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Performance Marketing – What it is?

Performance marketing is the term given for online marketing campaigns where the marketing companies will be paid by the advertisers based on the results obtained like clicks, and conversions.

Performance marketing is ideal for companies that are looking to reach out to their audience at scale, as the payments are based on how their users are interacting with the content. How does this work? Performance marketing is accounted valuable over traditional approaches as it:

  • Enhances Better Planning
  • Pay for Results
  • Tracks Performance to determine ROI
  • Pivots in Real-Time
  • Discovers New Formats to Expand Reach
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Performance Marketing - How does it work?

Advertisers can put their advertisements on a specified channel and pay depending upon how their Ads are performing. Ways to pay when it comes to performance marketing are:

Cost Per Click (CPC)

Advertisers pay depending upon the number of times their ads are clicked on. CPC is an efficient way to drive more traffic to your website.

Cost Per Impression (CPM)

Impressions are the essential views of Ads and with CPM, you pay for every 1000 views. If about 25000 people view your Ad, you would pay your base rate times 25.

Cost Per Sales (CPS)

In CPS, you would only pay when your Ad has driven out a sale. These are the common methods that are being used in Affiliate Marketing.

Cost Per Leads (CPL)

CPL generates customer leads and drives sales. Similar to CPS, you would have to pay only when someone signs up for an Email, Newsletter, or Webinar.

Cost Per Acquisition (CPA)

Similar to CPS and CPL, CPA is more general where advertisers pay when an action is completed by consumers like driving a sale, sharing their contact, and visiting your blogs.

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Why choose BigDigits for Performance Marketing?

As there are numerous types of performance marketing channels and campaigns available, we follow the steps below to build a performance marketing strategy for any kind of audience. Our strategy for performance marketing includes:

  • Establishing the campaign goal
  • Selecting the right digital channels
  • Creating and launching the campaign
  • Measuring and optimizing the campaign
  • Handling potential pitfalls

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Benefits of performance marketing

The benefits of Performance marketing are:

An effective and a creative way to diversify the audiences

Expanded reachability while capturing the valuable data

Easy to track performance –Goals can be adjusted to get better results

Lower Risks – Reduces the risks with better optimization

ROI-focused – Ensures performance campaigns are moving towards better results and boost leads and sales

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