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What should you know about Performance marketing?

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What is Performance Marketing?

 

Performance marketing is a result-driven digital marketing strategy. Since payment is based on how users interact with the content, it’s ideal for businesses looking to reach a large audience.

 

How does Performance Marketing work?

 

Advertisers work with agencies or publishers to design and place advertisements for their businesses across a variety of performance marketing channels, including social media, search engines, videos, embedded web content, and more. Instead of paying for a traditional advertisement, Advertisers pay based on the number of clicks, impressions, shares, or sales generated by their ad.

 

Advertisers place their ads on a specific channel and then pay based on how well those ads perform. When it comes to performance marketing, there are a few different ways to pay:

 

  1. Cost Per Click (CPC)

 

Advertisers make payments based on the number of times their ads are clicked. This is a good way to increase website traffic. 

 

  1. Cost Per Impression (CPM)

 

Impressions are simply views of your advertisement. You pay per thousand views with CPM (so if 25,000 people see your ad, you’d pay your base rate multiplied by 25).

 

  1. Cost Per Sale (CPS)

 

You only pay CPS when you make a sale that was prompted by an advertisement. Affiliate marketing makes extensive use of this system.

 

  1. Cost per Lead (CPL)

 

CPL works similarly to cost per sale in that you pay when someone registers for something, such as an email newsletter or a webinar. CPL generates leads, allowing you to follow up with customers and close more sales.

 

  1. Cost Per Acquisition (CPA)

 

CPA is similar to CPL and CPS, but it is a more general term. Advertisers are compensated when customers complete a specific action (which could include making a sale, sharing their contact information, visiting your blog, etc.).

 

What are the benefits of Performance Marketing?

 

With the future of digital marketing looking brighter by the year, leveraging performance marketing channels can help to scale your advertising efforts to meet your business’s needs without breaking the bank.

 

Performance marketing is an effective and helpful way to broaden your audience and reach while also collecting valuable data. The advantages don’t end there. It’s easier than ever to grow your business when you embrace the full functionality of performance marketing, from native and affiliate advertising to sponsored social media content.

 

Do you wish to have your business placed in ads and scale your performance? Look no further than The Social Lions, a trusted digital marketing agency in Mumbai. Our expertise in performance marketing and PPC ads will help you reach the right audience and track the performance of your ads. 

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