Understanding the Basics: How Omnichannel Performance Marketing Works

Marketing Performance

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18 digital marketing metrics and KPIs you should know

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18 digital marketing metrics and KPIs you should know

In today's business landscape, performance marketing has taken center stage, and with good reason. Companies now require concrete ways to measure the impact of their activities and justify expenses. And performance marketing offers this solution because it helps businesses fine-tune their ad campaigns and achieve maximum returns on their investments.

What Is Performance Marketing

In this article, we'll speak about the active channels that drive the success of performance marketing – from native advertising to content marketing – explain how it works, highlight its benefits, and talk honestly about the challenges it faces.

What Is Performance Marketing

Performance marketing is a strategy where you pay for results, such as clicks, conversions, and sales, and not just for ads.

Performance marketing is like the clever cousin of advertising. It's not just about showing off your brand but about getting things done. Instead of showing ads and hoping users will notice them, performance marketers aim for action. For a company selling things online, it means working with partners who get paid a small part of the sales.

This approach lets businesses be smarter: they can see which ads are working and which ones need a boost. They can also look at competitors to understand the existing scenario. So, if you're wondering where to put your ad money, performance marketing gives you the clues. It's all about actions, clicks, and sales.

What Makes Performance Marketing Unique

Performance marketing is different because it focuses on showing real results that you can measure.

Similarly, affiliate marketing centers on partnerships where affiliates earn commissions for driving sales, while programmatic marketing involves automated ad buying. What separates performance marketing from other strategies is its goal-oriented nature, as it concentrates on specific actions and real outcomes.

Let's take a look at the table that compares key aspects of Performance Marketing, Brand Marketing, Affiliate Marketing, and Programmatic Marketing.

Aspects of Performance Marketing, Brand Marketing, Affiliate Marketing, and Programmatic Marketing

Marketing Channels for Performance Marketing

Wondering which strategies work best in performance marketing? Well, there are five powerful tactics that agencies and advertisers use to bring in visitors effectively:

Tactic 1: Native Advertising

It is a type of advertising that matches the form and function of the platform where it's displayed. It's designed to blend in with the surrounding content and not appear as a traditional ad. Instead of standing out, native ads look like regular content on websites, social media, or other platforms, making them less disruptive to the user experience and often attract more clicks, improving CTR. They can appear as articles, videos, or even social media posts.

The real power of native advertising isn't in how hidden they are, but in how effectively they can grab attention. NYTimes didn't just add the ad to their newsfeed; they also made sure it caught people's attention.

Tactic 2: Social Media Advertising

Social media advertising is like a goldmine for performance marketers. It's a fantastic way to connect with users and guide them to your website. The great thing is that users can also share your promoted content naturally, spreading the word far and wide. While Facebook is a paradise for performance marketers, platforms such as LinkedIn, Instagram, and Twitter also open doors to connect with new customers.

US Social Network Ad Revenue Growtn

Tactic 3: Banner (Display) Ads

Chances are, you've seen lots of display ads while browsing the internet. They pop up on the side of your Facebook newsfeed or appear at the top or bottom of the web pages you visit. Even though display ads aren't as effective as before because of ad blockers and banner blindness, some companies are still doing well with them. They're getting creative with interactive content, videos, and captivating designs to catch your attention.

interactive content, videos, and captivating designs to catch your attention

Tactic 4: Search Engine Marketing (SEM)

Because people use search engines to find information online, having a website well-optimized for search engine marketing (SEM) is really important. In the world of performance marketing, the main thing we look at is cost per click (CPC), especially for ads you pay for. When it comes to natural or "organic" SEM, many performance marketers use content marketing and web pages that are super search engine-friendly to get great results.

Search Engine Marketing (SEM)

Tactic 5: Content Marketing

It's been found that content marketing activities cost way less than other types of marketing, but still get you three times more leads. With content marketing, the main thing is sharing useful information with people and making your brand fit naturally into their interests. For example, a company selling cameras could create detailed guides that help customers understand different types of cameras, their features, and how to choose the right one based on their needs. Content marketing can include blog posts, case studies, and even e-books.

Content Marketing

How Performance Marketing Works

The main difference between performance marketing and other types of marketing is that businesses pay when certain things happen. Here are the main goals that companies want to achieve with the help of performance marketing:

Brand Awareness

By reaching your desired audience with tailored content, you create memorable interactions. Consistency in messaging and design, along with engaging storytelling, enhances brand recognition. You can also collaborate with influencers, encourage interaction, and use retargeting strategies to further establish your brand in the minds of potential customers.

Metric used: Cost Per Click (CPC)

Generating Leads

To generate leads, create and offer valuable content like e-books or webinars in exchange for contact information. Design clear and compelling landing pages that encourage visitors to share their details.

