Today, when we talk about marketing, we hear more and more the expression “performance marketing”. However, not all clients usually understand what agencies are talking about. So, what does Performance Marketing mean?
Let’s dig into some basic concepts.
– What is Performance Marketing?
Performance Marketing is as it sounds — marketing based on performance. The main idea of it is to focus on a specific measurable result. Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers as known as “retailers” or “merchants” pay marketing companies such as “affiliates” or “publishers” when a specific action is completed such as click, lead, or, for example, sale.
– What is Performance 360?
Performance 360 stands for a complex approach to a performance marketing campaign, using all possible different channels to reach the target audience and to achieve a particular performance goal. As for user acquisition, it means using different channels like social, in-app, video networks and tools. For example, testing different creative approaches, building lookalike audiences, using retargeting or remarketing, etc. Basically, performance 360 is like an all-inclusive performance marketing service for a client.
– What is Facebook Business Manager?
Facebook Business Manager is a free tool developed by Facebook to allow businesses and agencies to manage their company’s pages, ad accounts, pixels and all advertisement campaigns in one place. There are a lot of benefits for setting up your own Business Manager on Facebook such as: manage billing information, quickly build custom audiences for your own product and a lot of other interesting things which can improve your results.
– What are the key traffic sources?
Let’s start with Facebook. Facebook covers about 80% of all existing offers. With its 2 billion active users it brings the client high-quality intent-driven traffic. Also, Facebook has good analytics both for media buyers and for clients. What is more important here: Facebook knows everything about its user. First of all, because of the profiles, the interests that you add but also because a lot of applications offer to sign up with Facebook. So, Facebook learns more and more about every user.
Google also has its audience network. It offers to sign up with Gmail as you know, but there is one but. Google works much better with Android than with iOS. Because Android and iOS, they are kind of competitors but iOS users are considered to be more solvent. So, it may influence the monetization of an app.
Twitter has been on the rise for the third time already. Twitter is more for big brands with SMM, because it is about a text. And the text is not a pop-corn for people’s minds but it’s the text which plunges the reader into the atmosphere and into the topic. Twitter users are more involved and ready to listen to the brand.
TikTok has its rapid growth in quality and quantity. Watching audiences and content makers are getting older and more solvent. Also, ad analytics is getting better and better, and TikTok covers more geo. Facebook and YouTube are trying to replicate the success of TikTok. Isn’t it an indicator of success?
And… video networks. Video networks are about thematic applications and engaged users that gives high-quality intent-driven traffic to the advertiser. It’s also about video ads which certainly are more tempting than just a simple static-banner nowadays.
– What are the top traffic sources in 2020?
Facebook is the most comprehensive. TikTok is the most rapidly growing. And video networks have the most engaged users in it.
– What are the advantages of Performance Marketing for the client?
Performance Marketing is a way how to increase sales. It is the result of the evolution of all digital areas, which are the use of online and offline channels. We can say that Performance Marketing has changed the approaches to advertising and selling goods or services. Therefore, advertising is becoming more transparent nowadays. So, why clients choose performance marketing?
Here are some advantages:
- Wide choice of traffic sources.
- Ability to measure an audience when collecting information about it. And you also can use this information in your future campaigns.
- Ability to change key metrics at any time of the campaign.
- Low risk.
- The choice of the promotion model is up to you.
– What is the test period? How long does it take and how much does it cost?
The test period is an important part of every promotion, especially when it comes to promoting new products and services. Test campaigns include:
- Test of creatives.
- Test of sources.
- Test of different metrics such as age, gender, geos and etc.
So we can say, that a productive test campaign lasts for a period of two weeks up to a month. The test duration and the budget depend on services and products promoted, as well as traffic sources and KPI which are set to be achieved.
I think that the test period is an extremely important and useful tool to make performance marketing more effective.
– Which niches are dying, and which ones will live on?
Businesses are getting used to a new reality, so people also adapting to a new sense of life, enhance new preferences. Recently, we have noticed that such verticals as fitness, entertainment, delivery services and food take-away have become organically more popular due to the rise of their demand.
– App or Desktop? 2020 selection.
Both mobile and web applications are relevant today. This is all the part of the digital world and we spend a significant amount of our time in the gadgets: mobile phones, laptops, tablets and so on. So, it is hard to choose between mobile or desktop.