- Performance marketing is built around the idea to only pay for visible results.
- With performance marketing, you can easily calculate the expenses needed for marketing needs.
- Performance marketing platforms can help you measure every step and tweak your marketing campaign whenever you see fit.
Year by year, digital marketing gets more branchy, generating countless new strategies and approaches aspiring to attract and convert previously unexplored traffic and improve return on investment.
Nevertheless, in an attempt to find a balance between high performance and reasonable expenses for marketing campaigns, more and more vendors are opting for performance marketing. Based on the idea to only pay for visible results, performance marketing proves to be a successful strategy to get the most out of any budget allocated for marketing needs.
Therefore, if you want to build a profitable, cost-effective business, incorporating performance marketing in your overall advertising strategy will be the wisest decision in today's versatile digital space. And here are the top reasons how your business can benefit from performance marketing in 2022.
One key element that distinguishes performance marketing from other marketing types is that an advertiser only pays when the desired action (such as a purchase, subscription, or click) is accomplished. In other words, payment is made only for successful operations.
Instead of spending money to advertise products or services via traditional channels without fully realizing if those ads generate sales or not, performance marketing helps track every click and literally estimate every step, enabling marketers to adapt and react to feedback at each campaign stage.
Moreover, performance marketing measures the campaign's performance in a real-time fashion 24/7 and allows tweaking a strategy any time a marketer sees fit.
In fact, performance marketing from all sides implies less risk than other marketing techniques. Firstly, it concerns money that is spent for results only, protecting an advertiser from any contingencies. Besides, with such an approach, it is easier to plan the proper budget and calculate expenses.
Example: A $1,000 budget will be an appropriate sum if a marketer wants to pay $0.50 per click and has a plan of 2,000 website visits.
Secondly, when it comes to launching a marketing campaign by a small business, performance marketing guarantees to be the most budget-friendly approach if operating on a tight allocation.
Finally, performance marketing is much more flexible and transparent. If a campaign doesn't meet expectations or reaches its cap, it can be easily stopped or paused, and the budget can be moved to other needs.
The most important question every business asks when launching a marketing campaign entails the return on investment (ROI) for the money it spends. In this regard, one of the biggest advantages of performance marketing is the ability to efficiently evaluate and improve ROI. Since you can constantly analyze the campaign insights, it's possible to see if the ad works effectively for the good of your business.
Pro Tip: If you spot poor or no results, extremely low conversion rates, meager revenue, or short on-site sessions, then it is a clear sign to act accordingly and optimize a campaign
Over the last few years, performance marketing has successfully implemented a wide range of intelligent tools like AI, machine learning, big data analytics, and anti-fraud toolset.
On the strategy side, such technologies have the strong potential to help marketers target only relevant viewers, refine costs, and automate a bunch of manual workflows.
It's interesting! It is expected that AI implementation (that so far only augments human decisions) may soon exclude human supervision at all, allowing to significantly reduce expenses on numerous unnecessary managers and free up time to focus on other important business aspects.
A rich toolset
Like any other marketing type, performance marketing is also exposed to several flaws that dishonest individuals may exploit in pursuit of easy gain. Luckily, you can find a vast array of performance marketing tools on the market that will efficiently combat all the downsides mentioned above.
Pro Tip: Fraudulent traffic, botnet traffic, motivated traffic, inefficient performance analysis, and overflow of manual work may all become huge blocks to successfully growing and scaling a business if using performance marketing.
Moreover, apart from the basic functionality that is typically used to track and analyze a campaign's key parameters – clicks, impressions, conversions, etc. – more and more apps and platforms aspire to provide an extended set of features to embrace all possible marketing needs. That's why if you're going to run a successful performance marketing campaign, deciding what software to utilize will make a big difference.
How to get the most out of performance marketing
In fact, if using performance marketing as one of the ways to promote your business, choosing what platform to trust to get the most out of your marketing campaigns is a pivotal point in the entire strategy. For example, we at UCLIQ have designed our platform to solve many problems. Due to our built-in analytics and user-friendly dashboards, you can clearly see how all your performance marketing campaigns are functioning.
Additionally, thanks to our platform's skills in tracking and attribution, you can measure almost every action and understand what is working and what is not. The key features we provide will help you mitigate numerous marketing issues and markedly improve KPI and the bottom-line profit.
Pro Tip: By trusting UCLIQ platform you will be able to:
- Research, analyze, and model your monetizations funnels
- Improve your traffic flows to increase conversion
- Apply Fraud Monitoring and Prevention Suite to filter out all fraudulent sources
Finally, when using our software, you will be able to weed out fraudulent sources, analyze what works better, and optimize traffic to reach a phenomenal conversion rate. As a result, you will significantly improve your operational efficiency, reduce labor costs, and increase ROI.
In 2022, performance marketing can undeniably benefit almost every business.
Those marketers who strive to level-up advertising actions and stimulate business outcomes should not neglect performance marketing and all instruments it has in its inventory. Performance marketing may give advertisers an excellent opportunity to plan wisely, pay only for successful actions, check performance, instantly respond to any changes, and drive only relevant traffic.
In this way, if you are a business looking for the best way to reasonably use a budget to launch a successful marketing campaign, performance marketing will definitely be the best option to turn to.