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Blogger’s Park: When performance marketing pays off

A look at how brands can capitalise on this strategy

Currently, performance marketing is a key ingredient in most brands’ marketing strategy, as it helps towards building a proof of concept for a novel product, along with building a reliable and consistent stream of new customers.
Currently, performance marketing is a key ingredient in most brands’ marketing strategy, as it helps towards building a proof of concept for a novel product, along with building a reliable and consistent stream of new customers.

Deep Mehta

Performance marketing is high in demand over the past few years, within the larger universe of digital marketing in India. The constant spree to acquire customers soon and at the lowest cost, coupled with the need to show significant results on investor funds, has led to an incredible surge in performance marketing campaigns. Unlike traditional advertising, where a brand cannot gauge ROI after paying for ads, performance marketing allows advertisers to pay for ads only when certain specific actions are completed.      

Currently, performance marketing is a key ingredient in most brands’ marketing strategy, as it helps towards building a proof of concept for a novel product, along with building a reliable and consistent stream of new customers. There has been a growth in the number of campaigns brands have done with influencers on social platforms, especially the new age ones like MX Takatak and Moj. It also helps scale reach, engagement, and conversion of new buyers in new markets at a lower risk and showcases a higher ROI than other digital channels.

The right mix

A brand needs to know on which platform to begin. Those known to enable marketers with performance marketing campaigns are Google, Facebook, other social media channels, affiliate partners, content discovery networks like Taboola, programmatic buying, app ads, etc. A brand should begin with a couple of platforms first, build a consistent stream of new customers and revenues, and then scale to more.      

There are three layers of optimisations in performance campaigns — ads, ad groups/ sets, and landing pages. Every time your brand is stuck with poor performance, the culprit most likely lies within these three. Brands should regularly conduct market surveys and polls with a sample target audience to ensure that the ads and landing pages are effective. Always try to negotiate a cost per lead with affiliate partners with some soft KPIs pre-determined. This means, if you have an e-commerce business, mention that you will pay X% or `Y per transaction if the return rate of products is less than Z%. For lead generation campaigns, you can set KPIs. For example, the leads should be contactable and they should agree that they filled up the form.

Clarity in creativity

While working on the creative aspect of the ads stress on the question, “What problem do you solve for the customer?” rather than, “What product are you selling?”. This  smoothens the way forward in the long run. Having clear CTAs and trust metrics like reviews, and FAQs, ensure users have adequate information to make the purchase decision. The communication on your ads and your landing page should complement each other. There should be the same line of communication, words, tonality, and colour scheme between both.

Remarketing, too, is key in any performance marketing strategy. Performance marketing in India is still in its budding phase, and if a brand wants to scale, keeping a long-term approach in mind, this is a good time to jump in.

The author is co-founder, DigiChefs

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