Legendary 19th-century merchant John Wanamaker once realized that half of his advertising budget was wasted, but he didn’t know which half. Today’s brand owners face similar challenges- they know that digital marketing fundamentals like marketing and advertising works but, how? The patience and money it asks for are too high to maintain. That was when performance marketing came into play and became an ointment to their biggest wound i.e. maintaining cost and budget.
Do you know?
According to Statista, global spending on performance marketing was estimated around $13.3 billion in 2023. For India, the revenue generated from performance marketing in the year 2023 was around 16.8% of global spending as mentioned above.
Whereas, the Indian market is going to expand further up to $12.6 billion in 2024, having 48.8% share in digital advertising. Thus, contributing around 38% to the overall advertising industry.
How are Digital Marketing Fundamentals Helpful for your Brand?
Digital Marketing fundamentals is not just a book full of theories. It includes many insights and practical advice that a brand owner must consider. In this blog you will learn that performance marketing is key to that lock. After this, you will pay for pay for the key performance indicators, such as sales, clicks, or leads. This is the best way for brand owners to optimize the ad budget, and measure ROI in real-time. You can use various channels for this purpose such as social media, search engines, affiliate marketing, or video ads. Brands can set clear goals and track outcomes to effectively reach their target audience. Using performance marketing you can increase brand awareness, track the outcomes, and grow your sales. You can also apply performance marketing smartly and efficiently to grow your sales.
Types of Performance Marketing Channels:
Partner Marketing
Partner Marketing, is where two or more parties collaborate to promote and sell their products or services. This method can help you reach new customers, reduce costs, and achieve their marketing objectives. Here are the following types of partner marketing options to choose from.
Influencer Marketing:
You can collaborate with influencers, who are directly involved with your target audience. This way your audience will trust the product on a personal level. Hence, driving not only awareness but a trust in your brand.
Affiliate marketing:
It is a great trick to sell with the least spend. You must build a network and integrate referral services into your website or app. You just have to provide the affiliate link/code to the people and leave it up to them. How do they sell? Or, where do they sell?
Even though affiliate marketing decreases your spending on marketing. It increases your spending on other operations. Just like delivery, demo, and keeping track of people’s earnings. For an affiliate to work you have to work on your brand and its identity. To attract quality affiliates who will sell and advertise your product.
Commerce Content Marketing:
Commerce content marketing specifically targets online shoppers and aims to increase e-commerce sales. It involves creating and sharing informative engaging content to showcase the value of your products or services. You can put on product reviews, tutorials of your products and services, and testimonials. This strategy can help you bring a lot of traffic to your online store and grow your conversion rates. In this channel, your key performance indicators in retail is the orders placed excluding the return.
Display Ads:
Display ads are online advertisements that promote a product or service using images, videos, and URLs. The main purpose of these ads is to send the viewer to a website or landing page. On the landing page, they get to know the advertised product or service and buy it. The buying cycle may vary depending on the stage. Don’t know about it, Read it here!
Some common types of display ads are banner ads, rich media ads, and native ads. Select your type of display ads based on your brand, and the type of reach and customers you are expecting. You can even advertise over the apps that have the maximum amount of your target audience.
Search Engine Marketing:
Search Engine Marketing also called search ads, these kinds of ads need a lot of technical assistance. The technical assistance term here indicates the SEO, UI, UX, and Performance marketer. Everyone works in coordination to make your ad successful. The SEO team curates the content and optimizes it according to Google’s terms. Whereas the UI and UX teams work together to make the user experience top-notch.
How to Measure Performance Marketing Results?
When you are starting with Performance Marketing make sure, you follow digital marketing fundamentals while implementing a marketing strategy:
- Set SMART goals for your marketing campaign with a vision to increase the number of leads by 20% in three months.
- Choose the right platform for your advertisement and track data for every single moment on your website and marketing platforms.
- Determine your KPIs because every KPI does not apply to every brand.
- Follow the trends and make adjustments as needed.
KPIs to measure the results:
- Cost Per Impression (CPM): The amount of money you spend to show your brand advertisement one thousand times.
- Cost Per Click (CPC): The amount an advertiser pays only when someone clicks on the ads.
- Cost Per Sale (CPS): Every brand owner spends money on advertisement, thus, the return they are getting on per sale after the conversion process is called CPS.
- Key Performance Indicators (KPIs): These are the most important metrics for every brand owner. It tells how well your campaigns are performing via conversion rates, return on investment, cost per lead, etc.
Let’s Sum It Up!
Digital marketing fundamentals are not just as simple as you have read above. It needs a lot of research and clear rules while setting them up. You should have proper resources to cater to the sales you bring in. Here are some tips you should consider before setting up a marketing strategy to make it successful.
- Be crystal clear in your objectives.
- Make sure that you impact people and not just advertise.
- Pursue your audience.
- If you can make it funny, do it!
- The campaign should have 1% strategy and 99% execution.
- Optimize your ad. From time to time. And do track it often.
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