Learn about performance marketing

Performance marketing is a category of digital marketing, but it is 100% focused on results. As digital media manages to work well with data logging, it is easy to follow the customer’s actions in an ad: if the campaign was shown to him, if he clicked on the ad, accessed the website, placed the product in the cart, finalized or not the purchase and other aspects.

The performance is able to count these numbers and generate data and reports that show if the deals closed by the people affected cost the investment that was made. Other than that, it shows which dissemination channel generates the greatest financial return and ticket average, which campaign does best and which product and which categories generate the most conversions. That is, strategic data for the manager of a e-commerce  know how you can more assertively direct your budget, reducing the amounts invested in ineffective channels and increasing those that generate the greatest return.

But why is performance marketing so important to companies?

Think about it: a soft drink brand makes a campaign for open TV on channel X, which is the most accessed in the country. The brand knows, for example, the average number of viewers with the TV on at the time the campaign is aired. But how do you know how many people actually saw the ad? And how do you know how many more soft drinks were sold exclusively to people who were impacted by the ad?

This scenario is typical of the marketing of awareness  because, of course, brands obtain some result, or otherwise they would not continue to invest in these media, but this return is not that palpable. It cannot identify the moment when the investment in channel Y, which is only the third most watched, will be returning more customers to it than those shown in other media. It’s impossible for her to understand this.

Performance, on the other hand, uses the facilities of digital media to follow the entire journey of the client and make investments more accurate, especially for the e-commerces . In what way? Tying the ad to its path: how many times the ad was triggered and displayed to the customer, how many times customers clicked on it, and how many times they initiated and completed a purchase or initiated it but gave up on it. Managing data like this allows you to know where there are ties in the marketing process and know exactly what to improve, in a clinical way.

See some examples:

Scenario:  the customer sees the ad but rarely clicks

Action:  improve text, images and ad strategies

Scenario:  the customer sees the ad and clicks on it, but exits the e-commerce

Action:  target ads to products that interest you, use the same ads for another audience profile, or improve the site

Scenario:  the customer sees the ad and clicks on it, puts the product in the cart, but gives up on the purchase

Action:  improve website reliability, invest in security or improve payment options

Of course, these examples are a small sample of what it is possible to measure in performance marketing, but this is its main differential: the ability to measure data that show whether the chosen media is efficient, whether the chosen channel is a good one, whether the site meets the basic requirements for the customer to buy and so on.

With this, the manager has a strategic overview to better target his investment and clearly know how the money returns to him (or if it gets lost along the way). He is able to invest in the best channel for his business and have information about which channel is best for him, not based on the national average, but on specific numbers about the business and on performance marketing actions.

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