Marketing has changed a lot over the last few years. We left an Era of Offline Marketing and little measurable strategies and entered a more analytical context, of digital transformation and with a focus on interactivity.
And, as expected, Digital Marketing itself and its methodologies, such as Content Marketing and Inbound Marketing, are following the evolutionary path and giving rise to new concepts and applications.
One of the highlighted innovations is Performance Marketing. We are talking about an arm of Digital Marketing, which is focused on results. In this case, all decisions taken are built on analytical intelligence, that is, the interpretation of data.
If you have a business, knowing more about Performance Marketing and understanding this concept and its applications can be decisive. So how about checking out more information on the subject in the topics below?
Good reading!
Table of Contents
WHAT IS PERFORMANCE MARKETING?
Performance Marketing is considered the methodology for applying Digital Marketing strategies, with the data collected in each of the actions developed by the company as the guide for performance analysis.
With this, it is possible to obtain more intelligence about the results and accurately analyze the feasibility, cost and efficiency of investments made in digital media .
By performing a detailed analysis on performance data, Marketing managers are able to identify which paths the company should follow to impact the target audience and which actions can be canceled or changed to become more effective.
It is worth mentioning that performance-focused strategies are very common in paid actions, such as paid posts on social networks and ads on search networks. however, any action (monetized or not) generates data, and it is enough to perform the analysis of this information to obtain the analytical indexes.
AND WHAT DATA ARE USED IN PERFORMANCE MARKETING?
When we talk about data, we are actually talking about metrics. Within Digital Marketing, there are KPIs (Key Performance Indicators), which are the most important indexes to measure the success and viability of a marketing action.
See which are the main metrics involved in the execution of Performance Marketing.
NUMBER OF PRINTS
Impression data tells you how many times the content was shown to the public. This is a separate metric per channel. That is, it is necessary to measure this index on each platform used (Google Ads, Facebook, Instagram , etc.).
But be aware: the number of impressions does not determine how many people viewed the content/ad, but how many times it “appeared on the screen” of people. Therefore, a single user can be responsible for more than one impression.
CLICK THROUGH RATES
The click-through rate provides additional information to the number of impressions. The click-through rate – along with the number of impressions – will provide concrete information about the effectiveness of the campaign with the public.
It’s one thing to appear on millions of screens, it’s another to have millions of clicks. Interactivity is something desirable and very necessary to determine the effectiveness of a marketing action. Therefore, it is essential to analyze the click-through rates, as well as the Cost Per Click (CPC).
Attention to the tip: if the impression rate is at an interesting level for the company, but the clicks are lower than expected, it is worth carrying out the famous A/B test. That is, running a “copy” of the campaign, but with changes (whether in the text, art, CTA, etc.), in order to verify which one performs better.
ENGAGEMENT ANALYSIS
Engagement Index reveals the number of interactions (such as likes, shares, comments, and reactions) to a post.
Engagement gives room to analyze the ability to “cause interaction” of a marketing action. The higher the number, the more impactful and capable of generating results is the campaign.
LEAD GENERATION
Generating leads is the mission of Digital Marketing . We’re talking about potential new customers, everything a company needs to boost its results, right?
An internet user becomes a lead after expressing interest in your company, whether to subscribe to the newsletter, receive a quote or download informative material. The lead index is essential to analyze the effectiveness of communications and their ability to bring financial return to the company.
Tip: It is essential to analyze the cost per lead of actions (CPL) carried out to assess your ability to generate revenue. If the company invested a lot and received few leads to work with, this means that the performance of the adopted strategy needs to be optimized as soon as possible so as not to generate losses.
NEW CLIENTS
The greater the number of new customers (or rather, new sales), the more in tune is the harmony between sales and marketing. This means that the sector responsible for carrying out the actions understood the public well and was successful in the communication strategy and was able to promote sales work with qualified leads.
However, if the cost per acquisition (CPA) is too high, this is an indication that it is necessary to change the way it works to obtain better performance.
HOW TO DO PERFORMANCE MARKETING?
Attention to the points that cannot be missing when planning a campaign focused on performance:
SET A CLEAR GOAL
Be absolutely sure about the goals of a marketing action. It can be done to generate leads, lower CPC, increase click-through rate, and much more. The important thing is to have a very clear objective.
CHOICE OF METRICS
Once the objectives are determined, identify all the metrics that need to be tracked and analyzed .
SELECT DISSEMINATION CHANNELS
Analyze the digital environments where the company is present and which ones are most aligned with its audience. And, based on this definition, choose which platforms will be involved in the marketing action that will be performed.
USE THE BUDGET AS A COMPASS
After defining the channels, metrics and objectives, it’s time to focus on the budget available for the campaign.
Determining the famous budget is essential to make decisions about how much will be invested in each platform and what will be the ceilings for acquiring customers and leads.
MAKE CONSTANT MEASUREMENTS ON THE RESULTS
If your company runs a lot of campaigns every month and needs to be more effective, it won’t do any good to compile the results of the last 30 days and only analyze them after the end of the action.
The ideal is to monitor the results constantly, even while the campaign is on the air. In this way, it is possible to analyze how the action performed over time and find some important data, such as:
- Optimal duration of the campaign;
- When was the engagement peak;
- How long did it take to get properly outcomes.
Remember that Digital Marketing is empirical. So don’t be afraid to make the necessary changes to generate better results.
CONCLUDING
Digital Marketing was created to give companies more analytical bases for their communications and advertising. Acting on the internet generates consistent data for performance analysis, something that was not obtained with traditional advertising, such as billboards and TV advertisements.
Institutions should take advantage of this benefit and focus their efforts and investments on measurable means that can be corrected and improved.
The way to reach more people goes through the internet, and Performance Marketing is a kind of “flashlight” to light this way and make sure that the company and the marketing professionals do not “shoot in the dark”.