Performance Marketing: The Most Essential Tools


To be able to predict the number of sales and be confident in the effectiveness of your advertising is great. For any business from a grocery retailer to a Woo Casino login website, it’s possible with performance marketing techniques, which focus on finding the shortest path to sales growth to achieve specific financial targets.

Performance Marketing - The Most Essential Tools

What Is Performance Marketing and Why Is It Good for Business?

Performance marketing focuses on achieving measurable business results. These include analytics and tools that focus on direct customer acquisition and increased profits.

Unlike image-based advertising methods that focus on abstractly measurable results (increased visibility, improved reputation, etc.), performance marketing is measured by specific metrics that evaluate the success of an advertising campaign in numbers.

In other words, working on brand image and achieving audience loyalty are not the key objective of a performance campaign. Its main goal is the return on the advertising investment and the solution of practical business problems.

It’s worth noting that this type of marketing is minimally related to the process of creating a business product, especially offline.

The fact is that due to the specifics of working tools of performance based in the digital space, marketing strategies of this direction are most fully realized in Internet product promotion. It is the in-depth analysis of the financial costs of digital advertising channels with the transparency of evaluation and easy measurability of their effectiveness that is the main strength of performance marketing.

Here are a few important concepts for performance marketing. The key term here is metrics – a qualitative or quantitative indicator that reflects a particular characteristic and level of success of a product. Certain metrics are responsible for analytics of different business tasks. Some of them represent the quality of customer traffic, others – financial success of the product itself, and still others are called to evaluate different kinds of advertising. Here are some basic and universal metrics that marketers use:

  • ROMI solely reflects the return on marketing investment.
  • CPA – the cost of the targeted action.
  • CTR – the ratio of the number of clicks to the number of impressions.
  • CPM – the cost of thousands of ad impressions.
  • LTV – The total profit you get from the client during his cooperation with you.
  • ROI – the return on investment in product advertising.
  • CPC – the cost per click.

Despite the impressive list and intimidating confusing names of metrics, without competent interpretation they are just numbers. It’s the analytics based on the metrics that determine changing your business strategy for the better and fixing existing problems.

The Main Tools of Performance Marketing

Now let us have a closer look at how exactly performance marketers stimulate sales by measuring KPIs which are important for business, and with the help of which tools they perform analytics. It’s important to mention at once that seldom is only one promotional tool used, more often they are used in combination. Let’s get acquainted with the main advertising channels.

Contextual Advertising

Contextual advertising is an online marketing channel in which ads are shown to the audience based on their search queries or interests. In other words, this type of advertising is seen by those users who have typed certain keywords into a search engine. Context is well suited to promote products and services that need to sell right now, because the user himself dialed the desired commercial query. So the client knows what he needs, and is ready to buy the product.

To set up contextual advertising offices in Google Ads. Contextual ads are placed on thematic platforms, such as Google’s contextual media network. With the help of these services, ads are placed considering the behavioral characteristics of the user and his thematic interests.

As noted, context is aimed at a warmer audience, when the product is already understood and there is a demand for it. Therefore, context always has a higher CTR. There are also many more options for placement formats – search results, social networks, video format, etc.

Targeted Advertising

Targeted advertising is social media advertising that is shown to people with certain demographic characteristics, based on their long-term interests and online behavior.

The important difference between targeted advertising and contextual advertising, which is aimed at a specific customer request – it’s focused on awakening a desire to buy a product in a potential customer. Therefore, targeting advertising relies on creativity that will attract the attention of users in social networks.

The fact is that targeting is aimed at people who best fit the portrait of your customer. Unlike context, a person doesn’t plan the purchase in advance, this desire in it should cause advertising.

Video Advertising

Video advertising is a unique tool of promotion and business efficiency improvement which has image and performance functions at the same time. For example, integrated video campaigns together increase user engagement and brand memorability.

This type of advertising emerged with the spread of mass television, but in the modern context is more often used in the format of placement on Internet resources – video hostings, online movie theaters, social networks, etc.

Video advertising has several strengths. Firstly, it’s more likely to be viewed by the user. Second, video ads can be targeted to a targeted audience. Finally, this type of advertising is relatively budget-friendly, compared, for example, with television advertising, which is beneficial for companies.

At the same time, the video format itself provides an opportunity to visually convey moods, emotions, a memorable slogan, and even a song with which your product can be associated.

The main platforms for video advertising areÖ‰

  • Entertainment and information sites.
  • Social networks.
  • Video hosting sites.
  • Online movie theaters.
  • Mobile apps.

Influencer Marketing

In a world of global digitalization, most of us spend an enormous amount of time looking at photos and videos on social media, including those from famous bloggers. Seeing their faces and life events on a daily basis, we often tend to trust their recommendations about any products or services as well.

Interaction of business with Influencers in the Internet environment to promote their own product through their target audience is called influencer marketing. The effectiveness of this type of marketing is that it’s native, that is, it doesn’t look like advertising.

At the same time, there is a specific feature of influencer marketing. Just because of its inherent nativeness, the effectiveness of this type of advertising is much harder to trace (e.g., click-throughs) compared to targeting and context.

Competent native ads fit harmoniously into the content of the profile, so they don’t seem obvious and do not catch the eye. There is another important advantageÖ‰ placing ads with opinion leaders, you can easily get useful data about the reaction of the target audience to your product. When choosing such a tool for an advertising campaign, it’s important to remember that it’s much easier to sell complex products, such as educational courses, through blogger recommendations.


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