The internet has irrevocably altered the way customers search and purchase products. And it is no secret that this shift caused enterprises worldwide to embark on an innovative trail to advertise and sell their goods and services.
Data transparency today allows marketers to tweak their strategies and collect data to a certain extent and enables performance marketing to drive more actions, tracks, and measures. It has become a consumer’s journey- from the target audience to becoming loyal customers.
This article will give you an overall understanding of performance marketing strategy and stimulate you to craft a scalable performance marketing strategy to acquire more traffic, and eventually customers.
Types of Performance Marketing Campaigns
Many large organizations spend millions of dollars on marketing. However, you can achieve the same results by dwelling on the bottom line to be successful. And that is reaching the right people at the right time through efficient performance marketing campaigns.
There are two types of performance marketing campaigns you can turn to gain more customers:
1. Push Marketing Campaign
Push marketing is where you push your brand in front of the targeted audience through paid advertising. Push marketing strategies can vary based on the brand’s current marketing objective.
When comes to push marketing, Facebook plays a major role that helps new brands to showcase their products to its prospects and it is an inexpensive alternative to Google. It charges in CPM (Cost per 1000 impressions), making it pocket-friendly. Facebook identifies customer affinity over a course of time and enables new D2C brands and Ecommerce to showcase their products to its targeted audience.
However, there is a downside. Facebook does not know the exact customer to target. With the iOS 14 update, Apple devices don’t allow any third-party cookies due to their user-privacy concerns. Hence, we are unable to target iOS devices particularly. Since we are unable to target iOS device users, this poses a threat to Facebook’s algorithm.
2. Pull Marketing Campaign
In Pull marketing, your target audience is aware of the problem and is searching for a solution. As a result, your goal is to lure in potential customers when they explore options. Here, users emphasize more on product pre-purchase and search for more details.
Google Search is a perfect platform to attract customers who are at the bottom of the sales funnel as they specifically search for solutions depending on their phase in the sales funnel. For instance,
- Awareness phase: Consumer searches a problem as a query implying they are unaware of your product.
- Consideration phase: Customers compare products as a query to decide on buying which product.
- Conversion phase: The customer searches for your product name and details as a query.
Further, you must remember to work on brand awareness and prospecting advertisements simultaneously to yield maximum ROAS as you have to make your target audience aware of your brand before they purchase from your competitor. This is where push marketing comes in.
Types of Prospecting
Prospecting enables you to take your brand to your targeted audience. There are two types of prospecting strategies:
Traditional prospecting uses static Ad creatives to acquire or retain existing traffic. You advertise your product to new customers who have previously used or visited your website and made some activity. It helps in improving customer engagement and retention but is not as conversion-centric as dynamic prospecting.
Dynamic prospecting refers to advertisements that dynamically pull product from an Ecommerce for promotion. It’s effective for retargetting campaigns as it directly shows the product that the prospect saw earlier on the brand’s website intending to ramp up the conversion. It is more of a conversion-centric type of prospecting.
How to develop a Performance Marketing Strategy?
Performance marketing is where you pay only whenever the chosen action is made, whether it be a sale, lead, or click. There is no single or perfect way to strategize performance marketing for all the brands at once, given so many campaigns and channels available. But gearing up the performance marketing strategy will be easier when you follow the primary tricks in the beginning.
Moreover, increasing brand awareness will gradually reduce CAC (Customer Acquisition Cost). You need an accurate and reliable platform for tracking conversion. But why do we insist? Because your website might record only the converted customers and leave the visitors that have taken other activities like exhibiting interest in a specific product or adding products to the cart.
As a result, you will unknowingly overlook the potential customer and only receive data on converted customers of your brand. Therefore, you must set the conversion tracking correctly and precisely so that the campaign optimizes efficiently.
Your brand’s ROAS (Return on Ad Spend) and ROI (Return on Investment) will significantly increase once you meticulously walk through all the basics mentioned. With everything in your favor, only one thing remains- budget planning. Now, if the budget is all that restricts you from enhancing the strategy, worry not! You can read our previous blog to learn the best time to enter performance marketing with your D2C brand!
Or even better! We’re here to do apply these to your brand and to show you in firsthand.