What Is Performance Marketing?
Performance marketing is the term given for online marketing campaigns where advertisers pay marketing companies or advertising platforms for results achieved, such as clicks or conversions.
Unlike traditional and organic marketing, performance marketing is specifically used to drive actions, track and measure those actions, all while attributing the ROI of each asset, campaign or activity.
Benefits of Performance Marketing
With the future of digital marketing looking more promising each year, using performance marketing channels can help you scale your advertising efforts to meet the needs of your company without breaking the bank.
Performance marketing is a creative and effective way to diversify your audience and expand your reach, all while capturing valuable data. And the benefits don't stop there. When you embrace the full functionality of performance marketing, from native and affiliate advertising to sponsored social media content, you'll find it's easier than ever to grow your business.
Top Performance Marketing Channels
What channels work best when it comes to performance marketing? There are five types of performance marketing that agencies and advertisers use to drive traffic:
- Banner (Display) Ads - These ads appear on the side of your Facebook newsfeed, or at the top or bottom of that news web page you just visited. Though one of the most common and used Ad types, many companies are still finding success with display ads that utilise interactive content, videos, and engaging graphic design.
- Native Advertising - Native advertising takes advantage of the natural appearance of a web page or site to promote sponsored content. Native advertising works because it allows your sponsored content to live seamlessly beside other kinds of organic content.
- Content Marketing - Content marketing is all about educating your audience. The focus is on providing useful information to users and putting your brand in context. Content marketing is a channel that can include blog posts, case studies, e-books, and more.
- Social Media - Social media not only offers the opportunity to reach users and drive them to your site but also share your sponsored content organically.
Using Customer Segmentation Models
You can use various customer segmentation models, depending on your business needs and marketing goals. Here are the most common models for customer segmentation for performance marketing:
- Demographic Segmentation Model - This means dividing people into groups based on certain demographic factors, including age, income, marital status, and occupation.
- Geographic Segmentation Model - With geographic segmentation, you categorise your audience based on where they work, live, and shop.
- Psychographic Segmentation - This type of segmentation is about forming groups based on common traits such as hobbies, lifestyle choices, personality traits, cultural beliefs, and values.
- Technographic Segmentation - Technographic segmentation means categorising people depending on the devices, hardware, and software they use.
- Behavioural Segmentation - Behavioural segmentation means grouping people together based on their behaviour patterns. These patterns reveal how consumers feel about your business so you can determine how to successfully reach them at every stage of the buyer's journey.
ROI Is The Centre Of Performance Marketing
Performance marketing campaigns give you the ability to measure everything from brand awareness to conversion rate down to a single ad. If you're trying to upgrade your performance marketing, then customer segmentation is your friend. By segmenting your audience, you can learn what matters to your customers, run targeted, more effective campaigns, and ultimately convert more leads into customers over time.
So jump into performance marketing today with Non-Stop Digital and begin reaping the benefits of tracking, measurement, and optimization for your ROI. Contact us today!