Performance marketing is a form of digital marketing. Its strategy is result-driven marketing. So, a company advertises a product or service on a digital platform. It then pays for the ad based on how well it does online. Advertisers pay fees for an ad’s conversion or clicks.
Performance marketing gives leverage to advertisers. They only have to pay for how well the ad performs. This system allows local businesses to reach their goals on a limited budget. They may place an ad through a performance marketing agency and pay as the ad generates engagement.
Performance marketing is an ideal strategy for your local business. It’s also great for new and growing companies. So, knowing how to use performance marketing to make sales is beneficial. With the right amount of traffic, you can boost your revenue. But first, let’s understand what a performance marketing agency does.
To keep things simple, a performance marketing agency is a do-it-all marketing company responsible for different marketing approaches like digital or direct marketing. The performance marketing agency specializes in all forms of marketing strategies, particularly paid ads.
These agencies use several tools to reach customers. This includes Google ads, Facebook ads, Linkedin ads, display advertising, etc. As such, they boost conversion rates and utilize consumer data to create a unique marketing experience for everyone. This is particularly helpful for any local business, as it helps drive customers to their page.
In line with that, here are 6 ways to implement performance to boost your local business:
1. Dynamic Remarketing
Using data to personalize customer experience is one of the best features of performance marketing. Dynamic remarketing is an effective strategy. It takes a record of the products or services a visitor looks at on a website. Then whenever the same visitor comes back to the site, those products or services are displayed to them.
You can take advantage of visitors’ behavior and preferences through dynamic remarketing. This method influences visitors to buy a product or service. But, since visitors may not spend a long time on your website, they must see what interests them.
For example, a customer visits a website and adds a product to their cart but doesn’t make the purchase. The retailer can then use that product in an ad targeting that customer. This action will encourage the customer to buy the product.
Customers already showed interest in a product before seeing the ad. That’s why remarketing conversion rates are much higher than those for standard purchase campaigns.
To get the most out of dynamic remarketing:
- Attach a clear call to action to the ad. This call to action should encourage the customer to buy the product and revisit your site later
- Set a cap on the number of times a customer sees an ad in a day. This cap will prevent customers from becoming irritated by your ads.
2. Influencer Marketing
Influencer marketing is highly effective on social media. It uses online celebrities and personalities to endorse products. Thus, influencers endorse products on their pages to loyal followers. Also, it can be a cost-effective way to reach your target market on social media. Influencer marketing is a more relatable advertising method than an overt sales pitch.
But influencer marketing can be challenging to measure. There is no direct way to know if social media likes convert to sales metrics. So, this strategy can be fraudulent and time-wasting.
Yet, influencer marketing is constantly improving, like most online practices. Social media networks are bent on using this strategy due to advertiser satisfaction. Advertisers are incentivized by the higher revenue the strategy generates.
To get the most out of influencer marketing:
- Don’t look at the number of followers an influencer has. Instead, look at the number of engagements their posts get. What you want is their ability to affect audience behaviors.
- Spread your reach and try different apps. Facebook apps are not the only option.
3. Visual Search
With a smartphone camera, you can discover products and services online. You don’t always need to type a query into a search engine. Instead, you can simply aim your smartphone camera at an object. Then, computer vision technology turns the image into a search.
Shopping was traditionally visual, and now, digital technology has caught up. So, we don’t need to describe what we’re looking for. Instead, we can simply recreate the shopping experience digitally.
Major social networks and search engines have put a lot into visual search. So, performance marketers must create more compelling visual content to take advantage of this tool.
Visual search is great for marketers. When a customer does a visual search, they are looking for a particular product. So, their search creates an opportunity for marketers to connect with them directly. It differs from entering a vague text-based query like “ladies’ shoes.” So, the customer can show the exact product they are looking for.
To get the most out of visual search:
- Monitor what users usually search for and how the demands vary.
- Use keywords to label your content. Organize items into categories so that search engines can quickly identify your products.
4. Video Content Marketing
More consumers are turning to video platforms like YouTube to research products. But buying a product from a video is not easy. So, consumers leave YouTube and proceed to buy via a search engine or brand website.
Marketers know that each extra step a customer takes is another chance to drop out of buying. Customers could get distracted and go somewhere else. Google has tried to close the gaps. They now match ads with video content and user search queries.
Brands now introduce their products as soon as users watch any related video content. So, it is an excellent opportunity for local businesses too.
To get the most out of video content marketing:
- Create video content that is cohesive with e-commerce sales. Customers must have a consistent experience
- Keep your ads up to date with video. Display products that are in stock alone. Poor ad performance leads to frustrated customers.
5. Amazon Advertising
Amazon offers various ways to boost your local business’s visibility. You can pay to show up at the top of relevant search results, similar to Google’s paid search. Also, you can use the Sponsored Brands’ products to rank at the top of results for keywords and brand names.
So, Amazon can be used as an advertising platform. You can use it to create brand awareness and sales. As a result, Amazon has established itself as a major performance marketing strategy.
To get the most out of Amazon:
- Combine your product-level profit margins with Amazon’s advertising cost of sale. That will show how well Amazon ads affect your business impact
- Use the negative keywords option to block queries that aren’t relevant to your business.
Stories started with Snapchat. Then Instagram designed its own Stories product, and BAM!
Stories let users share short, image-based posts that disappear after 24 hours. The format is appealing because of its transient nature. It is also desirable because people like to create narratives. Moreover, there is enough suspense that keeps people clicking for more.
Brands go wherever they can find an audience. But audiences may not want to hear from brands all the time. So, businesses need to be strategic when using Stories. For example, in one shot, you can show one product while building interest for another.
To get the most out of Stories:
- Be sensitive to give your ads a human feel with language. Don’t be all corporate
- Use polls, stickers, and video tools to engage your audience. Don’t just advertise a product to them
Performance marketing is more sophisticated and multifaceted than ever. But it is a powerful advertising strategy for a local business. Also, you can boost your visibility and sales through targeted ads and performance metrics.
Performance marketing is also quite dynamic. You have to keep adapting to trends in the ever-morphing online market.