But before we get ahead of ourselves, what is performance-based marketing in the first place
? Well, according to the Performance Marketing Association, this strategy sees marketers or advertisers getting paid only once the desired targets have been met
Performance marketing can be useful in a business context because it helps to hold everyone accountable
. By defining clear deliverables for affiliates, businesses are able to build trust and grow brand awareness, all while minimising risk.
Here, media update
’s Taylor Goodman discusses three prominent benefits of performance marketing.Let’s get into it:
1. Performance marketing helps you know what you’re paying for
Easily the biggest benefit of performance-based marketing is how it minimises risk for brands. This is because clients know exactly where their money is going.
Gone are the days of being met with inconclusive results, exaggerated invoices and still feeling unsure as to whether you’re getting any ROI. Now you can see that the proof really is in the pudding!
With performance marketing, you only pay when you get your desired results. Sounds like a win
2. Performance marketing is measurable
We’ve covered that performance marketing helps brands know what they’re paying for, but it is also measurable
This eliminates all ambiguity on the brands part, as they are able to track the marketer’s / affiliate’s progress every
step of the way. This process fosters transparency, which can help boost trust in the partnership.
Additionally, performance marketing tactics that provide a sense of measurability is a plus for brands and marketers alike. Why? Well
, it enables the marketer or advertiser to prove their worth and it minimises risk on the business’ side.
For example, let’s say a brand wants to expand its content marketing strategies and the marketer suggests incorporating video because they think that this will increase conversion rates.
Once the video campaign has been implemented, the brand can then track the performance of the content and how many clicks it is generating. This will ensure that it is delivering what the marketer promised.
Whether you’re using a social platform’s analysis tool or trying a social media auditing tool
is trackable and this helps hold everyone accountable.
With this being said, tracking performance can increase productivity as it inspires the affiliates to go the extra mile to meet their targets.
3. Performance marketing boosts morale
Although performance marketing is thought to predominantly benefit businesses, it can aid the marketer as well.
This is because having proof that you’re completing the necessary tasks will help you to prove how valuable you are to the business you work for.
Subsequently, the marketer will feel more confident in their offering and capabilities. Additionally, as your efforts are being tracked, managers will be able to easily identify those that are exceeding expectations and reward them accordingly.
Incentivising employees for doing good work can boost morale and productivity
. After all, we all like hearing what a great job we’re doing!
Lastly, by integrating performance marketing into your business operations it is likely that you will see an increase in innovation
in your marketing team.
This is due to the team needing to do anything and everything
to ensure they meet their targets, so they can get creative in how they do so. Would you integrate performance marketing tactics into your business? Why or why not? Be sure to let us know in the comments section below.
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For more on the basics of performance marketing, be sure to check out What is performance marketing?
*Image courtesy of Unsplash