A fast-growing digital world is a boon for savvy marketers — the digital environment opens the door wide for marketing teams to see, track and analyze marketing data online. Increased access to data allows marketers to capture more insight into the customer journey and how effective current marketing efforts are.
Digitization has also contributed to the rise in performance marketing. Unlike traditional paid advertising, where marketers pay upfront to run an ad, performance marketers only pay for advertising when it results in a specific action — a link click, a conversion, a lead. Marketers have the freedom to choose the actions they want to link to campaigns, based on evaluation of overall goals or budget. The result is that performance marketers spend less money for greater return, because they don’t pay to run an ad that performs poorly.
Performance-driven marketing uses strategies that prompt tangible actions, not just brand awareness. Keep reading to learn more.
What Is Performance Marketing?
According to HubSpot research, 39% of marketers said proving the ROI of marketing activities was their top marketing challenge in 2018. Performance-based marketing draws a direct line between marketing spend and marketing return on investment. It’s a logical, mathematical strategy driven by metrics and numbers.
Performance marketers evaluate a company’s needs to determine their top priority goals — whether that’s generating more leads, converting more leads into sales or expanding brand reach and awareness. They strategize and create campaigns attached to specific company goals, and then use metrics to track performance throughout the campaign.
Performance marketers have the opportunity to monitor and analyze marketing data in real time, and they use real-time results to guide changes in strategy, budgeting and duration of campaigns, depending on how closely they’re tracking to meet goals. They also study metrics like engagement, traffic and actions taken to determine which media channels and messaging are most effective for reaching potential customers.
Marketers use their resources efficiently to reduce acquisition costs and drive more revenue toward the marketing return on investment. They use insights gleaned from performance data to make investments and allocate spend to high-performing, top-priority channels.
Performance-driven marketing has 3 main benefits for companies:
- It’s low-risk and cost-effective, because you only pay for advertising that results in an action
- It’s 100% measurable and easy to track the performance of all your campaigns
- It’s an ROI-centered marketing strategy that capitalizes on ways you can spend efficiently while driving more to your bottom line
Performance marketers know that effective marketing doesn’t require spending the most money. It requires thinking the most strategically and using resources the most effectively.
What Are the Goals of Performance-Driven Marketers?
How will a performance-based marketing team work to ensure your company is hitting performance targets for every campaign? The keep the following goals top of mind for all marketing efforts:
- Make wise investments into media and advertising channels that generate measurable results
- Match every marketing campaign to: 1.) An identifiable, top priority company goal and 2.) The key metrics required to track and measure progress toward the goal
- Optimize every campaign to produce the highest number of leads, conversion and sales at the lowest cost per acquisition
- Use performance data to guide recommendations for shifting strategy and increasing or decreasing budget throughout campaign runs
- Increase the return on investment for marketing spend
The primary goal for performance marketers is to do marketing the right way: they aim to put the right content in front of the right audience at the right time.
Who Is NewGen Marketing?
NewGen Marketing offers a full range of services for companies that are ready to invest in performance marketing. Our executive team has decades of experience driving performance-based sales and marketing initiatives for leading brands in the health care industry. We focus on 7 primary areas where we can help your company meet sales goals:
- Strategy and investment
- Paid media
- Social media
- Organic traffic
- Acquisition cycle and call center
When you’re ready to invest in the marketing strategies that will drive more to your bottom line, contact NewGen Marketing so we can schedule a free consultation to discuss your options.