Performance Marketing, How to get started: A comprehensive guide

Are you tired of paying for campaigns that promise more than they deliver? We understand how it feels to try and lose money on efforts... But we have the solution for you and it's performance marketing.

It's a method that has become very popular in recent times. 

Imagine that now you have the possibility to pay only for the results of your ads and think about how much you can save if you start taking advantage of these strategies. 

Forget about wasting money for no reason, it's time to optimize your budget to the fullest.

Let's take a look at the details below:

What is performance marketing?

Performance marketing is a method where the advertiser pays only for the results obtained by the campaign. These numbers are 100% measurable and quantifiable. 

Both parties, the brand and the advertiser, sign an agreement in which they establish the details of the contract. This specifies what results are expected and the amount that will be paid if they are obtained.

The results can be:

• A subscription.

• New lead.

• Interaction with the content. 

• New sale.

Therefore, performance marketing can be used to reduce the uncertainty that exists in most advertising campaigns, where you pay for clicks that do not guarantee any result. 

Advantages of performance marketing that you should know about 

There are many advantages offered by performance marketing. Some of them are:

1. Conversion-based goals

First of all, the goals you set will be based on conversion, which makes everything else easier.

In other methods, the goals depend on the number of clicks the ad gets, something very difficult to measure or project.

Forget about this uncertainty and opt for performance marketing. Your peace of mind will be assured.

2. It's easier to measure the return on investment

Of course, since there are concrete objectives, you will have an approximate idea of how much the return on investment will be and how much you will achieve. 

Imagine that you establish the agreement based on the number of leads. Well, you can forecast the amount you need to obtain new sales. 

3. Further optimization

Optimization in performance marketing is much easier than in other methods. Why? Simple, because you will know exactly what works and what doesn't, so you can adjust the strategy at any time.

Controls will be much tighter because there are programs that reflect metrics in real time, so you won't waste more time than necessary. 

4. More efficient budgeting

With this tool you will be able to create a much more efficient budget, since at the end of the day you will only pay for the results obtained by the campaign. 

Money losses will be drastically reduced and you'll be able to focus your resources in a different way to increase sales and loyalty.

How to apply performance marketing

There's no magic formula for applying performance marketing in your business. However, we can give you some tips based on our experience so that you can put them into practice as soon as possible

1. Define well the objectives and indicators

It's essential that you define very well the objectives you're going to pursue. It's not enough to write them down, they must be quantifiable and measurable to detect how far you are from achieving them. 

Make a list of all the goals you want to achieve through the campaign. Then choose some metrics that will help you optimize the results of the strategy. Then, with a little patience, you'll see how the numbers start coming in.

2. Constant follow-up

Closely linked to the previous point, but we can't find ways to explain the importance of follow-up in digital marketing.

It's essential that you monitor each of the numbers you get to determine whether or not they match the projections you made. 

This way you'll be able to make the changes you consider necessary before it's too late. 

3. Relationship between company and advertiser

The relationship between company and advertiser should be as close as possible. We recommend that you put everything in writing so that there's total transparency at all times.

The stakes are high, so it's time to put your trust in the company so you can get the results you want.

Reasons to apply performance marketing in your company

Still have doubts? Let's take a look at some of the reasons why you should consider performance marketing as an option for your business:

1. Unstoppable growth

Many experts point out that it's one of the fastest growing segments of online advertising today. 

The truth is that we're not surprised, because it's one of the few methods that allows you to pay only when you get results, never the other way around. Try it and you'll see what we're talking about.

2. Exponential return

What we love most about performance marketing is its return on investment. 

Some numbers indicate that for every 1 USD invested you get 11 USD profit. Note: this will depend on the campaign itself, strategies used, market segment and much more. 

However, it's exciting to enter a segment where you have the possibility of earning ten times more than what you invested, isn't it? 

3. Highly recommended

More than 93% of the companies in the U.S. that have hired a performance marketing agency recommend this service. (formato cita)

Thanks to this strategy they've managed to improve their conversions and they obtained new customers that improved the company's numbers.

That's why we could say that it's unlikely that you have a bad experience with this tool. It's just a matter of choosing the right agency and you'll see how everything starts to work. 

4. Artificial Intelligence

Artificial intelligence is a branch that has gradually reached every corner of marketing, including performance marketing.

This technology is already being applied to know the return of each campaign and to be able to adjust strategies to improve the numbers in a specific period of time. 

It's time for you to opt for performance marketing so that you can leave aside the promises per clicks that other campaigns offer you. 

Optimize your resources and take your business to the next level!

Check out the other articles on our blog and find out how you can build a digital marketing strategy from scratch. 

Read them and let us know what your doubts are, of course, in the comments box.