According to recent studies, the global digital marketing sector is expanding at a 17.6% CAGR and is projected to be worth more than $930 billion by 2026. The expanding global population’s demand for digital media platforms is a crucial market driver. The report further states that the development in demand and popularity of social media platforms, as well as other digital marketing platforms, has been a primary driver in transforming the digital marketing business.
This is why it is becoming increasingly necessary to have a Performance marketing plan that is creative, flexible, and appealing to break through the noise. In addition to consumer acquisition, this method encourages virality, word-of-mouth, and organic growth. Performance marketing is a unique and strong strategy for developing a devoted user base by building the brand in a digital-driven era. It is a digital marketing strategy that is driven solely by results. It is ideal for brands that are looking for meticulous, detailed targeting and want to reach their audience at scale because payment is based on how their users interact with the content.
PERFORMANCE MARKETING- A KEY ELEMENT OF MARKETING
Performance marketing is exactly what it sounds like. Any statistic, such as sales, customer acquisitions, views, bookings, leads, or downloads, can be used to measure it. In performance marketing, digital automation and big data are utilized to develop more customer-centric and tailored campaigns. It provides marketers with all the resources they need to elevate and modernize their brand marketing.
Performance marketing is also defined as the use of clear and objective KPIs to make marketing more efficient and accountable.
BENEFITS OF PERFORMANCE MARKETING
The future of digital marketing is bright; leveraging performance marketing channels can assist the brand in scaling advertising efforts to suit the company’s needs without breaking the bank. Performance marketing is a creative and effective approach to diversifying the audience and improving the reach while collecting useful data. And the advantages don’t stop. When the business fully utilizes the capabilities of performance marketing to sponsor the marketing efforts, it will become easier than ever to build the product or service at full efficiency.
PANDEMIC HAS ACCELERATED THE GROWTH OF PERFORMANCE MARKETING
Before the pandemic, the shift from offline to online was occurring; however, the presence of covid-19 further expedited the traditional to the online platform. Humans are understandably wary of shopping in places where they might come into contact with someone afflicted with covid-19. Despite the reopening, business in such locations is still low. People still prefer to shop online rather than in-store.
As a result, there has never been a better time to engage in performance marketing. Brands can benefit from the fact that millions of consumers would prefer to purchase online. Statistics show that since the pandemic’s spread, global online sales have steadily increased. Online sales increased by an astounding 76 percent just last month. It has never been more important to attract these consumers with great content.
SUMMING UP
The rise in popularity of performance marketing has been a significant driver in the transformation of the digital marketing sector. Businesses that utilize performance marketing not only sell more in the short term but also understand where their target demographic congregates online. This knowledge, gained from consumer analytics, assists businesses in increasing long-term sales by indicating which marketing channel works best for them. As a result of more individuals than ever before spending time online, organizations now have the chance to build more broad and dependable marketing funnels.
This is why performance marketing is completely revolutionizing the digital marketing industry.
The author is VP, Strategy and Communication, ET Medialabs