Performance Based Marketing

Performance-based marketing is the type of marketing in which one or more partners of a business work together to achieve their intended purpose and revenue and are rewarded for their performance. At the end of the business, sales, customer winning or clicks, such as the money shown is paid according to success. It is a channel that everyone wins as a result of being less risky by brands.

How Does Performance Based Marketing Work?

The brand or business decides to use the performance-based marketing channel. He decides on the product and service he wants to bring forward, and he may just want to advertise his brand in this section. Decides which publisher to work with.
A publisher is a website, a search engine blog or a person who advertises on behalf of a brand or business and receives commissions as much as success. They aim to attract audiences with creative content and engaging ads. An example of this is a youtuber who invites you to shop for a product on the Youtube channel and invite you to shop with the promo code. Or sites that distribute gift certificates or sites that compare performance and price of products are examples of other publishers.
Broker sites are the structure that allows the performance of the publisher to be measured. By registering on the site, an advertiser will follow the return of the publisher, the customer or the return on purchase, and thus pay the commission to the publisher based on performance. At the same time, broker sites give advice about performance-based marketing to the brand. Publishers register here to learn and access the registered trademarks. Broker sites also provide billing and collection services at the end of the job. These sites contain codes that track customer activity. It is one of the basic structures that provide the measurement of performance-based marketing.

Performance Based Marketing Channels

Seach Engine Marketing (SEM)

SEM is a performance-based marketing type with search engine. Here, the publisher and intermediary site in the roles listed above is the search engine and is published on the advertiser’s advertised budget and across the search engine. When the search term is entered, the search engine allocates part of the screen for paid ads while serving relevant content. These ads are charged per click or view. It is an application that increases e-commerce and site traffic with a high return rate. The target audience can be limited and displayed exactly to the desired audience. The most common example is Google Ads.

Social Media Marketing

Social media marketing is paid advertising on social media channels. Search engine marketing, such as advertising to people in the flow may appear as ads or blogs such as influcer or blog posts or stories to promote the site is an example of this marketing channel. For the advertisement that appears in the flow, the advertising agreement is made with the social media channel and the advertisement is made with the specified budget. In advertisements made from personal accounts, an advertising agreement is made between the advertiser and the account holder, measurements are made as stated above and commission or fee is paid according to the number of people or customers won.

Native Advertising

On a platform and content related to the subject, it is the advertising in the style of reminding the brand without mentioning the naturalness and flow of the content or mentioning the brand when it is necessary. It is mostly done by people with masses and domains in social media channels. It can be said to be quite effective. Because they are natural-style shares, they arouse people’s curiosity.

Sales Partnership

It is the type of marketing in which a commission is taken as much as a customer or visitor as a result of the promotion of a brand’s products in a blog, site or personal account. Both brand and advertiser wins. It is the most prominent example of performance-based marketing.

Advantages of Performance Based Marketing

Performans Pazarlamasının Avantajları Nelerdir

Measurable

Since the goal is to sell products, increase site traffic, and get clicks, they are all measurable. There are specialized tool sites to track the job of measuring and monitoring. These follow the customer movements as a result of the activities of the affiliated advertiser. Incoming interactions and feedbacks are measured by these sites.

ROI High

ROI, return on investment is high. Much more cost-effective than most advertising sectors to reach the target audience and customer movement is provided. In this area, the advertiser or the advertising platform gives a lot of money back. Product sales or brand confidence increases.

Rising Marketing Channel

It is the most preferred and rising marketing channel. It is expected to increase by 10% by 2020. Most brands that analyze their advantages find this marketing channel less risky, and as a result performance-based marketing becomes a constantly rising and demanding channel.

Wide Audience Access

It is a marketing channel that reaches a wide audience. Publisher and publisher endeavors to gain. Joining the forces of all partners raises the business. Working with different publishers or advertising on different platforms provides a lot of customer feedback.

Sales and Visitor Growth

All performance-based marketing efforts aim to gain visitors, followers and customers. The best results are obtained. The advertisements increase the visitor and convince people to buy. SEM includes many marketing channels such as SEO, social media marketing.

Reliable

A performance-based fee is paid rather than a fixed price. This means that the service will not be paid. It is a reliable and robust marketing channel for brands. The fee is determined per click, visit or sale.

Performance Based Marketing Strategies

Test and perform checks. Test the site before establishing a strategic partnership.
Take measurements, get the commercial programs needed for the measurement, find the tool site, or get tools like Google Analytics for ads you place on a search engine. Make sure that the Key Performance Indicators, KPIs, are correctly set.
Discuss all details with the partner or business. Decide the criteria from the beginning. Pay as a result of the measurements.
Make sure the ad content is interesting. Talk to and agree with the publishers, influcer or blogger.