Just a couple of years ago, companies spent money on advertising and received traffic, applications or sales in return. Today, you can set various business indicators as KPIs: order price, share of advertising costs, ROAS or ROI, etc. Thanks to the development of analytical tools, you can calculate the source of leads right down to the banner and calculate the cost of each client. What is performance in online advertising: a strategy for business growth.
In this article, we will tell you what is needed to move to performance marketing, how to develop an effective strategy and what results it can bring.
What is performance marketing
In the era of offline advertising, businesses paid for contact with a hypothetical audience. An advertiser could buy, for example, a billboard that an average of 30 thousand drivers pass by per month. How many drivers will pass in a particular month, how many of them are in the target audience, how many will pay attention to the advertisement – one could only guess. The situation is well characterized by a well-known aphorism: “Half the money you spend on advertising is wasted. The problem is that you don’t know which half.” What is performance in online advertising: a strategy for business growth.
Online advertising has changed the rules of the game. Advertisers are now able to pay not for a hypothetical, but for a real audience. When you place a banner on the main page of Yandex, you know exactly how many people saw it and how many belarus phone number library clicked on it. The emergence of advertising formats with payment for the target action allowed us to take the next step. The effectiveness of campaigns began to be assessed not by audience coverage, but by changes in its behavior, expressed in applications, calls and other actions.
Performance strategy
We managed to increase the here are some tips for success number of orders by 23% while maintaining the volume of invested funds. We did this with the help of new advertising channels and formats at several stages of the sales funnel. In addition to the contextual ads that HomeMe used earlier, we launched media and targeted tg data advertising. These channels “warmed up” users who wanted to buy furniture, but were not yet ready to buy. Then we launched contextual advertising for the same audience. This way, we increased the reach of advertising campaigns and brought a new audience to order.
In order to determine effective channels, you need to create a performance strategy. It will help to link all the tools into a single system and distribute them along the sales funnel. The combination of channels and tools in each specific case is individual, since it depends on the goal, market characteristics and the advertiser.
Selection of tools
At the second stage of the funnel, users show interest in the product or service. This is where the tools for working with “hot demand” come into play: contextual advertising, targeted advertising on social networks, search engine optimization. In an ideal situation, it is at this stage that potential buyers turn into real ones – they leave requests, call or place an order.
Marketing tools at different stages of the sales funnel
Those who did not convert find themselves at the stage of making a purchase decision. The main tool here is remarketing, which allows you to once again reach out to the audience that has already seen the ad and visited the site. Such campaigns are especially important if the advertiser offers products with a long shelf life