As we look back on how advertising is done in yesteryears, everything needs payment first. In some cases, companies are lucky enough to start getting the attention of the public. But, there are also instances when you don’t see any improvement even if you’ve paid more than the average cost of the advertisement.
The conventional way of advertising where you have to pay first before you see the result is a risk. You’ll never know what will happen even after investing time, effort and money. Now, we have this performance marketing that applies to every business owner in the world. To learn further about the importance of performance marketing, just read further.
Types of Performance Marketing
For you to understand completely its roles in the business world, you should identify the types first. Check the enumeration of the types below and to have an idea how it works.
- CPA (Cost per Acquisition)
This method refers to the actual buying of a product online. By each time a visitor buys the item online, there will be a corresponding payment on the advertiser’s end. For every purchase made, the price of the entire advertisement will also vary.
- CPL (Cost per Lead)
Web pages that direct you to an actual filling of an online account is a good example of this type. If a reader signs up for the website linked to the advertisement, the payment will be counted. If the visitor decides to ignore and skip the sign-up process, there will be no payment to be made from the client’s end.
- CPT (Cost per Thousand)
Have you wondered how video advertisements keep on filling your newsfeed? Can you see how many times that video was viewed by the public? Well, that’s a smart option for new business and even pioneering companies. A lot of people likes watching videos online. With every thousands of views, the advertiser will have to pay for it. If it gained small views, there will also be a small payment to be arranged.
- CPC (Cost per Click)
Now, this is somewhat like a pay-per-click method. The advertiser needs to wait on the statistics of every click made to the advertisement. Again, there is a bracket on the bidding and pricing that corresponds to the payment that has to be arranged.
From the explanations above, you now have the idea of the logic used for this marketing approach. The more actions made by the viewer or reader, the more money you will have to pay back to the agency. But, if there is less action made to the advertisement, the advertiser can adjust the final price.
Importance in Business Profit
There is no need to worry how your efforts will pay off at the end of the day. Before you plan on the marketing strategy, you need to identify which type you will invest first. In that manner, you can save everyone’s effort and make use of it for a specific purpose.
Performance marketing is more than driving awareness to the community. This new trend in advertising concentrates on the actual loyal clients. The services and products will reach only the people who are interested to obtain it in the first place. In short, you will gain more profits than hearing critics from the target market. Choosing this method is a smart move. Why? Well, you need not pay for the services you were not able to see progress. You will only pay for the result collected from the actions made by the viewers of your choice.