Marketing performance is result-oriented marketing. This may seem strange, because any work is done for a reason, but for some purpose. Ringostat will tell you what performance marketing is and how it differs from other types of marketing. We also asked experts from SODA , Elit Web and Raskrutka to talk about the benefits of Performance.
Let’s look at a small example. Let’s say a company needs a landig page to collect warm leads.
- A contractor under a standard contract that does not imply a performance approach will perform everything according to the terms of reference and receive payment for the work done.
- The performance agency will not just create the page, but will test and improve it even after the release. The agency will get paid based on how many leads or customers this page generates.
What is performance marketing
This is a very simplified example, because usually the tasks of performance marketing relate to complex promotion. The described service would also include SEO promotion of the landing page, setting up contextual advertising on this page, A / B testing with further improvements – everything, up to repackaging the product for a different audience, if necessary.
Performance marketing should be distinguished from performance marketing. The performance approach is used by companies to build their own marketing departments. Its essence is to regularly measure key indicators and work on Belarus Email List improving them. For example, we at Ringostat constantly monitor the number of leads and reach using a special dashboard . In performance marketing, a specific goal is set. It must be measurable – otherwise it is impossible to understand whether it has been achieved or not. “Improve SEO” is an abstract goal, you can work on it endlessly and consider.
That you are staying at the starting point
In a performance, the goal is more likely to be: “Increase the audience from organic search by 100% by December 20th.” By the date indicated, it will become clear whether the desired result has been achieved or not, whether the number of visitors has doubled.
Analytics is the backbone of performance marketing. The customer and the contractor initially determine what indicators they will work on. Consider the main ones:
- traffic – how many people visited a particular site;
- number of leads — how many leads were generated by the contractor’s advertising campaigns;
- cost of attracting a client, CAC – the ratio of the price of marketing activities to the number of clients received;
- lifetime value of the client, LTV – average income from the client during the cooperation;
- return on marketing investment, ROMI – how much money the company received from each dollar invested in promotion.
