An Intro to Performance Marketing-Part 1
When first considering Performance Marketing (online advertising strategy) for your brand or business, the different approaches and jargon can sometimes be intimidating. However, with eCommerce becoming a near-unavoidable entity, its time to consider starting your research. This week and next, we’re breaking down some tips, tricks, and basics to help jump start your foray into the Performance Marketing space. Read on below.
What IS Performance Marketing?
Performance Marketing is a marketing strategy that hinges on deliverables. In other words, the social media and influencer-based program sees the marketer giving payouts only after the agreed upon assets are executed. By conducting the brand/affiliate relationship in this way, the marketer can feel assured they are hitting all their targets in a truly cost-effective way. It also ensures the affiliate is working their hardest with the payout in mind, as well as personal exposure and other benefits.
Affiliate Marketing is a strategy that falls under the Performance Marketing umbrella and is inclusive of all current styles of social media marketing (influencer, email, search platform, etc.). This term was around before Performance Marketing however, and is also used to describe more traditional forms of social marketing like loyalty programs and coupons. Think of Performance Marketing as Affiliate Marketing’s cooler, younger sister.
How Does it Work?
There are four key groups at play in Performance Marketing: Retailers (the marketer), Affiliates (publishers and/or influencers), Affiliate Networks and Third-Party Tracking Platforms, and Affiliate Managers (influencer managers or agencies).
The Retailer/Affiliate relationship is the familiar marketer/influencer dynamic we discuss on this blog all the time. A brand or company will reach out to an influencer to help promote their product on social media. It’s an evergreen model for brands with a strong social presence.
Affiliate Networks and Third-Party Tracking Platforms are there to support the Retailer/Affiliate relationship. These resources include tools and applications for invoicing, text links, product feeds, and more. These platforms help marketers optimize their approaches and aid their affiliates in producing the best results possible.
Finally, Affiliate Managers are the go-between for marketers and affiliates. Whether in-house or sourced from a dedicated agency, affiliate managers help expedite results, optimize ROI, and mediate interactions with the affiliate.
So! Now that you know the what and how of Performance Marketing, it’s time to get into the why. Next week we’ll discuss the benefits of Performance Marketing over other styles, as well as some key terms and tips to keep in mind. Don’t worry, it will be painless.