Why performance marketing will conquer the advertising industry. Or not?

August 10, 2017
277 Views

People tend to ignore advertisements when reading magazines better still they prefer to only go through the advertisements that are attractive. Advertisements are paid for with consideration of the number of people that will view it. Most times, ads are not usually viewed if they don’t come attractive or if they are put side by side with an article that looks boring.

Performance marketing is a way of going for online alternatives for advertisement which features mobile marketing, mobile user acquisition, cost-per-lead, cost-per-action and cost-per-install which is cheaper compared to magazine adverts. It’s a means of advertising paid for, though not at a specific price, but with a price that depends on the performance of the advertisement which features mobile marketing, mobile user acquisition and cost-per-install etc. Performance marketing could also be paid for using these variables:

  • The amount of times the ad was clicked (CPC)
  • The number of times the ad led to sale (CPA)
  • How often there ad gets a lead (CPL)
  • How often the ad is displayed to a user (CPM)

Performance marketing is not limited at all, and it’s already taking over the advertising industry as it has expanded even to the extent of mobile marketing. Another example is, CPM which is being used by directory-assistance providers. Mobile user acquisition is also included. Performance marketing also works with affiliate marketing which is a means of paying internet publishers (affiliates) commission based on the lead or sale generated by their website. Cost-per-install is also a way of payment based on the amount of installations generated by the ad created.

Companies whose means of getting through to their customers is the internet are usually the ones who initially employed the use of mobile performance agency. Examples are fashion retailers, automobile dealers and insurance companies. You will agree with me that today, almost every business or company has created an online presence through social media. Most importantly, businesses with small budget have been able to boost and grow their income by employing cost-per-action ads (CPA) which assures them of payment on every advertisement that gains positive leads.

This style of marketing are bought widely from websites interested in making profit through the traffic generated in addition to selling their own goods and services. Search engines that one can subscribe with for performance marketing from include Google, Yahoo!, Facebook, Juno and other blogs.

People who spend time using the internet are the main audience for performance marketing companies, which happens to be the current trend in the world. Performance marketing is basically for online sales. An assumption therefore for performance marketing, is that the targeted audience are also comfortable with online bank transactions. As they are usually people familiar with e-commerce and are good in the aspect of mobile user acquisition.

Performance marketing makes use of keywords which appears only to people using the internet for searches related to the keywords. This is mostly for CPC ads. These ads come in different sizes either banner or text or pop-up/pop-under. Popular keywords usually are following the law of demand and supply. Less popular word cost less per-click or per-install while most popular keyword costs more per-click and per-install. Auction is used to decide the exact cost.

This style of marketing is also popular on mobile apps and it generates a lot of returns because users easily click n adverts while using their applications.

I trust that you now agree with me performance marketing is taking over the advertising sector. Perhaps, you are still doubting if you would really earn from it, you better jump in right away.

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