Why Performance Marketing is growing - What you need to know
Why is Performance Marketing one of the fastest growing Digital Marketing strategies used today? The biggest reason is as efficiency is now at the heart of all marketing decisions made by a business. Performance Marketing's result-driven and experimentation-based approach is one which improves efficiency for many.
This has put this particular marketing strategy into the limelight. Businesses should be aware of what performance marketing is, and the reason for its growth. It may be the marketing strategy that helps bring the results you've been looking for.
Why is it growing?
Performance Marketing has experienced a steady increase of interest over the last decade. This can be attributed to the growth of Social Media as a marketing medium during this period. Digital marketing expenditure has recently exceeded that of TV advertising. Needless to say, Paid Social (predominately Facebook & Instagram) has played a large role in accomplishing this.
The ease of creating, tracking and measuring advertisements was one of the reasons why businesses choose to invest in Paid Social. However, with the recent changes to iOS 14 came attribution and tracking issues. This hindered the performance of Paid social advertisement as a whole. Many businesses have experienced substandard results with these changes.
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Another reason for its growth is from the focus of efficiency. When digital marketing was still in its infancy, agencies were able to charge for results that had no meaningful impact. Bounce rates, impressions, pageviews - numbers that didn’t bring any real value.
This practice no longer stands in the eyes of managers and marketing directors. They want results that actually help the business - revenue, lifetime value, and sales.
Performance Marketing’s objective is to reach these goals with its experimental and timely nature. This alignment of values and interest has been a large factor of its growth.
Many Performance Marketing agencies also utilise a performance-based pay structure. This means that as a business, you only pay based on the value delivered by the agency. This notion of paying for what you get is attractive for many.
Conclusion
Performance Marketing is a growing digital marketing strategy that should not be ignored. Its focus on metrics that matter and efficiency makes it a compelling tactic for many scaling businesses striving for strong results. Looking for a Performance Marketing Agency? Contact Launcher Lab to talk to the proven experts in Performance Marketing today.
