What Is Performance Marketing & How to Get Started?

Groups in the performance marketing system

Before we get into what types of marketing are, we need to look at how this type of marketing works at all. There are 4 groups in the performance marketing system:

  • Merchants: In fact, they have the role of advertisers; People who want to promote their products and services need competent marketers.
  • Publishers or sales associates (affiliate marketers): They are affiliate partners in performance marketing and these partners can be review sites as well as social media influencers. A business may want to sell a certain item as soon as possible. Therefore, sales partners will play an important role in this cycle.
  • Affiliate Networks: Having this group is highly efficient for sales associates. In fact, affiliate networks allow publishers, influencers, and even businesses to explore a number of factors. These networks provide publishers with tools such as product feedback and payment links to better promote advertising strategies in the future. Affiliate networks provide strengths and weaknesses to experts in the field.
  • Affiliate Managers: Managers of marketing or sales collaboration agencies are the main intermediary between the publisher and the merchant, and most merchants turn to this group of people to start a partnership.

Types of performance marketing

Now that we are more familiar with the performance marketing cycle and its components, let’s look at what types of performance marketing or pragmatic marketing are:

  • CPM or Cost per Thousand: Cost per 1000 views to users
  • CPC or Cost Per Click: The cost per user click on an ad link
  • CPL or Cost Per Lead: Cost per registration or registration of information by each user
  • CPA or Cost Per Action: The cost per operation or purchase

Return on Capital Rate Formula (ROI)

You will be able to calculate this factor using a formula to get your rate of return or ROI. To get ROI using a formula, you need two quantitative factors: Net profit and advertising cost. If the rate is negative, you have lost money in the business, and vice versa.

Benefits of Accurate Measurement of Return on Investment (ROI)

By accurately measuring your rate of return, while not only realizing how much a customer is worth to a business in the long run, you can also focus on your audience’s behavior to see how your customers respond to marketing and are more willing. they give. Our customers attracted to your business product or service by using brochures and visual methods, or do “direct marketing” methods such as holding events and seminars motivate them to buy a product or use a service? By accurately calculating your ROI, you can also find out which type of marketing method can work best for your return on investment.

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