If you’re a marketer, business owner, or anyone who’s ever been tasked with boosting their company’s bottom line, you probably know exactly what performance marketing is. Statista estimates that by 2024, the digital advertising industry will be worth around $646 billion—a huge chunk of the nearly $1 trillion digital marketing industry as a whole.
Performance marketing involves performance-based marketing and advertising activities like paid social, paid search, and connected TV (CTV advertising). It’s all about connecting customers with products or services that they want and are likely to purchase while companies pay only for successful results (i.e., clicks, leads, sales).
This article will provide ten tips to help you succeed in performance marketing.
1. Optimize your landing pages for conversions first.
Of course, some conversion rate optimization will have to be done after the fact—it is, after all, an iterative process. But the best ad targeting strategy in the world won’t result in increased sales if your landing pages aren’t optimized for conversions.
This means a few things:
- Your landing pages should load quickly (in under three seconds) and be mobile-friendly.
- They should feature a clear value proposition and an easy-to-follow CTA.
- They must have compelling copy that speaks to your target audience and reinforces the messaging in your ad copy.
- They need to have a consistent brand that is recognizable from the ad.
You’ll need to test different variations of your landing pages as you go along, but these are the basics for a successful launch.
2. Take advantage of automation and AI technology.
These days, artificial intelligence (AI) and machine learning can help marketers segment their target audiences, optimize campaigns and improve ROI on ads. Automating your performance marketing activities by leveraging AI can save you time while helping you reach more potential customers faster.
For example, you can use AI-driven tools to:
- Automate bid optimization
- Improve your ad placements
- Get better targeting
This can save you both time and money while also allowing you to focus on other tasks that require your attention.
3. Use A/B testing whenever possible.
A/B testing (also known as split testing) is an essential tool for any performance marketer’s toolbox. As we mentioned earlier, optimization is an iterative process, and A/B testing allows you to make small changes to your landing pages and ad campaigns to determine which ones are the most effective.
Using A/B testing can help you measure the effectiveness of different elements such as ad copy, placement, images, etc. so that you can continuously improve your campaigns and maximize your ROI.
4. Make sure you’re targeting the right audience.
Again, you will need to figure this out over time, but one of the most important aspects of performance marketing is targeting the right people with your ads. To do this, you need to have a good understanding of who your target customer is—their demographics, interests, and even their purchase history if you are using remarketing.
There are countless ways to start targeting correctly right off the bat:
- Use an SEO tool like Ahrefs to identify popular and relevant keywords.
- Create a customer persona to help you visualize your target customer.
- Use social media monitoring tools like Hootsuite to discover what your audience is talking about and interested in.
Once you have an idea of who you are targeting, be sure to update your campaigns accordingly so that the right people are seeing your ads.
5. Don’t target keywords with the highest volume or CPC.
Unless you have an enterprise budget, don’t bother with the keywords that have the highest bid prices or search volumes. Instead, focus on keywords with lower competition and lower cost-per-click (CPC).
Especially if you’re dealing with performance marketing for B2B, these keywords could be worth as much as $40 per click. Rather than burn your budget on one high-volume keyword, focus on targeting more low-volume keywords and cast a wide net of potential buyers with a more targeted focus.
6. Use connected TV and OTT advertising for the best targeting.
Connected TV (CTV) and OTT (over-the-top) differ wildly from the traditional television model.
Rather than casting the widest net possible, these platforms allow you to specifically target users and serve them personalized ads based on their interests and behavior.
This type of targeted advertising is incredibly powerful and efficient in performance marketing. With CTV or OTT advertising, you can get your message in front of the right people at the right time, making it an invaluable tool in any performance marketer’s arsenal. And by looking at CTV statistics and staying up to date with trends, you can optimize your campaigns for even better performance.
7. Master the art of mobile advertising.
Mobile devices now account for nearly 70% of all digital media consumption, so it’s no surprise that businesses are pouring more and more resources into mobile advertising to maximize their reach and ROI. However, while mobile is a powerful platform, it can also be tricky to navigate.
Mobile campaigns need to be tailored specifically for the device they’re being used on, and you should also consider the user’s context when creating your ads. In most cases, they need to look genuine and organic, as though they are a clickable part of the viewer’s social media feed.
8. Don’t underestimate the power of video.
Video is an incredibly powerful medium for performance marketing, and it shouldn’t be overlooked. Not only does video allow you to reach a wider audience, but it also allows you to create more engaging content that can boost your ROI significantly.
When creating videos for performance marketing campaigns, try to focus on storytelling and making the content as entertaining or emotionally relatable as possible. This will help you capture your viewers’ attention and encourage them to take action.
9. Utilize retargeting for better conversions.
Retargeting is a powerful tool for performance marketing, allowing you to target potential customers who have previously shown interest in your product or service. By targeting these users with ads that are relevant to their interests, you can increase the likelihood of them taking action and converting into a customer.
10. Always test and measure your results.
No matter how well you think you know your target audience, it’s always important to test different strategies and continuously measure the results to find out what works and what doesn’t. Try different ad formats, targeting strategies, and creative content to see which ones perform best and optimize your campaigns accordingly.
A few KPIs to look at include:
- CTR (click-through rate)
- CPA (cost-per-action)
- Conversion Rate
By doing this, you can make sure your performance marketing campaigns are as effective and efficient as possible.
Performance marketing is a complex strategy that requires careful planning, testing, and optimization. But with the right approach, you can maximize your reach and ROI while delivering results that make an impact. The tips outlined above can help you get started on the path to success in performance marketing.