How to Build a Performance Marketing Strategy for High ROI
Performance marketing is ROI (return on investment) focused marketing where you pay for the specific results or actions such as a lead, click, sale, or signup. It is not like traditional marketing where it is hard to measure the performance and you pay without knowing whether it is working or not. This popular performance based marketing can help you track the performance as well as optimize it further and get better results.
So how does it exactly work?
Advertisers or businesses reach out to publishers/agencies with their products/services. These agencies publish the advertisements on different marketing channels such as social media, youtube, websites, search engines etc. and when a specific action is completed it could be a sale, click or a signup and that is when the agencies get paid.
In this article, we will see how you can build a performance marketing strategy for high ROI.
Channels and Metrics used in Performance marketing
Here we have listed down some of the key marketing channels and metrics used in performance marketing –
Types of performance marketing channels –
- – Native Advertising
- – Content marketing
- – Email marketing
- – Social media marketing (SMM)
- – Affiliate marketing
- – Search Engine Marketing (SEM)
Metrics Used –
- – CPC– Cost Per Click
- – CPS– Cost Per Sale
- – CPL– Cost Per Lead
- – CPA– Cost Per Acquisition
Performance Marketing Strategy for Achieving High ROI –
1. Choosing the Right Channels
In performance marketing, choosing the right channels is the first step. Knowing where your customer base is, their age, gender, demographics is really important.
If you don’t know about your customer base, choose different digital channels based on your products or services. You can even experiment with different channels and see which one works better. Set your budget and campaign goals for your target audience and start experimenting. Please keep a budget for different channels and do not depend only on one channel. You can try social media channels such as Facebook, Instagram, tiktok and then there are google ads, You tube ads etc. Analyse the performance and see what channels are working best for your target audience. Slowly optimise according to the audience preferences and behaviour.
2. A/B Testing
A/B testing or split testing is an essential part of performance marketing. If you want to improve your ROI and are not working on split testing then you’re losing out. A/B testing involves 2 versions of a marketing element; it could be a web page, ad, CTA’s, or a video. You show it to different users to see which option is getting better results. Through A/B testing you can get to know the preferences of the users and get other insights. Through this method, you can improve customer experience, better campaigns, make better decisions etc. You can do split testing with email subject lines, CTA’s, landing pages, ad creatives, ad placements, and can even do time and frequency testing.
3. High Quality Content
Whether it be email marketing, product description, blog posts, or videos, quality content that is optimised not only brings traffic but also converts. For any products or services we need high quality content either be it for the campaign or landing page. Without quality content customers may not engage with the services or products however good your other marketing strategies might be. A good content not only informs about the product or services but also makes people connect with the brand value, builds trust and increases engagement. It brings awareness and makes people interested in the product or services.
4. Retargeting
Retargeting is another strategy for getting better ROIs. In retargeting, you target visitors who previously interacted with the website or landing page but didn’t complete the action you were aiming for. It could have been a signup, subscription, or a purchase. Retargeting tries to engage these visitors again and complete the desired action. Basically, these are the people who have shown interest in the products or services and are likely to take that action if pushed in the right way. This is also a great way to engage first time visitors as they mostly leave without purchasing. Re-engaging with customers who are interested or have shown interest previously can increase the output.
5. Mobile Optimisation
We’re all on our phones 24/7 and most of the purchases these days are done from mobiles and not desktops. If you are not optimizing your website or landing page for mobile, then you are missing a huge chunk of potential customers. Also, mobile advertising has massive reach and high conversion potential.
6. Tracking and Optimising the Performance
Keeping track of the campaigns is one of the most important parts of generating high profits. Setting the right KPIs and tracking the performance on a regular basis and making changes as and when required has to be done. Only tracking and measuring can lead to further optimization. Keep analysing the data and find areas for improvement. Keep tweaking things to see what works better. Creating the best landing pages or website will not bring results if you are not tracking the performance.
7. Leveraging AI
AI is taking over the digital world. If you are not taking AI’s help you are missing out on a lot of growth, efficiency and optimisation chances. You don’t have to over rely on it but using it the right way will help you move things in the right direction way faster than doing everything manually. Using AI powered marketing tools for automating routine work and basic campaign management can improve the efficiency. And on top of that, AI can also help with optimisation of campaigns for better performance.
Conclusion
Smart performance marketing is a combination of the right tools, right platforms, and the right strategies which only happens when you put in smart work. With so much competition in the online world, there are a lot of opportunities as well as performance marketing tools available to get you through. These tools make your work efficient and help with tracking results. But do keep in mind, keeping things in a budget to get the maximum output takes time and a lot of effort.