What is Performance Marketing and Its Importance?

Publish Date Sep 12, 2023

There was a time when online advertising campaign successes were measured simply in clicks, installs, impressions, and shares. Advertisers used to make ads, pay for their placements, and hope for positive results.

That's passé. Today, advertisers are a demanding lot. They want healthy returns for their money, and this is where performance marketing by top performance marketing agency Navi Mumbai, TG Connect Media Services, plays a critical role. With its capability to leverage advanced advertising methods and status as the leading performance marketing agency in Navi Mumbai, TG Connect Media Services, plays a critical role. With its capability to leverage advanced advertising methods and status as the leading performance marketing agency in Navi Mumbai, TG Connect can ensure online advertising campaigns can indeed deliver measurable results.

WHAT'S PERFORMANCE MARKETING?

Also called Online Performance Marketing or Performance Media Marketing, Performance Marketing is a strategy or a process that allows advertisers to pay their affiliates, advertising publishers or performance-made marketing agencies only based on the performance ratio agreed upon between the two parties. It is so good that it synergizes the best of advertising and brand marketing activities while staying focused on measurable results to determine the payout figure. It means advertisers and service providers will earn their rewards only if the performance criteria are met.

Performance marketing links its output to specific business conversions and overall business performance. Some good examples include the placement of an ad on the YouTube platform. Viewers who log into the YouTube platform are bound to see the ad and even click it. As a result, the advertiser and service provider both earn value for their money.

WHAT MAKES IT SO GOOD?

Performance marketing is goal-driven. It means to ensure that advertisers pay when the goals are met. The goals can be from generating a lead to subscribing to a newsletter, increasing clicks, decreasing bounce rates, and likes that earn positive returns.

Aside from this, it

TRACKS PERFORMANCE

Performance marketing offers varied methods, making it easy for marketers to track performance and ascertain the appropriate performing source.For instance, under the first-click method, the first-click refers to a visitor to the website. As a result, the click is acknowledged for any purchase or conversion made on the website. Similarly, under the multi-touch attribution method, all the avenues linking the buyer to a purchase or conversion earn a commission; suppose the buyer is influenced by a marketing email, blog, or YouTube video, then the relevant avenue is credited with the sale. Though the tracking process is complicated, it gives a more accurate picture of the buyer's journey.

REDUCES RISKS

Aside from its ability to track better, performance marketing carries a low-risk option. That's because payment is not made until after the actual sale or conversion. It also helps monitor the advertising campaigns throughout the campaign journey while facilitating ad campaign adjustments in areas prone to risks.

EARNS GREATER ROI

When you invest, it's natural to expect healthy returns on it. Likewise, businesses expect the same where performance marketing offers them quality returns on investment (ROI) with fewer risks. However, marketers will need to forecast the profit potential while businesses must pay for only what they request. This way, it will allow businesses to focus on their core areas.

EXTENDS ADVERTISING REACH

Marketers will have many options to extend and broaden their advertising reach. It will help in the better and broader promotion of products and services. With performance marketing, marketers can also leverage varied advertising methods like blogging, banner ads, email marketing, pay-per-click ads, product reviews, YouTube videos, and engagement with Facebook groups.

FACILITATES THIRD-PARTY VALIDATION

Generally, how successful a marketing campaign is or will be can be estimated or calculated only by marketers themselves with modern-day validation technology tools. It will indicate whether the campaign has been successful or not. If it has, then certain sections of people could doubt the same to avoid such a situation, it's better to get the campaign's performance and results validated by a neutral third-party source.

So, this is what performance marketing offers – third-party validation. It will involve third-party sources like influencers and affiliates to promote and market the products and estimate their performance and results. As a result, buyers will be more likely to purchase after reading a trusted review.

Aside from the above benefits, performance marketing also allows marketers to see how their keywords are ranking. If they adopt a more organic route, they will make needed adjustments to the keywords based on their performance. Marketers will also see how their paid and organic efforts work and how they impact each other.

The best aspect of performance marketing is its 100% measurable. It allows you to see when traffic is converting into leads or if the quality of traffic is low or poor.

CONCLUSION

Performance marketing's pros outweigh its cons. It's perfectly suitable for today's data-driven, results-oriented digital landscape that rewards performance. To get the best out of performance marketing, you need to enlist expert advice. You will need the expertise and skills of the best performance marketing agency in Navi Mumbai, TG Connect Media Services.

True to its status as a premier performance marketing agency in Navi Mumbai, TG Connect provides holistic solutions that reveal the direct link between your investment and the final result, like the exact amount of money spent to increase the sales of your products.