Getting your message in front of consumers does wonders to make them aware of your brand. But why pay just to build brand awareness when you could pay for conversion? This is why an increasing number of companies are turning to performance marketing.
Although some of the biggest advertising trends today evolved out of the practice (think email and pay-per-click), performance marketing has kept a relatively low profile — until now.
With more consumers shopping online for even the most basic necessities, e-commerce has become a focus for Nestlé, which is why its digital chief says the brand will use performance marketing to enhance its e-commerce initiatives.
Performance marketing campaigns are highly targeted and the marketing fee is paid only after a consumer takes an action through a click or purchase, providing retailers with real-time data that helps them drive ROI.
Most agencies still charge clients a percentage of spend, which motivates them to continue spending your money, regardless of profitability. Flat-fee or return-on-ad-spend revenue models are better options to keep costs down and ensure the agency focuses on increasing your profits. This way, you know where your money is going and that your agency isn’t spending more than it needs to just to pad its own bottom line.
Good performance marketing agencies stay true to your brand by aligning their strategy with your marketing goals. They help you find ways to acquire more customers through programs that drive the best ROI, as virtually every channel they work on has a clear connection between spend and revenue.
Remember, it’s always about you — never about them.
Robert Glazer, founder and managing director of Acceleration Partners, is a customer acquisition specialist with an exceptional track record in growing revenue and profits for fast-growing consumer products and services companies. His clients include adidas, eBay, Gymboree, The Honest Company, ModCloth, Reebok, Shutterfly, Target, Tiny Prints, Warby Parker and zulily. Discover more tips for developing a successful digital strategy in Acceleration Partners’ most recent e-book.