Performance marketing is a form of marketing where businesses or individuals only pay for results.
This means that you only pay when someone takes a desired action, such as making a purchase or signing up for a newsletter.
According to a new study, Spending on advertising is expected to climb in the years ahead.
Google and Facebook are the two most well-known biddable platforms. Their phenomenal growth was generated through advertising revenue.
Google, with 90% of the search market, generates hundreds of billions of dollars in advertising revenue each year. Bing, a subsidiary of Microsoft, has around 5-10 percent of the total search engine market share and ad inventory similar to Google’s.
As companies search for new platforms to expand their reach and discover new audiences on social media, online video, smart TV, and worldwide advertising expenditure is expected to rise by 5.7% in 2023 and 7.4% in 2024, reaching $225 billion.
Performance marketing platforms have experienced strong growth in recent years like:
- Increasing investment from businesses is evident through Facebook and LinkedIn’s YoY growth, with 38% and 20%, respectively.
- Google’s advertising revenue saw a 69% increase last year, with YouTube seeing an even higher growth of 84%.
- Even though one of the smaller revenue sources, SnapChat ad income increased by 47%.
This article will cover the basics of performance marketing, including what it is, how it works, career scope, and how to become a performance marketer.
What is Performance Marketing?
Table of Contents
- What is Performance Marketing?
- Performance Marketing Channels
- 1. Native Advertising
- 2. Sponsored Content
- 3. Social Media Advertising
- 4. Search Engine Marketing
- 5. Affiliate Marketing
- 6. Display Advertising
- Top Performance Marketing Platforms
- Performance Marketing Measurement and Pricing
- Business Growth Opportunity in Performance Marketing:
- Let us understand how you can make a Career in Performance Marketing
- Why choose a career in Performance Marketing in India?
- 1. The demand for performance marketers is growing
- 2. Performance marketing is a versatile field
- 3. You can work in a variety of industries
- 4. You can work in a variety of roles
- 5. You can work freelance or full-time
- 6. The earning potential is high
- 7. You can work from anywhere
- 8. You can get started without much experience
- 9. You can upskill easily
- 10. You can make a difference
- Why choose a career in Performance Marketing in India?
- Performance Marketing Jobs
- Skills required to be a Successful Performance Marketer
- 1. Performance marketing is a data-driven field
- 2. Know SEM
- 3. Understand attribution modeling
- 4. Be comfortable with change
- 5. Have strong analytical skills
- 6. Learn Content, Social Media, and/or Affiliate Marketing skills
- 7. Stay up-to-date with the latest trends
- 8. Creative skills for ad creation purposes
- 9. Have design skills for creating effective landing pages
- 10. Know relevant performance marketing tools
- How to become a successful Performance Marketer
- 1. Use Resources:
- 2. Experience:
- 3. DigitalVidya’s Digital Marketing Bootcamp, Pay After Placement Program:
In a nutshell, it’s a type of marketing that focuses on results. This could mean sales, leads, or any other desired outcome.
Performance marketing is all about ROI. And because of that, it’s often seen as a more measurable and effective form of marketing than other types.
Advertisers only pay for leads or sales that are generated from the ads.
Performance marketing is also known as cost-per-action (CPA) advertising, and it is a popular form of online advertising for small businesses.
The use of biddable media in performance marketing ensures that your ad reaches the right audience and that you only pay for results.
This makes performance marketing a very effective and efficient way to grow your business.
As per the Performance Marketing Association:
“Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers and marketing companies are paid when a specific action is completed; such as a sale, lead or click.”
Performance Marketing Channels
- Native advertising
- Sponsored content
- Social media advertising
- Search engine marketing
- Affiliate marketing
- Banner (Display) Ads
- Biddable Media
1. Native Advertising
Native advertising is a form of online advertising that is less intrusive than other forms of online advertising.
It generally takes the form of an article, video, or image that is created by the advertiser and published on a platform such as a website, social media site, or email newsletter.The goal of native advertising is to blend in with the surrounding content so that it doesn’t appear to be an ad.
Native advertising can be a great way to reach your target audience without being too “in your face.”
2. Sponsored Content
Sponsored content is a form of online advertising where the advertiser pays to have their content published on a platform such as a website, blog, or social media site.The goal of sponsored content is to promote something relevant to the audience of the platform on which it is published.
For example, if you are sponsoring a post on a blog about health and fitness, your sponsored content would ideally be about health and fitness.
3. Social Media Advertising
Social media advertising is a form of online advertising that uses social media platforms to promote a product or service.
The most common social media platforms for advertising are Facebook Ads Manager, Instagram Ads, Twitter Ads, and LinkedIn Campaign Manager, Quora Ads Manager.Social media advertising generally takes the form of sponsored posts or ads that are shown to users who are deemed likely to be interested in the product or service being promoted.
4. Search Engine Marketing
Search engine marketing (SEM) is a form of online advertising and biddable media that uses search engines to promote a product or service.
SEM generally takes the form of paid ads that appear at the top of search engine results pages (SERPs).The goal of SEM is to get your product or service in front of people who are searching for it.
