What is performance marketing and what are the first steps for companies?
SEO, SEA, e-mail marketing, marketplaces: these are just a few areas of performance marketing, a marketing strategy that deals with the implementation, evaluation and optimization of advertising measures with clearly measurable performance.
More website views, registration for a newsletter, the targeted promotion of a suitable product for the respective customer need and thus, in the end, an increase in sales figures- for companies, performance marketing is an important tool for achieving marketing goals and it is impossible to imagine today's advertising landscape without it.
We asked our SEA team to answer the most important questions about performance marketing.
How time-consuming is performance marketing? And how do I even get started?
In particular, all-encompassing performance marketing is very time-consuming, because as a rule, one person with full knowledge often can not cover all areas (SEO, SEA, e-mail marketing, etc.) alone. In addition, there are many different tools and an infinite number of store systems with different plugins, and much more. Here, the advice of specialized agencies is useful. In addition to the set-up, they can take over all processes on request or provide fast and efficient help through regular training and advice for employees. One thing is certain: a well-coordinated and creative team with comprehensive expertise is the basic prerequisite for successful performance marketing.
Performance marketing is based on four pillars: defining goals, determining measures, controlling and continuous optimization.
The first step in performance marketing is goal setting. In order to measure the performance of a campaign, measurable goals must be defined. Without these goals, no successful marketing strategy can be set up with measurable results. These include marketing goals such as increased sales or image building, campaign goals such as increasing impressions or website views, or customer-related goals such as building trust and customer loyalty. Performance marketing tools are crucial instruments for achieving the respective business goals.
We say: With the appropriate means, almost all realistic goals are achievable.
Defining the measures is the second step for successful performance marketing, whereby the measures must be aligned with the previously defined goals. If more attention is to be drawn to a product line, search engine advertising is suitable. For long-term visibility on the Internet, search engine optimization is the right choice, while social media marketing stimulates customer loyalty.
As soon as the objectives are set and measures are aligned with them, the third step, controlling, is started. Depending on the objective, different values are taken into account, which is why different analysis tools are used. An SEO tool such as Google Analytics is designed for website optimization, while CleverReach is suitable for e-mail marketing.
The continuous optimization is based on the defined goals and the set measures. The optimization concerns, for example, the campaigns, the advertising media or the landing pages. Does the budget need to be increased, or is the target group not yet being addressed precisely enough? Different adjustments have different effects and different chances of success. Fixed key figures such as website views or newsletter subscribers can be reset over time so that the goals do not stagnate.
For which topics does performance marketing make sense?
Performance marketing can be used for a wide range of purposes. For example, product sales can be advertised, brand awareness can be increased, and employer branding and interactions can be promoted. Job postings via social media are also possible - all around topics that generate leads or sales and should be measurable. The market entry strategy can also be supported with performance marketing.
You will find out how performance marketing can support your market entry strategy in the second part of this practical tip.