What is Performance Marketing?
Performance marketing is what it sounds — a form of marketing that relies on performance. It's akin to regular online advertising, except the advertiser only pays when a specific action occurs, such as a click, sale or lead to a potential sale. Consumers desire the same experience they've come to expect from other businesses in healthcare too. It combines both paid advertising and brand marketing but only after the desired result has occurred. Thanks to performance marketing, companies can now evaluate their brand saturation and identify which customers should be targeted. With Tech advances, brands have an effective and efficient means of marketing themselves and can better optimize their campaigns for even greater reward.
What are the advantages of Marketing Performance?
The advantages of performance marketing are innumerable, as they can be tracked and monitored closely. Whilst this type of advertising does come with some risks, these are divided between the brand and the publisher. For example, for cost per impression the responsibility is primarily on the company. When it comes to cost per download, application or lead, liability is shared by each party. In contrast to this, in the case of cost per acquisition it is mainly the publisher who takes on the danger – but it also motivates them to accurately reach their desired audience.
Performance marketing also expands and diversifies your audience's reach, which is another key benefit. You can reach niche markets and audiences you have never been able to reach or even consider before if you have an army of publishers promoting your brand. When publishers tailor your advertising to their loyal audience, you'll find that your revenue increases.
A saturated market makes it difficult to stand out, which is why brand awareness is so important. There are many ways to increase brand awareness, including social media campaigns, native advertising, and content marketing. Because they are measurable and advertisers only pay for specific actions, some of these could actually be categorized as performance marketing.
How does performance marketing work?
It relies on four essential groups: Retailers, Affiliates, Affiliate Networks, and Third-Party Tracking Platforms along with Affiliate Managers. Together they create an effective system that helps realize the desired outcome. Each group is described as follows:
- Retailers, or as they are also referred to as Advertisers, rely on Affiliate Partners to promote the sale of their goods and services. Performance marketing is particularly efficient for healthcare marketers with a reputable brand and a highly informative website. This owes mainly to the fact that most consumers today do research beforehand involving reviews from influencers and other customers prior to purchasing.
- Affiliates, also known as “Publishers”, are a valuable form of marketing partner. They can take many different forms, such as AI, influencers, product review websites, blogs and more. Leveraging these partnerships can bring a plethora of benefits to brands - beyond the sale - such as brand exposure and customer loyalty. As affiliate marketing continues to develop through the progression of tech advances, it is essential to devise an individualized strategy and gain an insight into how each marketing partner operates best for successful execution.
- Affiliate Networks and Third-Party Tracking Platforms: These entities offer advantages for both merchants and affiliates. Popular platforms such as Partnerize, AWIN and PepperJam all provide strategic partners with the means to issue bonuses, send newsletters and monitor returns. Depending on a business's needs, different networks could work better than others, so it's essential to conduct research or get advice from an experienced affiliate manager or OPM prior to choosing one. Each platform presents its own pros and cons as regards cost structures, merchant vertical expertise, etc., so it can be difficult to identify which one is right for you.
- Affiliate Managers and Outsourced Program Management Companies (OPMs) are essential for connecting the merchant and affiliate. These can be handled by in-house teams or outsourced to a professional agency. Working with an experienced affiliate management firm is key for scaling performance marketing initiatives quickly and cost-effectively, as well as providing expertise in areas such as partner recruitment, growth strategies, long-tail program optimization, content creation, campaign management and more. Internal teams may lack resources, knowledge, existing connections and market reach - an external healthcare marketing company can supplement these shortcomings and expedite results.
It is important to plan ahead for success. Prioritizing tasks, setting goals, and measuring progress can be essential components of a successful strategy. Taking the time to strategize will help make sure you are getting the most out of your efforts.
Why performance marketing is important in a digital strategy?
Performance marketing is a digital marketing strategy in which advertisers pay only when a specific action is taken, such as a sale or lead generated. It's important because it provides a clear return on investment, as advertisers only pay for actual results. This aligns the interests of both the advertiser and publisher, as both parties only benefit when the desired action is taken. It also allows for real-time optimization and improved ROI through data-driven decision making.
Marketing agencies commonly use the RACE methodology to craft their plans, setting precise objectives and expectations while keeping their sights firmly set on attaining these goals. Rather than simply wishing for increased subscribers, we seek to attract 100 new followers on our health blog in a three month span. Ensuring you can track your progress is essential in achieving your objectives. To guarantee that what you are doing is working or needs to be adjusted, it’s helpful to set a detailed goal rather than one that is too broad. For example, aim to go from 50 new appointments each month to 75.
Having realistic goals is key. Consider if the goal is feasible and make assignments to ensure that your plans are realized. Identifying who will be responsible for executing your strategy will help you reach success.