5. Affiliate Marketing
Affiliate marketing is a form of online advertising where businesses pay affiliates (individuals or companies) to promote their products or services.
Affiliates earn a commission for each sale they generate.The goal of affiliate marketing is to get more people to buy a product or service by using the power of word-of-mouth marketing.
6. Display Advertising
Banner ads are a form of online advertising that takes the form of an image, video, or animations. It can also be done through Google Ads as part of SEM.
Banner ads are generally shown on websites, social media sites, and email newsletters.The goal of banner ads is to get people to click on them and visit the advertiser’s website or landing page.
Top Performance Marketing Platforms
Performance marketing platforms are networks or platforms where you’ll set up and execute your performance marketing campaigns. The following are some of them categorized by channel:
- Native Ads
- Facebook Audience Network
Social Media Advertising
Search Engine Marketing
- Google Adwords
- Bing Ads
- Yahoo Ads
- Max Bounty
- CJ Affiliate
- Google Marketing Platform
Performance Marketing Measurement and Pricing
1. Cost Per Click (CPC)
CPC is the most common pricing model for performance marketing. You only pay when someone clicks on your ad.
2. Cost Per Impression (CPM)
CPM is a pricing model where you pay for every 1,000 impressions of your ad.
3. Cost Per Sales (CPS)
CPS is a pricing model where you pay for each sale that is generated from your ad.
4. Cost Per Leads (CPL)
CPL is a pricing model where you pay for each lead that is generated from your ad.
5. Cost Per Acquisition (CPA)
CPA is a pricing model where you pay for each acquisition or sale that is generated from your ad.
Business Growth Opportunity in Performance Marketing:
There are a variety of performance marketing channels you can use to reach your target audience.
Performance Marketing can be a gold mine for any business, provided it’s done right.
Its size, it’s global reach and it’s relatively low cost make Performance Marketing an attractive proposition for businesses of all sizes.
According to a GroupM prediction, digital will surpass television in 2022.
This year’s advertising expenditures are anticipated to be worth Rs 107,987 crores in India.
According to Business Standard, the ad spend was ₹88,334 crores in 2021.
When done correctly, Performance Marketing can result in a higher ROI than other marketing channels, making it an essential part of any marketing mix.
Here are some stats about different Performance Marketing channels:
- Paid search advertising, on the other hand, generates twice as many visitors as SEO.
- Ads have the potential to increase brand awareness by up to 80%. By 2022, it is estimated that 54% of ad expenditures will be online.
- The majority of customers click on PPC advertising (65%). Retargeting increases the chance that consumers will buy your product by 70%.
- Combining similar audiences with display retargeting advertisements may improve conversion rates by more than 40%. The Google Display
- Network, which has over 2 million websites, is the most popular PPC network.
- 9.21% of Facebook ads convert to sales, making it the most successful platform for advertising available.
According to Global Statistics, 46.7 million people use social media (Deloitte).
According to Statista, It is expected that there will be 1.5 billion smartphone users in the country by 2040.
The current smartphone-using population that engages with Instagram is 76.5%, which is more than those who use Facebook or Twitter, Therefore, it’s likely that these numbers will continue to rise in the coming years.
The growth rate of Performance Marketing is impressive and it’s only going to continue to grow in the coming years.
So what are you waiting for? Get started with Performance Marketing today!
Let us understand how you can make a Career in Performance Marketing
Why choose a career in Performance Marketing in India?
Digital marketing jobs are on the rise in India. Here are some of the reasons why you should consider a career in digital marketing:
1. The demand for performance marketers is growing
With the increasing popularity of the internet and mobile devices, more and more businesses are looking for ways to reach their target audiences online. As a result, the demand for digital marketers is growing.
2. Performance marketing is a versatile field
There are a variety of different digital marketing channels that you can use to reach your target audience. This means that you can find a job that suits your skills and interests.
3. You can work in a variety of industries
Because digital marketing is such a versatile field, you can find jobs in a variety of industries. Whether you’re interested in working in the tech industry, the fashion industry, or the food industry, there’s likely a digital marketing job for you.
4. You can work in a variety of roles
There are many different digital marketing roles that you can pursue. Whether you’re interested in working as an SEO specialist, a social media manager, or a content marketer, there’s a job for you.
5. You can work freelance or full-time
If you’re interested in working as a freelancer, there are plenty of opportunities available. Alternatively, if you’re looking for a full-time position, there are also many options available.
6. The earning potential is high
Digital marketers with experience and skills can earn high salaries.
7. You can work from anywhere
One of the great things about digital marketing is that you can often work from anywhere. Whether you want to work from home, in a coffee shop, or even on the go, there are many opportunities available.
8. You can get started without much experience
Unlike many other fields, you don’t need years of experience to get started in digital marketing. If you have the right skills and motivation, you can start your career without much experience.
9. You can upskill easily
With the ever-changing landscape of digital marketing, it’s important to keep your skills up-to-date. Luckily, there are many resources available that can help you upskill easily.
10. You can make a difference
Digital marketing can be used to promote good causes and make a positive impact on the world. If you’re passionate about making a difference, a career in digital marketing may be perfect for you.
