Performance marketing focuses on the actions an advertiser takes to achieve specific results. It involves increasing the number of registered users so the brand can generate clicks through offers or sales of its products.
Its objective is to generate relevant consumer behavior. This can be making a purchase, clicking on a link, or downloading specific content.
The tools defined as performance marketing include search engine advertising, social media, email marketing, SEO, and others. Each also uses different measurement methods.
Some of these metrics include Cost Per Click (CPC), which is based on the number of clicks on the ad; and Cost Per Lead (CPL), where payment is only made when users click on an ad and then register using a signup form. Cost per acquisition (CPA) refers to when the advertiser pays for a specific action, such as a sales transaction through e-commerce.
One of the great benefits of performance marketing is that campaigns can be measured precisely, meaning that the actions taken and expected results can be detailed specifically. It is also important that these results be measured, compared, studied, and analyzed, as they are all part of the marketing strategy. Ideally, a digital ecosystem should be created to support each action.
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