing useful information with people and making your brand a natural part of their interests. For example, a company that sells cameras can create detailed manuals that help customers understand different types of cameras, their functions, and how to choose the right one for their needs. Content marketing can include blog posts, case studies, and even e-books.
To summarize, performance marketing is a powerful tool that allows businesses to achieve real results, ensuring maximum return on marketing investments. With a clear focus on measurable actions and the use of effective tools, companies can achieve their goals and successfully increase conversions.