Performance Marketing Jobs
1. Search Engine Marketing Specialist
Search engine marketing can assist firms in growing quicker. This form of digital marketing is dependent on sponsored advertisements.
It may produce higher conversion rates and click-through rates in a short time than other online marketing strategies. According to AmbitionBox, SEM experts’ annual salaries range from ₹ 4.2 lakhs to ₹ 42 lakhs.
2.Social Media Advertising Manager
Social media advertising managers are in charge of developing and implementing social media ad campaigns for a company’s various platforms.
They manage editorial calendars, keep track of ad campaign performance, and much more. According to AmbitionBox, the typical salary for this role is between ₹ 1.5 lakhs and ₹ 19.4 lakhs.
3.Programmatic Advertising Specialist
Programmatic advertising specialists are responsible for developing and executing programmatic ad campaigns. They work with data to target the right audience and optimize performance.
According to Glassdoor, the average base pay for this role is $79,928 per year. A Programmatic Specialist in India typically earns ₹10,92,247 annually.
Skills required to be a Successful Performance Marketer
1. Performance marketing is a data-driven field
To be successful in performance marketing, you need to be comfortable working with data. You’ll need to be able to track campaign performance, analyze data, and make decisions based on your findings.
2. Know SEM
SEM, or search engine marketing, is a form of digital marketing that focuses on paid advertising. If you want to be successful in performance marketing, it’s important to have a solid understanding of SEM.
3. Understand attribution modeling
To track the effectiveness of your marketing campaigns, you’ll need to understand attribution modeling. This involves assigning a value to each touchpoint in the customer journey, from awareness to conversion.
4. Be comfortable with change
Performance marketing is an ever-changing field. To be successful, you need to be comfortable with change and be able to adapt quickly to new trends and technologies.
5. Have strong analytical skills
As a performance marketer, you’ll need to have strong analytical skills. You’ll need to be able to analyze data, identify trends, and make decisions based on your findings.
6. Learn Content, Social Media, and/or Affiliate Marketing skills
Performance marketing is a broad field, and there are many different specialties within it. To be successful, you’ll need to learn one or more of these specialties. Content marketing, social media marketing, and affiliate marketing are all popular choices.
7. Stay up-to-date with the latest trends
Performance marketing is an ever-changing field, and new technologies and trends are constantly emerging. To be successful, you need to stay up-to-date with the latest trends and be able to adapt quickly to new technologies.
8. Creative skills for ad creation purposes
Although performance marketers use data to drive their decisions, they also need to be creative.
This is because a big part of performance marketing is creating effective ads. To be successful, you’ll need to be able to create compelling ads that grab attention and drive results.
9. Have design skills for creating effective landing pages
In performance marketing, the goal is to get people to take the desired action, such as clicking on an ad or filling out a form. To do this, you’ll need to create effective landing pages that are designed to convert. To be successful, you’ll need to have strong design skills.
10. Know relevant performance marketing tools
There are a variety of performance marketing tools available, and to be successful, you’ll need to have a working knowledge of some of them.
Google Analytics and Google AdWords are two of the most popular performance marketing tools.
Other popular options include Crazy Egg, Kissmetrics, and Optimizely. Canva and Unbounce are also popular design tools that performance marketers use to create effective landing pages.
How to become a successful Performance Marketer
If you want to become a successful performance marketer, there are a few things you can do-
1. Use Resources:
There are several resources you can use to learn performance marketing. You can start by reading articles and blog posts about the subject. You can also take free online courses or even consider pursuing a degree in marketing.
There’s no substitute for experience. The best way to learn performance marketing is to get out there and do it.
Start by working on small projects for your friends or family. Once you have some experience under your belt, you can start working on larger projects.
3. DigitalVidya’s Digital Marketing Bootcamp, Pay After Placement Program:
The DigitalVidya’s Digital Marketing Bootcamp, Pay After Placement Program is a great way to learn performance marketing. The 3 month instructor-led online program includes live online classes and 100% practical experience. After completing the program, you can expect a min CTC of Rs 4.5 LPA.
If you want to become a successful performance marketer, there are a few things you can do.
Use resources like articles, blog posts, and online courses to learn about performance marketing.
Get experience by working on small projects and consider taking a course like the Digital Vidya Pay After Placement Program to gain practical experience. With some effort, you can develop the skills you need to succeed in this field.
1. What is the scope of a performance marketing career?
The scope of a career in performance marketing is very wide. You can work in several industries, including advertising, search engine marketing, PPC, eCommerce, and more.
2. What are the skills required for a career in performance marketing?
Some of the skills required for a career in performance marketing include analytical skills, creativity, and the ability to think outside the box.
3. What are the best resources for learning performance marketing?
Some of the best resources for learning performance marketing include articles, blog posts, online courses, and even degrees in marketing.
4. What is the best way to get experience in performance marketing?
The best way to get experience in performance marketing is to get out there and do it. Start by working on small projects for your friends or family. Once you have some experience under your belt, you can start working on larger projects.