Performance Marketing: What you need to know

As digital marketing grows, more frontiers are opened for exploration within the field that was either not feasible or downright impossible in the past. With the growth of technology, we are finding new ways to apply this growth to digital marketing. These conditions are giving rise to new concepts and fields. One of these is performance marketing.

What is performance marketing?

Data transparency now enables marketers to optimize their campaigns in real-time, based on new data coming in, allowing them to perform better. Performance marketing is the term for digital marketing campaigns where the advertisers only pay marketers for specific results achieved. 

How is it different?

Unlike traditional marketing, performance marketing is usually focused on driving a specific action or group of actions from the target, and success is usually measured strictly on the number of users who have performed the range of actions agreed upon. This type of marketing finds specific use cases among small organizations that cannot afford a million-dollar budget for branding or more generic awareness campaigns. Smaller advertisers need to focus on the bottom line to remain profitable. The advertiser can determine the action to market for, and pay when that action has been taken a number of times. 

How is ROI measured? 

Actions (such as clicks or conversions) are agreed and KPIs are pre-determined between the advertiser and the performance marketing agency before the campaign commences. With the launch, activity is measured against these predetermined KPIs, and payment is made based on the results.  

Who offers this in Africa?

We offer performance marketing services, where our clients only pay for specific results achieved, such as clicks or conversions. We offer these performance marketing services because of the strong engagement index we have with our native digital communities and networks as well as the experience and expertise of our strategists, allowing us to confidently craft campaigns that guarantee the right response from our audiences.

Conclusion

As technology grows, and marketing leverages technology to optimize some of its activities, marketers can get closer and closer to the end-user, and are able to offer more personalized value both to the end-user and better ROI to advertisers.

To know more about our services and how you can reach us, visit our services page.