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Performance Marketing and How it Works

There are different types of Digital Marketing strategies adopted by companies to build their online presence. One of the most important forms of digital marketing is Performance Marketing.

Simply put, Performance Marketing is a form of digital marketing that is result-oriented. This implies that companies only pay the advertising agency once their business objectives are accomplished. So, Performance marketing is a good option for brands that are trying to reach their target audience through actual results.

Performance marketing usually works when a company’s marketing team interacts with an external Ad agency or publisher to drive an audience. The external advertising source is responsible for designing and placing the brand advertisement on numerous performance marketing channels such as social media, search engines, etc.

In performance marketing, the payment to the external agency is done when the desired results are acquired. The results are analyzed based on clicks, shares, impressions, or product purchases by the users.

Reliable Performance Marketing Channels

There are five most reliable forms of Performance marketing channels utilized by marketing agencies to drive traffic-

  1. Display Ads: You must have noticed the different Ads displayed on any webpage that you visit. Those Ads are called Display Ads that are sponsored to drive more traffic to the website.  
  2. Native Advertising: It refers to the natural appearance of sponsored content on various websites or e-commerce sites. For example, when watching a YouTube video you come across videos recommended for you. These are the sponsored content used to drive more audiences to a particular webpage. Native advertising allows your company to promote its brand naturally.
  3. Content Marketing: Content marketing is an extremely crucial yet cost-saving performance marketing strategy to kick-start your marketing journey. Any form of relevant content such as blog posts, videos, e-books, or case studies puts your brand in limelight. If the content you post is informative, then the chances of getting a great deal of audience to land on your website increase.
  4. Search Engine Marketing: To achieve success, you must ensure that your website is optimized for SEM. It is significant because most of the online search is done through various search engines. Talking in the context of Performance Marketing, the main focus is on Cost per click for paid Ads. For organic SEM, the performance marketers focus on content marketing and SEO.
  5. Social Media: Social media has become an inevitable part of our lives. It offers businesses to reach a large number of users and drive them to your website via online means. Similarly, the users can also help you promote your brand among a wider audience by forwarding your content further. Facebook, LinkedIn, Instagram, and Twitter handle are a few of the many social media platforms Performance Marketers can utilize.

With the growing popularity of Digital marketing among users and businesses, Performance Marketing cannot be ignored. Availing of the different performance marketing channels can assist you in effectively reaching your business goals without breaking the bank.

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