CPM ( cost per mille ) settlement occurs when the ad is displayed to a thousand users. It is a payment for the total number of views.
CPV ( cost per view ) settlement based on the video watched for a specified number of seconds, mainly used in video advertising.
CPL ( cost per lead ) settlement based on acquiring a sales lead, e.g. registering on a website, subscribing to a newsletter.
CPS ( cost per sale ) the cost charged for the purchase at the time of the transaction. Settlement used in tools such as affiliate programs.
CPA ( cost per action ) settlement takes place when the user is redirected to the website/landing page and when the user performs the expected action, e.g. registering on the website, subscribing to the newsletter.
In what channels is performance marketing used?
Google Ads
Advertisements that are appropriately selected and tailored to the commercial or service offer of a given company, accurately reach the user at the right time and place. There are many possibilities: graphic ads (Google Display Network), ads in the Google search engine, remarketing, ads on YouTube, campaigns in Google Shopping.
Social media marketing
Advertising in social media (Facebook, Instagram, LinkedIn) are campaigns that build relationships, bonds, and are used to communicate with a specific group of recipients. Marketing activities in these channels of reaching out are aimed at redirecting users to the home page, blog, product categories, and consist of promoting a given post, an entire profile with products or services they offer.
Email Marketing
These are welcome and information messages, newsletters, sales mailings, thank-yous, event announcements and promotional campaigns that influence further consumer decisions, build relationships and brand loyalty.
Affiliate Marketing
Affiliate programs are programs in which an intermediary (affiliate, influencer), e.g. on their website, social profile, blog, YouTube channel or during a podcast, places an advertising link to the advertiser's/seller's website - promotes it and encourages recipients to take a specific action (this may be a purchase or downloading a file).
Mobile marketing
Examples include mobile applications that facilitate access to truemoney database products, push notifications, text messages, and QR codes that provide information about promotions.
Examples of channels for reaching performance marketing
Examples of channels for reaching performance marketing
How can performance marketing improve the effectiveness of your business?
Control. In the case of performance marketing, regular control of the advertising campaign is a must. Control and analysis of indicators, elements of the advertising campaign and the advertising budget are essential to transform investments into measurable results.
Adjustment of activities. Correctly established and interpreted KPIs (key performance indicators) help to achieve the intended goals. Based on the data, results can be precisely monitored and subsequent marketing activities can be optimally adjusted.
Analysis of campaign elements. Data analysis allows you to identify the most effective and efficient campaign elements, such as target groups, ad content, graphics, display schedule. This allows you to know what activities to focus on to maintain the appropriate level or achieve even better results.
Budget allocation. Performance marketing activities allow for precise budget tracking and its appropriate allocation. You can precisely determine which channels, advertising campaigns and advertisements are the most profitable and focus only the appropriate part on them. In this way, we minimize the waste of funds and their inappropriate allocation.
Payment based on results. In order to minimize risk in performance marketing activities, we have payment based on results, i.e. payment for specific actions and when the intended goals are achieved.
Precise targeting. Performance marketing based on online behavior, demographic data, user preferences enables precise targeting of ads and campaigns. Matching the advertising message to the appropriate target group increases the chances of conversion.
Scalability. Scalability of actions is easier to apply in performance marketing activities. We can react to changes quickly, quickly test different approaches and solutions, we can experiment and optimize performance marketing campaigns in real time.
Summary:
Performance marketing is marketing focused on the effect, which depends largely on the goal that will be set, therefore, when choosing the type of campaign and the channel of reaching, it is necessary to bear in mind the main goal that the company wants to achieve and the micro goals that it wants to implement. It is worth properly matching the advertisement to the user - users click when the advertisement fits them, and the advertising budget should be used in such a way as to obtain the lowest possible cost per click. Measuring, analyzing and verifying the established KPI indicators and immediate optimization of activities have a real impact on the effect of the activities.
