With the aim of helping businesses capture “where does the advertising money go”, Performance Marketing has become a popular trend in the world marketing market in general and in Vietnam in particular. However, not all marketers correctly understand this type of performance-based marketing.
1. Performance Marketing is only possible on Digital platform
Born after the explosion of the digital era, Performance Marketing is invisible to the digital channels. In fact, Performance Marketing can be done on a variety of channels, including traditional channels such as TV, OOH, newspapers, … to modern channels. The most important thing is that businesses must correctly define the performance evaluation criteria for each implementation channel.
2. Performance Marketing is order-oriented
One of the most prominent features of Performance Marketing is the collection of Leads / Sales / Conversions, but that is not all. Performance Marketing can be widely applied, even in branding activities of businesses.
3. Marketing Performance saves the business
This is one of the biggest misunderstandings of marketers with Performance Marketing. To create the success of a campaign or the name of a business requires a lot of factors such as product quality, well-trained staff, … and Performance Marketing is only part of it.
4. Make Performance Marketing separate from Branding activities
Branding must always go hand in hand with advertising activities to optimize the efficiency of resources. The branding message separated from the message of advertising products/services will easily confuse customers, cause loss of advertising effectiveness, and cost for businesses.
5. Only big budgets can do Performance Marketing
This misunderstanding makes many Clients and Agency hesitate to perform Performance Marketing activities and ignore many expensive opportunities. In fact, a small budget can do a good job Marketing. However, with a small budget, businesses have to accept a small sample size and longer run times, which in turn makes optimization slower compared to a large budget.
So how does Performance Marketing understand correctly?
Performance Marketing, as the name suggests, is performance-based marketing. Businesses only pay for advertising when customers complete a specific action. These actions are usually filling information, registering to follow, buying, …
Performance Marketing‘s Applications
A corporate communication campaign usually consists of 5 main stages: Implementing a brand, increasing engagement, attracting visits to a website, increasing conversion and sales. Each stage of the campaign needs to be implemented effectively and needs different KPIs to match the goals of each campaign. Performance marketing applications help businesses accurately measure the effectiveness of each communication campaign stage.
With the stage of Brand Communication, businesses want to increase brand awareness among the consumer community. Instead of just showing Impressions showing impressions, Performance Marketing with CTR% provides more information about consumer interactions with brand ads, helping businesses optimize their advertising activities. and attracting more interest.
In the stage of increasing engagement, Performance Marketing provides CTR% and CPC, allowing businesses to optimize costs for each consumer interaction with their advertising activities.
Coming to the stage of Attracting website visits, businesses may be interested in CTR%, CPC, Bounce Rate or CR%. Application Performance Marketing in this period not only helps businesses pull visitors to the website, but also supports increasing conversion rates, increasing efficiency for visits.
In the Conversion Rate Increase phase, Performance Marketing deals with the story of higher conversion rates, minimal cost per customer action and, broader, the costs of revenue-generating marketing.
Finally, in the Sales stage, Performance Marketing can be a useful solution for the task of increasing the volume of orders that businesses have always wanted. CIR%, ROI and order volume are the indicators that businesses need to pay special attention to at this stage.
Performance Marketing has really become a trend with outstanding advantages, meeting the needs and expectations of many businesses for a form of marketing that brings clear and effective effectiveness. In order to take full advantage of this form, marketers always need to correctly and fully understand Performance Marketing.
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