What is Performance Marketing?
In November 2021, Google announced that it was replacing Local Campaigns and Smart Shopping with Performance Max. Google explains the new program as a way for “performance advertisers” to access all their ad inventory from a single campaign. Wait a minute, what is performance marketing and advertising? If your eCommerce store ventured outside social media or email marketing, the first stop would probably be Google Ads, the most popular performance marketing platform.
In fiscal year 2021, Google advertising saw a remarkable growth of 42.5% year over year compared to 2020. What makes Google Ads so popular? The answer lies in the core of performance marketing. Launched in 2000, the platform provides advertisers with a way to measure ROI through clicks and conversions. Today, the language of advertising revolves around a few key metrics, regardless of the platform: CPM, CPC, CPA, and LTV.
Affiliate Marketing or Performance Marketing?
So, what about Affiliate Marketing and Performance Marketing? Affiliate marketing, a subset of performance marketing, remains popular today. It matured early in the digital age, but the days of cash-back specials and coupon sites are now part of its more sophisticated sibling’s domain. The concept of affiliate marketing has expanded to include influencer marketing, native advertising, mobile apps, paid search, and email marketing. Today, performance marketing leverages the affiliated brand and product marketing concept to drive sales, customer acquisitions, and market expansion.
Starting a Campaign
In addition to affiliate marketing, it’s critical to remember that performance marketing is an umbrella term. Some advertisers target merchants and retailers, but the field comprises a matrix of networks, publishers and outsourced program managers (OPMs). Defining goals is the first part of your performance marketing campaign. Next, pick which channels to focus on. Then, choose your target audience. If you have questions about which software platforms can work best with fulfillment services, please be in touch with any questions!