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Posted on / by nommad / in In Media

What is performance marketing and why is it so important to companies?

Performance Marketing is a category of digital marketing, but that is 100% focused on results. Because digital media manages to work well with data logging, it is easy to keep track of the customer’s actions in an advertisement: If the campaign was displayed to him, whether he clicked on the advertisement, accessed the site, placed the product in the cart, ended or not the purchase and other aspect ‘s.

The performance manages to account for these numbers and generate data and reports that show whether the businesses closed by impacted people would cost the investment that was made. Other than that, it shows which channel of disclosure generates the highest financial return and average ticket, which campaign is better and which product and which categories generate greater number of conversion. That is, strategic data for the manager of an e-commerce know how it can more assertively target its budget, wiping the figures invested in unefficient channels and increasing in those that generate greater return.

But why is performance marketing so important to companies?

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

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

The performance uses digital media facilities to track the entire customer’s path and make investments more accurate, especially for e-commerce. In what way? Tying the ad to your path: how many times the ad was triggered and displayed to the client, how many times the customers clicked on it and how many times they started and completed a purchase or started it, but gave up on it. Managing data like these lets you know where there are tethers in the marketing process and know exactly what to improve in a clinical way.

Here are some examples:

Scenario: The customer sees the advertisement, but rarely clicks

action: Improving the text, images and AD strategies

Scenario: The customer sees the advertisement and clicks on it, but exits e-commerceAction: segment ads with products that are of interest to you, use the same ads for another public profile or improve the site

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

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

Of course, these examples are a small display of what is possible to measure in performance marketing, but this is their main differential: the ability to measure data that point if the chosen media is efficient, if the channel chosen is a good one, if the site meets the Basic requirements for customer buy and etc.

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

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