The purpose of performance marketing is to make the results of your marketing initiatives visible .
Using analysis tools such as Google Analytics, you can evaluate and analyze your results in detail. For example, you can see how often Controlling in performance an ad was display, how often your website was visit, or how often an order was placed in direct response to an ad.
4. Optimizing performance marketing Controlling in performance
Based on the data evaluated in controlling, you can then adjust your advertising materials . Key metrics such as conversion rate, traffic data, and special lead cost per conversion are reviewed in relation to the defined goals, and the corresponding marketing initiatives are optimized.
Let’s say your ads are being viewed or clicked frequently, but you’re seeing a high bounce rate on your website. In this case, it’s important to determine the reason .
Potential customers may have difficulty finding the advertised product, there may be missing call-to-action elements, or your copy may lack Controlling in performance meaningful content. You can then optimize aspects that need improvement and review your success at any time through controlling.
Digital Performance Marketing: Advantages and Disadvantages
Performance marketing offers numerous opportunities . According to Bitkom , nearly 250,000 people work full-time in the digital analysis of factors affecting cdn quotation marketing sector in Germany, and the industry generates nearly 20 billion euros.
For me, that means you have to stay on the ball – even if constant optimization involves a relatively large amount of effort.
Below I have compared the advantages and disadvantages of this marketing method:
Advantages of Performance Marketing
- Measurable results and detailed conclusions
- Targeted optimization measures
- Advertisements can be varied flexibly
- Costs only payable if successful
Disadvantages of performance marketing
- Regular data analysis is a must
- Professional evaluation of the data is necessary
- Continuous processing of the campaign is necessary
- Costs increase with success
Billing models in performance advertising
With performance advertising, billing is based on the success of an ad . Thus, payment is only due when the defined purpose is fulfilled. The focus is on specific user actions, not simply generating reach, as is the case with a cost per mille.
Therefore, billing is possible using different models :
- Cost per Click (CPC) : The CPC variant means that you pay a fixed amount for each click on the ads you place.
- Cost per Action (CPA) : Here, you pay whenever a user performs a specific action as a result of an ad. This could be, for example, a download or clicking on a link.
- Cost per Lead (CPL) : If you bill per lead, you business sale lead only incur costs when users provide you with their contact information. This might be the case, for example, when registering for your newsletter.
- Cost per Sale (CPS) : This form of billing means that costs are only incurred when a sale or contract is successfully concluded as a result of an advertisement.
Tools for performance marketing managers
If you work in a performance marketing agency or carry out measures of this kind in your company, you will stumble across dozens, if not hundreds, of possible software options.
The field here is very broad, so I’ll introduce you to just a handful of online and performance marketing tools I like to work with:
- As is often the case in online marketing, Google Analytics is one of my favorite tools – and this also applies to performance marketing. This free platform provides you with detailed insights into user behavior and traffic sources.
- Semrush is also one of my favorites. This tool is especially helpful in the area of SEO—that is, improving Google visibility and analyzing keywords and competitors. Prices start at €139.95 per month and top out at €499.95 for the business version.
- One specialized tool is Everflow : This performance marketing platform integrates tracking, analytics, and partner management, making it ideal for managing and optimizing affiliate and partner programs. Pricing is available upon request.
- Hootsuite is perfect for your social media activities. It lets you manage and schedule content across multiple platforms. The most popular plan is the Team option, which costs €249 per month and includes 20 social media accounts.
- Last but not least: AdRoll . This tool specializes in retargeting and programmatic advertising. What I find interesting is that it offers the option to only pay for what I actually use, allowing me to tailor my spending to my individual needs.