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Performance Marketing Agency: A Beginner's Guide

Category : Digital Marketing Author : Team Amura Date : 23 Mar 2022

Digital marketing has become a crucial part of businesses of all sizes, with a worldwide expenditure on digital advertising surpassing 378 billion US dollars in 2020. The statistic shows that companies have started to understand the value of investing in digital advertising.

However, when it comes to marketing, it's important to spend wisely to get optimum results. Therefore, a smart way to approach marketing is by opting for performance marketing.

Performance marketing refers to online advertising programs driven by performance or results. The companies pay their marketing affiliates only when specific actions are fulfilled. It can be a new lead, click, impression, or sale.

Performance marketing tactics have impacted the way businesses advertise and engage with their customers. Read on to learn more about performance marketing agencies, how they work, and the various channels used in performance marketing.

How is a Performance Marketing Agency Different from Digital Agencies?

How is a Performance Marketing Agency Different from Digital Agencies?
How is a Performance Marketing Agency Different from Digital Agencies?

The payment model of a digital performance marketing agency distinguishes it from other agencies. Instead of charging a fixed sum upfront, the agencies charge money based on results. The result could be sales, leads, or any other metric decided between the agency and the clients. By charging only after their successful services, a performance marketing agency guarantees you a return on your investment. Further, you can also track your ROI with each click. It lets you see where your money is flowing and how it's helping your business. With this, you can limit your spending to marketing tactics that actually work for you.

Channels Used in Performance Marketing

Performance marketing can involve using different digital marketing and advertising channels to get the desired result. The choice of the channels ultimately boils down to your business's goals and focus. Here are a few of them:

Display Ads

Display Ads
Display Ads

Display ads are ubiquitous online, and you've probably witnessed many of them. They include banners and other visual advertisements displayed on your customer's most visited websites, such as a news webpage or a Facebook news feed. These advertisements usually link to a landing page where users can convert into leads or customers.

Though ad blockers and banner blindness are decreasing the popularity of display ads, some businesses are still finding success through targeted banner ads with interactive content, videos, and graphic designs.

Under performance marketing, you will need to pay your marketers when someone clicks on your ad, converts it into a lead, or takes other definitive actions.

Affiliate Marketing

Affiliate Marketing
Affiliate Marketing

Affiliate marketing is one of the most popular ways of performance marketing. In this type of marketing, businesses reward one or more affiliates for each visitor or customer they bring in through their marketing efforts.

An affiliate promotes your product or services by linking them to their content or placing ads on their websites. They then receive a commission for every click, lead, or sale generated through those ads.

For instance, if you sell organic food products, a blogger or YouTuber whose content revolves around leading a healthy lifestyle can be your affiliate. Your products can reach a wider audience through their recommendation. On the other hand, they could make some passive income in the form of commission if their advertisement increases the sales of your product.

Native Advertising

Native Advertising
Native Advertising

If you've read articles in a magazine only to notice in the end that a retailer sponsored it, that's a native advertisement for you. Native advertisements, also called sponsored content, tend to follow the natural form and function of the site they are placed. Unlike display ads, they blend into the native content on the platform so much that readers often fail to recognize them as ads immediately.

Native advertisements work by organically promoting your product through their seamless advertising. Pay per impression and pay per click are the most common payment methods for this performance marketing channel.

Social Media Marketing

Social Media Marketing
Social Media Marketing

Social media is a great place to gain traffic and improve brand awareness. It offers many ad formats, targeting options, and payment models.

Platforms such as Facebook, LinkedIn, Instagram, and Twitter offer many opportunities and tools for performance marketers to reach new customers. Moreover, users can organically re-share your sponsored content, extending your reach.

Search Engine Advertising

Search Engine Advertising
Search Engine Advertising

Since most online sales begin with a search, search engine ads are excellent for increasing online visibility. You reach your potential customers by displaying ads when they enter search terms on search engines such as Google.

In performance marketing, these ads can be used in two ways- paid or organic advertisements. You generally pay your marketing agency for every click on your ad with paid search marketing. However, for organic advertisements, marketers generally rely on SEO-optimized content and landing pages to increase the search engine ranks

Conclusion

Performance marketing has become a gold standard in the world of marketing. Thus, it would be more prudent to choose performance marketing over other marketing services. Amura Marketing Technologies is the ideal performance marketing agency for your business to expand your clientele and reach your target goals.

Amura focuses on the right customers to drive higher value for your marketing with a data-driven marketing approach. Moreover, it has the best blend of technology and marketing to give you the long-term marketing success that you desire. So if you're looking for a performance marketing agency in Mumbai, Amura Marketing Technologies is the right place to enquire.

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