BPM Analytics
Strategies for scaling and maximizing ROI in Performance Marketing
Businesses invest lots of money in marketing! However, there are several instances when these investments fail to achieve the expected results!
Enter- Performance Marketing or Marketing that performs!
It differs from traditional marketing where a business pays for impressions. In performance marketing, you pay for tangible results.
Performance marketing: The concept
Performance marketing is a strategic approach to marketing in which advertisers compensate based on the attainment of particular actions or outcomes, such as clicks, leads, and more. Performance marketing is done through channels like affiliate marketing, Pay-Per-Click (PPC), Social Media Marketing, and Search Engine Marketing (SEM). The marketing campaign decisions are made based on results that can be measured.
Metrics for Measuring Performance Marketing
CPM (Cost per Thousand Impressions): It indicates how expensive marketing on a specific platform is based on the competition to reach your target audience.
CPC (Cost Per Click): It is a metric that indicates the cost incurred to get someone from your ad on your website.
Cost per Conversion: This metric is specific to a business. For an e-commerce business, the metric is known as Cost per Sale. It could be CAC or customer acquisition costs or expenses incurred for making a sale to new customers. For B2B marketing it could be CPL or Cost Per Lead.
By utilising these metrics, businesses can assess the effectiveness of their campaigns and monitor their return on investment (ROI). Analysis of data related to marketing enables businesses to ascertain which strategies or channels are driving more revenue.
How to Maximise ROI in Performance Marketing?
- Conduct A/B Testing
- Identify the Best Traffic Sources
- Dynamic ad Campaigns
- Re-engaging with Users
- Optimise Costs
- Generate High-quality Content
- Track your Campaigns
- Consider the Latest Trends
- Leverage Technology
Businesses can test variations of ads, landing pages, and other targeted parameters. A/B testing helps businesses identify the most effective messaging, creative elements, and call-to-action strategies. With continuous iterations businesses can optimise marketing campaigns and boost ROI.
While there are numerous channels through which you can generate leads, it is recommended that you focus only on those channels that are relevant to your target audience. Setting up performance marketing campaigns over specific channels optimises costs.
Performance marketing helps businesses create dynamic ad campaigns that can adapt according to customer behaviour and the preferences of individual users. Businesses can send personalised messages and recommendations to potential customers which boosts engagement. This enhances the likelihood of conversions and consequently drives higher ROI.
Businesses can re-engage with users who have shown intent previously by retargeting and remarketing. These techniques help businesses nurture leads, build brand recall, and increase conversion rates thereby boosting ROI.
In traditional marketing, costs can escalate without giving any results. However, in performance marketing, businesses can set budgets and bids according to their marketing objectives. Performance marketing enables businesses to optimise their ad campaigns in real time. They can modify their strategies and allocate resources to campaigns that drive a higher ROI.
Content is the backbone of any marketing campaign. High-quality content which is optimised for searches is a vital ingredient for performance marketing as well. Creating messages that resonate with your audience engages them and leads to conversions.
Monitor how your marketing campaign is performing on an ongoing basis and make the required adjustments for better outcomes. Analysis of data from your campaigns can help to identify areas of improvement.
Performance marketing is a dynamic field where there are frequent changes and updates. Make sure that you are updated with the latest trends and technologies for effective campaigns that boost your ROI.
Technology has a major role to play in optimising performance marketing to boost ROI.
Repetitive tasks such as ad scheduling, budget allocation, reporting, etc., can be automated with the help of Robotic Process Automation tools. Automation of these tasks boosts efficiency and saves time.
Artificial Intelligence (AI) can optimise performance marketing by providing valuable insights to marketers. AI can analyse both structured and unstructured data and provide information about ad messages or campaigns that are aligned with the needs of your audience. Data analytics also helps businesses assess which channels and strategies are providing the best outcomes.
Machine Learning (ML) is a technology that learns from existing data sets. ML can make forecasts based on existing patterns. These insights help businesses create futuristic campaigns that help in conversions.
Although automation technology is expensive, it offers returns that more than justify the investment. Automation offers a cost-effective solution for managing a myriad of marketing processes.
Performance marketing helps a business to scale its campaigns according to its needs. It facilitates testing new markets, launching new products, increasing its customer base, and more. Businesses can scale their efforts based on the outcomes of these campaigns. Performance marketing offers agility to the business so that it can refine its marketing strategies according to the needs of its customers.
