Performance-Based Marketing: The Power to Change the Future of Business Growth

TORONTO, Feb. 28, 2022 /CNW/ - Marketing and advertising have come a long way over the past decade. What was once a basic principle of informing another about a product or service, has now become a comprehensive full funnel of interactions with one major goal at the forefront for all business owners: the purchase of a product or service.

The complexities of marketing have evolved over the years, especially since the inception of the internet, and its opportunity for mass scale. Technology has changed the game for businesses; and subsequently, has changed consumer behaviour. People are spending more time online, more time researching and more time vetting products and professional service providers prior to making any type of purchase decision; the power of digital marketing is the strongest it's ever been.

Performance-based marketing falls under the digital marketing umbrella where companies spend is based on performance indicators. The landscape is based on in-real-time capabilities to show ads at the right time, in the right place, to the right target audience, based on budget (or ad spend) – this is called the bidding strategy. The strategy used is aimed at resulting in a desired conversion – the prospective consumer or customer taking an action. For example, campaigns that are optimized for website traffic will utilize spend based on a "cost per click" model; or campaigns that are optimized for lead generation will utilize spend based on a "cost per lead" strategy.

Each digital platform offers their advertisers tools for target marketing – specific audiences and mediums to reach those audiences to implore an action. It is imperative to understand and be strategic about choosing the most effective platform, optimizations, audiences, ad creative and copy to solicit that desired outcome.

Performance-based marketing is a quantitative solution to the hurdle of effective marketing: what we call attribution, which in essence quantifies the marketing strategy to the desired outcome. If we know that for every $1000, we sell X number of products, then we can infer that $10,000 spend will result in 10X in sales. Once business owners can quantify that cost per click, cost per lead, or cost per acquisition, they can start making informed decisions about their marketing spends and business projections.

SOURCE Social Eyes Communications

Marly Broudie, Founder and SEO, SocialEyes Communications, Phone: [phone], Email: [email protected]