Spreading a word about your product or service is the gist of marketing. Presently, performance marketing is a popular marketing approach that is providing amazing results. The performance marketing agency New York is one place that excels in not just performance marketing but also brand building.
Performance marketing agency plays certain analytical functions, which help you with efficient marketing planning. Whether it is estimation of budget, targeting, segmentation, performance channel evaluation or forecasting campaign performance, the performance marketing agency fulfills all the key roles.
Essentially, the performance marketing falls under digital marketing that is result driven. Mainly the popularity of performance marketing is increasing because the cost of this approach depends on the user interaction with content. More the number of customers interacting with advertisement content, higher will be the cost of performance marketing. In this manner, a company pays for only the content that is providing a good conversion rate.
Performance marketing costing:
There is no fixed cost for performance marketing. Every marketing agency decides the costing for performance marketing using five prevalent methods in the industry. Following are the different ways of ascertaining cost of performance marketing:
- Cost per Click (CPC) – We all see various advertisements on the internet. But only a few ads persuade us to click on it for more information. Under the cost per click method, a company pays according to the number of clicks that its advertisement gets. This method makes driving traffic to websites extremely efficient in monetary terms.
- Cost per Impression (CPM) – Unlike the CPC, cost per impression determines cost on the basis of views of your advertisement. For every thousand views you pay a particular price.
- Cost per Sales (CPS) – It only makes sense to pay for an advertisement when it actually leads to the sale of the product. The cost per sales allows a company to pay for only the advertisement that converts into sale of product.
- Cost per Leads (CPL) – Another great way of performance marketing allows you to pay for lead generation. Whenever an advertisement persuades the potential client to provide information like email address, phone number, etc it forms a part of cost per leads.
- Cost per Acquisition (CPA) – The cost per acquisition is very similar to the cost per sales and cost per leads. In this the advertisers pay whenever a particular action takes place. It can be either sale, providing contact information or any other basis that helps in customer acquisition.
Best performance marketing channels:
Now that the costing aspect of performance marketing is clear, it is important to learn about the various performance marketing channels. The following list of performance marketing channels are suitable for almost all the industries:
- Banner Ads – There is hardly anyone who does not witness an advertisement while surfing the internet. These advertisements form a part of banner ads. Displaying an advertisement that grabs the attention of the internet users is something on which several companies rely. However, the banner ads are now losing their charm. There are comparatively few advertisers who are getting good conversion through banner ads.
- Native Advertising – The best aspect of native advertising is that it feels like organic content. Whenever you are watching videos on Youtube, there are certain ads that come while watching a video. These advertisements are what we call native advertisements. The benefit of advertising your product without compromising on the natural appearance of the website is what makes native advertising a go-to channel.
- Content Marketing – Content is the key to success for almost every brand. Marketing is a mix of promoting a product along with providing education about the brand. This job of educating customers is completed by content marketing. With the help of guest posts, blogs, etc. the content creators pass on information about the brand and the benefits of its product. This knowledge persuades viewers to purchase the product or service.
- Social Media – Expanding the reach of business is the only way of increasing sales. And for this there is nothing better than social media. All the various age groups are now active on social media, making it extremely easy to spread a word about your brand. Facebook, instagram, linkedin, and twitter are the most popular platforms for spreading a message to the masses.
- Search Engine Marketing – Whenever we hear about a new product we instantly search for it on search engines like google, yahoo, etc. Clearly, the search results on the top of the list grab our attention. As a result it is crucial for a website to opt for search engine marketing. Only when you are visible during search results, will you get new customers for your product.
To conclude, performance marketing is one approach that not only promotes your product but also gives you vital information about your marketing plan. The key information paves way for better marketing strategy in future. It is the knowledge about what works and what doesn’t that helps you in building an impression on customers. With performance marketing you get access to all this information and much more. So whether you are starting a new venture or expanding the existing one, a visit to a performance marketing agency is all you need.