Performance Marketing: What is it and How does it Work?
Posted: Thu Feb 20, 2025 10:42 am
Until recently, the ability to accurately determine what interested the user, how long he looked at a particular product, what keyword in the advert he used to go to the site and place an order seemed like something from the realm of fantasy. Today, it is our reality.
Despite the many different technologies that allow us to accurately determine whether an advertising channel will work or not and what the return will be, many continue to distribute budgets based on the principle of "let's see what the payoff will be." Moreover, the result is assessed for each tool separately. From SEO, they expect stable traffic to the site and an increase in positions in the search results, from context - "fast" traffic, from social networks - a loyal audience.
But how do these advertising channels influence each italy cell phone number list other? And how does the result of marketing activities affect the ultimate goal of the business - sales and profit? Performance marketing helps to answer these questions.
What is performance marketing
This is an internet marketing concept that aims to achieve specific, measurable business results (KPI) in the shortest possible time. Simply put, when you start spending your budget rationally and counting everything.
Let's take, for example, a company engaged in suburban real estate. Over 7 years on the market, it has successfully built 69 cottage villages, sold about 10,000 plots, with a sales conversion rate of 14%. Everything seems fine, there are clients, but the managers wanted to increase the conversion rate to 20%, and for the cost of an application to be no more than 2,000 rubles. To solve this problem, they turned to strategists and analysts.
— Comrades, why do you spend so much money on contextual advertising? It produces less return than profit. And the forms on your site are inconvenient, there are too many fields to fill out, the functionality for searching for sites is confusing... You should connect a comprehensive strategy.
Despite the many different technologies that allow us to accurately determine whether an advertising channel will work or not and what the return will be, many continue to distribute budgets based on the principle of "let's see what the payoff will be." Moreover, the result is assessed for each tool separately. From SEO, they expect stable traffic to the site and an increase in positions in the search results, from context - "fast" traffic, from social networks - a loyal audience.
But how do these advertising channels influence each italy cell phone number list other? And how does the result of marketing activities affect the ultimate goal of the business - sales and profit? Performance marketing helps to answer these questions.
What is performance marketing
This is an internet marketing concept that aims to achieve specific, measurable business results (KPI) in the shortest possible time. Simply put, when you start spending your budget rationally and counting everything.
Let's take, for example, a company engaged in suburban real estate. Over 7 years on the market, it has successfully built 69 cottage villages, sold about 10,000 plots, with a sales conversion rate of 14%. Everything seems fine, there are clients, but the managers wanted to increase the conversion rate to 20%, and for the cost of an application to be no more than 2,000 rubles. To solve this problem, they turned to strategists and analysts.
— Comrades, why do you spend so much money on contextual advertising? It produces less return than profit. And the forms on your site are inconvenient, there are too many fields to fill out, the functionality for searching for sites is confusing... You should connect a comprehensive strategy.