Metric used: Cost Per Lead (CPL)

Purchases of Goods and Services

Sometimes, the goal is to sell things. Selling with performance marketing means using smart strategies, such as making ads that connect with what your customers want, looking at data to improve your methods, and finding what works best. Use clear ways for people to take action, make your website pages better, and give customers a smooth experience to boost sales.

Metric used: Cost per Order (CPO)

Application Download

If your company has an app, you can use performance marketing to get more people to download it. For example, you can offer special promotions or limited-time offers, collaborate with influencers, or optimize your listing on the app store.

Metric used: Cost Per Action (CPA)

Alternative Benchmarks

You can also look beyond traditional metrics like clicks and conversions to assess the real impact of marketing efforts. By looking at Customer Lifetime Value (LTV), Return on Ad Spend (ROAS), and engagement rates, businesses can get a deeper understanding of their marketing effectiveness.

With OWOX BI, you can get detailed metrics reporting to optimize various advertising campaigns across diverse channels. OWOX BI offers a holistic overview of your performance marketing efforts and will help you make informed decisions and improve the efficiency of your marketing strategies.

Benefits of Performance Marketing

Performance marketing offers several valuable benefits that can make a considerable impact on your business.

Trackable and Measurable

Performance marketing provides clear insights into your campaigns. Unlike traditional marketing methods where results can be vague, performance marketing allows you to track and measure specific actions taken by your audience, such as clicks, conversions, and purchases. With this approach, you will understand what's working and what's not, so you can make informed decisions. Track them in analytics, and visualise the results of your performance marketing campaign data to make informed decisions.

Optimize your performance marketing strategy today with analytics from OWOX BI


Expanded Advertising Reach

Reach a wider audience through targeted ads by adjusting your campaigns to specific demographics, interests, and behaviors, ensuring your message reaches those most likely to be interested in your products. For instance, you can use remarketing ads that follow the user across various websites and social media platforms. These ads remind them of the items they left in their cart, encouraging them to return and complete the purchase. You can also do A/B testing to understand what your audience likes and reach wider, similar people.

Generates Revenue

At the end of the day, every business wants to generate revenue. Whether it's a sale, a lead, or an app download, each action has a direct impact on your income. This means your marketing efforts are not just about creating awareness but also about producing tangible results.

Innovative Affiliate Contributions

Performance marketing often involves partnerships with affiliates who promote your products or services in exchange for a commission. These affiliates can range from influencers to bloggers, and their innovative contributions can introduce your brand to new audiences.

Limitations of Performance Marketing

Although performance marketing is effective, it also comes with certain limitations that businesses should be aware of:

Potential Overpayment

Paying per action may seem cost-effective, but if not carefully managed, it can lead to overspending. To overcome this, regularly monitor campaign metrics, analyze the value of each action, and adjust bids or budgets accordingly to ensure optimal spending.

Draining of Internal Resources

Managing campaigns across channels can be too much for a small company. However, you can tackle it with the help of marketing automation and collaborating with a specialized agency, which can give you time for strategic planning and growth.

Fraudulent Outcomes

Another challenge is the potential for fraudulent activities that artificially inflate performance metrics. For example, a third-party affiliate may engage in click fraud to earn higher commissions. To spot this, you can use a combination of fraud detection software and regular audits of affiliate activities.

Performance Marketing Analytics with OWOX BI

With OWOX Analytics, you can not only address campaign issues and reduce unnecessary spending but also enhance campaign performance. This tool allows you to optimize your marketing efforts by providing data blending with transformations, which will help you to combine data from various sources seamlessly. Additionally, OWOX Analytics offers omni-channel reports on a single dashboard, giving you a complete view of your marketing performance across different channels.

Ready to optimize your marketing performance?  Try OWOX analytics today!

Key Takeaways

  • Performance marketing focuses on measurable actions and outcomes, such as clicks, conversions, and sales, offering a results-driven approach to advertising.
  • This strategy ensures efficient spending, clear ROI, and accountability, making it a favored choice for businesses looking to maximize their marketing efforts.
  • Performance marketing can achieve brand awareness, lead generation, sales, and app downloads, each with its specific metrics.

Start optimizing your campaigns with OWOX BI and take control of your marketing ROI



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  • Should I implement a performance marketing plan?

    Implementing a performance marketing plan can improve your marketing by focusing on results and optimizing campaigns for maximum returns.
  • What Is the role of performance marketing?

    The role of performance marketing is to drive specific actions and measurable outcomes, such as clicks, conversions, and sales, using targeted advertising strategies.
  • What are the benefits of performance-based marketing?

    The benefits of performance-based marketing include reduced risk, targeted advertising, better control over spending, and motivated partners working towards successful campaigns.

icon Get in-depth insights

18 digital marketing metrics and KPIs you should know

icon Get in-depth insights

18 digital marketing metrics and KPIs you should know