results marketing

Performance Marketing: The Marketing of Results

Results marketing is a type of advertising in which you pay for the actual performance of the ads you serve. Also known as objective marketing or performance marketing,it tries to define the objective of advertising, be able to measure its results and thus know in a neutral way what the real effectiveness of an advertisement is.

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When we read the content of a website, do we take enough time to read and interact with each advertising element or do we ignore them? Let’s be honest, if we are lucky, we see one that enters our peripheral vision fleetingly, but we no longer tend to focus our attention on it as it used to be done at the beginning of Internet browsing. When you buy advertising in a major medium, you are paying for the audience that medium has, but many of the users will not even take a look at the ad. That is why before paying the full price for that audience, many digital agencies prefer to adjust the payment to the results offered by such advertising.

For example, the price of an ad may be based on how often it is viewed on a web page, how often it is clicked, how often it meets a goal, or how often it ends up being a sale. A branch of performance marketing is affiliate marketing, where other websites or blogs (affiliates) are paid to promote a particular product or service, through a commission for each objective or sale achieved through said reference.

Marketing Campaigns

We have seen that in marketing by results you pay when you meet objectives, but that is not why it is the most effective system. The investment may be low with respect to the benefits,but that does not mean that you can not obtain much higher profits with other methods. For this type of marketing to be efficient, ads must be very attractive and easy to understand.

To make a campaign, we first ask ourselves what we intend to achieve with the action: a brand recognition, the generation of a database of potential customers, sales … The more specific it is, the better the final result can be analyzed. Next, it is measured, in order to identify the results, with specific methodology and tools. To make a campaign, you can choose different modalities, or even combine them with each other for a more optimal performance.

Types of Results Marketing

Cost per Action

Target marketing is very well received by small businesses, as they often have tighter budgets and can’t afford to spend on advertising without knowing if someone is going to see the ad. For example, through cost per action or CPA,the advertiser can pay only if there has been interaction with their ad, whether in the form of click, registration, sale… This is how you pay only if you are productive.

Cost per Lead

It is paid by commission or by objective achieved (lead), which is called cost per lead or CPL. There are two reasons to choose this: need to get qualified contacts interested in the product and then transform into sales or need for a database with a target audience, to which to send promotions later.

Cost per Thousand

While results marketing has been primarily developed on the web, it can also be found in other media. For example, there are many types of ads available on the Internet for a cost per thousand or CPMcampaign, which is also used on radio, television and paper, where the cost per thousand visits to the ad is calculated. But this is the weakest form of target marketing, as companies are paid according to the size of their audiences, so there is no guarantee that the audience will respond to the ad. In this case, the responsibility for the ad to be seen falls mostly on the advertiser.

Cost Per Click

Finally, cost per click or CPC works best when published in a place with relevant content, such as a related blog. For this, in addition, we must have a great management of the keywords to be used and that the search engines are able to link our products with the requirements of the users. Also, the most popular keywords are usually also the most expensive, so the same budget is higher.