The terms 'performance marketing and digital marketing' are floating around more often than before. In this endeavour, a large number of brands worldwide are exploring digital solutions and processes. As per Globe Newswire, the global digital advertising and marketing sector will surpass $780 billion by 2026. It’s no surprise that innovation is vital to online marketing for a brand’s success. To remain competitive, you need to adapt and adopt digital technology in your marketing strategies.
More often than not, performance marketing and digital marketing are used together or interchangeably. However, these terms are significantly different.
Digital marketing- An Overview
The utilisation of digital channels to market products and services to connect with their target group is digital marketing. It is also known as online or internet marketing.
It involves promoting brands through the internet and other types of digital communication. For example, social media, mobile apps, blog posts, websites, emails, etc.
Performance Marketing- In a Nutshell
A results-centric digital marketing strategy focusing on achieving concrete key performance indicators (KPIs) with regards to ROI and brand growth is performance marketing. It is also known as performance media marketing or digital performance marketing.
It consists of creating digital campaigns to achieve those goals. For example, number of clicks, product reviews, leads, sales, etc.
Performance Marketing vs Digital Marketing
The difference between the two lies in their approach, and what suits your brand best.
Comprises channels and strategies
Comprises optimising these channels and strategies
Focuses on long-term goals and results, like engagement or awareness
Focuses on short-term goals and KPIs, like driving revenue and retention
Uses a variety of payment models
Uses payment model that only requires customer payment after achieving desired outcome
The ideal approach for a brand to design its web content should be on the basis of its marketing and business goals, and culture. Here’s a list of potential benefits of performance marketing to help you decide better.
Performance Marketing Benefits
Brands can use performance marketing to:
Experience Real-time ROI Measurements
Easy to track and measure your results at any given moment. You’ll also learn how much you’re financially responsible for when it comes to paying for your performance marketing campaign.
Pay as you go
Every time your designated outcome occurs, performance marketers will charge your brand accordingly, rather than paying an upfront cost for your service. It’s a friendly choice for small and medium businesses with smaller budgets.
Measure and Track with Transparency
Easy for brands to choose appropriate marketing channels and make investment avenues.
Fit across Different Marketing Channels
Enables brands to adopt a marketing strategy, and explore data sources for a detailed overview of their campaign’s performance. Results can then be used to improve marketing plans.
Strategise for Speedy, Visible Results
Excellent for brands aiming to achieve their desired results in a limited period of time
Our Th3oretical Approach
Your search for a sustainable marketing strategy ends with performance marketing, courtesy of its results-driven nature. It is a great option to accomplish brand objectives. No matter your brand’s positioning in the performance marketing arena, there is always a scope for growth.
How does performance marketing work?
Outline your goals clearly
Select a preferred marketing channel to target
Track, measure and optimize the performance
Choose to continue or to change as per outcomes
With the right performance marketing channel, brands can efficiently reach out to their target audience.
If you are looking for a reliable performance marketing agency that has delivered real business ROI, quality leads and increased reach via customised digital marketing strategies, then you need to look no further than Brand Th3ory! We help create a long-term road map for your brand’s growth. You’ll also work one-on-one with a dedicated team of marketers that invest themselves into your success today and tomorrow, making a significant impact on your brand’s future.
One of the new approaches to online marketing is performance marketing, also called performance media marketing or digital performance marketing. Learn more about marketing your brand online here. Plus, get insight into the benefits of performance marketing and how it can affect your brand’s long-term success and profitability.
Digital marketing channels like paid search, social, and display ads are part of a successful performance marketing strategy, but traditional digital marketing often focuses on vanity metrics, like reach, impressions, or likes.
Difference in approach
Performance Marketing Strategy
Focuses on long-term, strategic key performance indicators (KPIs). This means a focus on driving revenue and retention
Digital marketing channels like paid search, social, and display ads
Traditional Digital Marketing
Focuses on engagement or awareness
Vanity metrics like reach, impressions, and likes
Social Media- a haven for performance marketers
Despite gloom and doom, Facebook remains the most used platform by marketers worldwide (93%), Instagram (78%)
As of January 2022, there are 3.96 billion total social media users across all platforms
An average person bounces between 7 different social networks per month.
Social Media- a sanctuary for performance marketers
Allows you to reach users & drive them to your website
Users naturally share your sponsored content, extending your reach
Putting Power Back in Your Hands with Performance Marketing
Performance Marketing: The new age marketing
How to Make Your Brand Perform Better
Optimize for KPIs
Adaptability & flexibility across channels
Discovering newer formats
How to Build a Performance Marketing Strategy for Your Brand
Establishing your campaign goal
Choosing your digital channel (s)
Creating & launching campaign
Measuring & optimizing your campaign
Handling potential pitfalls