Performance marketing has been in high demand in recent years, within the broader digital marketing universe in India. The constant frenzy to acquire customers quickly and affordably, coupled with the need to show significant results on investor funds, has led to an incredible increase in performance marketing campaigns. Unlike traditional advertising, where a brand cannot gauge ROI after paying for ads, performance marketing allows advertisers to pay for ads only when certain specific actions are completed.
Currently, performance marketing is a key ingredient in most brands’ marketing strategy, as it helps establish proof of concept for a new product, as well as creating a reliable and consistent flow of new customers. There has been an increase in the number of campaigns brands have run with influencers on social platforms, especially new-age ones like MX Takatak and Moj. It also helps expand reach, engagement and conversion of new buyers in new markets at lower risk and has a higher ROI than other digital channels.
The right mix
A brand needs to know which platform to start on. Those known to allow marketers to run performance marketing campaigns are Google, Facebook, other social media channels, affiliate partners, content discovery networks like Taboola, programmatic buying, ads apps, etc. flow of new customers and revenue, then scale to more.
There are three levels of optimization in performance campaigns: ads, ad groups/adsets, and landing pages. Whenever your brand is stuck with poor performance, the culprit is likely to fall into these three categories. Brands should regularly conduct market research and surveys with a sample of target audience to ensure ads and landing pages are effective. Always try to negotiate a cost per lead with affiliate partners with soft predefined KPIs. This means that if you have an e-commerce business, mention that you will pay X% or `Y per transaction if the product return rate is less than Z%. For lead generation campaigns, you can define KPIs. For example, prospects must be reachable and they must agree to having filled out the form.
Clarity in creativity
While working on the creative side of the ads, emphasize the question, “What problem are you solving for the customer?” rather than “What product do you sell?”. This eases the way forward in the long run. Having clear CTAs and trust metrics like reviews and FAQs ensure that users have adequate information to make the purchasing decision. Communication on your ads and your landing page must complement each other. There should be the same line of communication, words, tonality and color palette between the two.
Remarketing is also essential in any performance marketing strategy. Performance marketing in India is still in its nascent stage, and if a brand wants to scale, keeping a long-term approach in mind, now is a good time to get started.
The author is co-founder, DigiChefs