‘Performance marketing generates £14 in sales for retailers for every £1 spent’ - Internet Advertising Bureau UK
With return on investment figures like this, there is no doubt that performance marketing owns the digital landscape. Performance marketing can offer a solution for a vast range of marketing activities from generating online sales or acquiring new leads, to tracking in-store influence through card-link initiatives, driving calls to a call centre and measuring the effectiveness of print advertising. It’s for this reason that performance marketing should be the cornerstone of your digital marketing strategies.
This diversification of channel coverage has opened up a gateway to success for new digital companies. The appeal of the no-risk performance model for advertisers has allowed technology publishers to scale incredibly quickly, with success demonstrated time and time again. Yieldify is a great example of this, going from 2 to 60 employees and 0 to 800 clients in less than twelve months.
“In all businesses, regardless of industry, a key focus to drive growth is getting a strong return on your spending. Understanding this need, as a technology provider, and tailoring the commercial model to run in line with it has allowed our clients to utilise our technology with minimal risk. This has consolidated the performance based marketing channel as one of the most valuable to any digital advertiser.” – Jay Radia, Founder & CEO, Yieldify.
The growth of technology partners within the channel has transformed our definition of a healthy publisher mix. The importance of including abandonment technology, retargeting, display, social sharing and other channels alongside traditional publishers such as cashback, voucher, content and paid search has unquestionably helped take the performance marketing channel from strength to strength. Performance networks develop and build very strong relationships across the publisher space, and for SME clients in particular, these relationships can help remove some of the barriers to entry when looking to experiment with approaches such as mobile display.
Driven by technological advancements the diversification of the performance channel has been instrumental in achieving the reputation and great results that we have come to expect. Performance marketing networks are actively working to refine developments such as attribution modelling which are already shaping the future of performance marketing and encouraging more strategic alignment from other marketing channels. If utilised correctly, such developments can provide advertisers, publishers and the marketplace with ‘big data’ helping them strategically plan their online marketing activity.
Over the past two years, we have seen a sharp increase in CPM, CPC and tenancy activity with our clients at Webgains. This directly relates to the fact we are able to attribute and measure such activity to an effective CPA much more accurately through the analysis of user journeys. Understanding more about when, where and how consumers are engaging with brands enables advertisers to spend more effectively and enables partners and publishers in the industry to optimise the monetisation of their traffic. Performance marketers are seen to be digital marketing leaders and are taking ownership of the digital landscape, while remaining one of the most cost-effective channels for advertisers.