10 reasons why your business should use performance marketing
True to the motto:
“You pay what you get.”
performance marketing has developed in recent years as a valuable tool for cost-efficient marketing. Instead of fighting their way through opaque payment models, more and more companies are taking advantage of the KPIs linked marketing strategy to achieve measurable success.
But why are more and more companies using performance marketing and are turning away from conventional marketing strategies?
We hold up the flag and name
10 reasons
for it!
Table of contents
What is performance marketing?
In the digital age, there are more advertising opportunities for businesses than ever before. It can be difficult to decide which media channels are right and how much money should be invested in each. Most advertising campaigns have a clear objective, such as increasing website traffic, generating leads, or increasing sales.
This is where performance marketing comes in:
In contrast to traditional marketing, advertisers in performance marketing only pay for defined KPIs that contribute to the achievement of these goals. Clicks, installations, purchases or visits, the goals can be very different, but are clearly defined and can be evaluated.
Why should you use performance marketing for your business?
Unlike many other conventional marketing strategies, with performance marketing you can measure the success of your campaigns in detail andtrack the results in real time .
Based on the KPI’s given in performance marketing, you can give a clear target to the advertiser, who then uses it to conceptualize the content produced.
The trend clearly shows that influencer performance marketing is gaining interest and more and more companies want to use the performance-oriented advertising method .
We have summarized 10 reasons for you:
#1 Performance marketing is cost-effective
Compared to traditional marketing strategies, performance marketing is very cost-efficient. Billing is based on defined key figures or interactions. Thus, the remuneration is performance-based and your budget is only used if actual results are achieved, such as clicks, purchases or downloads.
#2 Higher return on investment
Another advantage is the higher return on investment with performance marketing. Because of performance-based compensation, companies get more bang for their buck. This low financial risk gives many young companies the chance to test new markets without risking a large sum from the advertising budget.
#3 New target groups and formats
Influencers, for example. reach your community on a wide variety of channels and always have a feel for current trends and new formats. Unlike traditional advertising channels like television commercials or billboards that reach everyone regardless of their interests and preferences, influencer marketing allows you to target a direct community that shares your values and interests.
#4 Transparent payment models
A big plus is payment according to agreed targets. Leads, downloads, registrations and clicks are the most popular performance marketing indicators and provide an overview of the costs incurred. You can read more about the pricing models here: *blog: Pricing Models*
#5 Performance Tracking
Since performance marketing relies heavily on data , every parameter has an impact on how well your campaign performs.
The individual key figures are tracked and the campaign can be optimized in real time. As a result, you have complete insight into the performance of the campaign and gain valuable learnings for the future.
#6 Low Risk
Because of its low risk, performance marketing emerged as a valuable tool for many companies of various sizes and industries. If the specified targets are not met, no additional costs are incurred. Thus, the risk of spending a lot of money for small results is very low with performance marketing.
#7 Engagement
Content is King, Community the Key. Many influencers have a very personal connection to their community and are in close contact with them on a daily basis. Advertisers benefit by being able to reach new active online audiences and increase engagement on their own platforms.
#8 Higher brand awareness & more sales
A well-produced post can reach millions of people in a very short time.
Brands can get a lot of attention with their placement and a performance-oriented influencer campaign can significantly boost sales as well as their own traffic.
#9 Qualitative content
The question of the new digital gold has long been settled, and well-produced content prevails in the long term. Because of the performance-based compensation, creators are eager to create viral, customized content for your campaign.
#10 You pay what you get
Unlike flat-rate paid posts, performance marketing only incurs costs when a desired interaction occurs. You can be sure that your marketing budget is well invested and track where you are with your campaign and how costs and results have been generated based on the KPI’s.
Conclusion
Performance marketing is a great way for your business to market products or test new markets. It has a high success rate and can be used in all industries.
The key is to find influencers with the right audience who are a good fit for your product or brand.
Want to learn more about performance marketing? We look forward to your questions! (Backlink Demo Sales)
Interested in a cooperation?
You have open questions or want to start your next campaign with us?
Our team of experts is looking forward to your message.
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