How to Use Performance Marketing to Drive Real Business Outcomes
You can’t control everything going on in the world. You can only control how you react to it.
Individuals and businesses everywhere are learning to cope with the “new reality” that we’re facing. For marketers, this means taking a magnifying glass to all of your budgets and strategies to focus on efforts that are directly driving bottom-line impact.
At AdParlor, we understand the difficult decisions marketers are faced with to be successful in an ever-changing landscape. That’s why we launched a new Performance Marketing initiative – to help marketers through unprecedented times. Unlike a traditional agency structure, advertisers will only pay directly for business outcomes. We’ll cover the media spend and take the risk, so you only pay for the results that directly impact your bottom line.
The Benefits of Performance Marketing
In the last few decades, advertising has stayed remarkably consistent as a percentage of overall economic output. However, it doesn’t have to be that way. Enter Performance Marketing.
Under AdParlor’s new Performance Marketing initiative, advertisers will only pay when they receive directly attributable business outcomes. That includes (but isn’t limited to) purchase instances, new customers acquired, leads generated, app installs or in-app actions. Our team of experts will manage campaigns on your behalf across social and digital platforms. We’ll also build social-first creatives necessary to drive performance at scale.
Think about it. Gaining exposure and an understanding into the lifetime value of a newly acquired customer, lead generated, or even the total cost of a purchase to your business, can be profitable on every business result you drive. Your marketing campaigns can be completely de-risked in such an uncertain time period.
Real Businesses Driving Real Outcomes
Best use cases for advertisers
Now, let’s go a little deeper into some examples of how advertisers can make Performance Marketing work for them.
Let’s say you’re a marketer for at-home fitness company, Peloton. Your primary objective is to drive new customer purchases for your exercise bikes. You know the revenue you’ll generate from each purchase (currently starting at $2,245). Hopefully you have an understanding of your per-unit costs that you can build in to generate your profit per unit. Let’s assume it’s $1,000 profit per unit.
If you have a Performance Marketing partner who can help you acquire new customer purchases for you at under $1,000 per customer through successful digital marketing efforts, then you know every transaction is profitable per unit. You can invest in marketing to drive new customers at scale with the peace of mind that your investment is profitable.
For another example, let’s say you’re marketing for streaming app, Spotify. The focus of your marketing campaigns is to drive new users. You know your monthly revenue per customer (it’s $9.99/month). You also probably have a pretty good understanding of your customer lifetime value based on your subscriber churn rate. Let’s say that Spotify’s average customer LTV is $100. After adding costs of revenue (royalties they must pay out to artists/labels) and additional operating costs, let’s assume you have a $30 average profit per customer. Provided Spotify can acquire new users for under $30, they’re able to use performance marketing as a profitable engine for growth.
In both cases, these advertisers can almost completely de-risk their marketing investment while still driving business growth.
Is Performance Marketing for everyone?
Now, we don’t want to digress and say that our new Performance Marketing initiative isn’t designed for every marketer. But in some cases, not every marketer can leverage performance marketing to its fullest potential.
For example, if most of your business results are difficult to measure online, it won’t be an optimal strategy to only focus on those that can be effectively measured and optimized towards. Performance Marketing is also ideal for advertisers who are laser-focused on a single objective (say customer acquisition or new product purchases). However, If you’re a heavily brand-focused or full funnel advertiser, this model may not be the most optimal solution for you.
For a list of ideal verticals and objectives, check out our latest guide to Performance Marketing.
Next steps
Looking to de-risk your marketing spend in an uncertain time? Want to continue investing in advertising but focus on what drives tangible business results? Want to know if Performance Marketing is the right solution for your business?
Let’s chat. We’re here to help.
The post How to Use Performance Marketing to Drive Real Business Outcomes appeared first on AdParlor.
Related Posts
Categories
- 60% of the time… (1)
- A/B Testing (2)
- Ad placements (3)
- adops (4)
- adops vs sales (5)
- AdParlor 101 (43)
- adx (1)
- algorithm (1)
- Analysis (9)
- Apple (1)
- Audience (1)
- Augmented Reality (1)
- authenticity (1)
- Automation (1)
- Back to School (1)
- best practices (2)
- brand voice (1)
- branding (1)
- Build a Blog Community (12)
- Case Study (3)
- celebrate women (1)
- certification (1)
- Collections (1)
- Community (1)
- Conference News (1)
- conferences (1)
- content (1)
- content curation (1)
- content marketing (1)
- contests (1)
- Conversion Lift Test (1)
- Conversion testing (1)
- cost control (2)
- Creative (6)
- crisis (1)
- Curation (1)
- Custom Audience Targeting (4)
- Digital Advertising (2)
- Digital Marketing (6)
- DPA (1)
- Dynamic Ad Creative (1)
- dynamic product ads (1)
- E-Commerce (1)
- eCommerce (2)
- Ecosystem (1)
- email marketing (3)
- employee advocacy program (1)
- employee advocates (1)
- engineers (1)
- event marketing (1)
- event marketing strategy (1)
- events (1)
- Experiments (21)
- F8 (2)
- Facebook (64)
- Facebook Ad Split Testing (1)
- facebook ads (18)
- Facebook Ads How To (1)
- Facebook Advertising (30)
- Facebook Audience Network (1)
- Facebook Creative Platform Partners (1)
- facebook marketing (1)
- Facebook Marketing Partners (2)
- Facebook Optimizations (1)
- Facebook Posts (1)
- facebook stories (1)
- Facebook Updates (2)
- Facebook Video Ads (1)
- Facebook Watch (1)
- fbf (11)
- first impression takeover (5)
- fito (5)
- Fluent (1)
- Get Started With Wix Blog (1)
- Google (9)
- Google Ad Products (5)
- Google Analytics (1)
- Guest Post (1)
- Guides (32)
- Halloween (1)
- holiday marketing (1)
- Holiday Season Advertising (7)
- Holiday Shopping Season (4)
- Holiday Video Ads (1)
- holidays (4)
- Hootsuite How-To (3)
- Hootsuite Life (1)
- how to (5)
- How to get Instagram followers (1)
- How to get more Instagram followers (1)
- i don't understand a single thing he is or has been saying (1)
- if you need any proof that we're all just making it up (2)
- Incrementality (1)
- influencer marketing (1)
- Infographic (1)
- Instagram (39)
- Instagram Ads (11)
- Instagram advertising (8)
- Instagram best practices (1)
- Instagram followers (1)
- Instagram Partner (1)
- Instagram Stories (2)
- Instagram tips (1)
- Instagram Video Ads (2)
- invite (1)
- Landing Page (1)
- link shorteners (1)
- LinkedIn (22)
- LinkedIn Ads (2)
- LinkedIn Advertising (2)
- LinkedIn Stats (1)
- LinkedIn Targeting (5)
- Linkedin Usage (1)
- List (1)
- listening (2)
- Lists (3)
- Livestreaming (1)
- look no further than the new yorker store (2)
- lunch (1)
- Mac (1)
- macOS (1)
- Marketing to Millennials (2)
- mental health (1)
- metaverse (1)
- Mobile App Marketing (3)
- Monetizing Pinterest (2)
- Monetizing Social Media (2)
- Monthly Updates (10)
- Mothers Day (1)
- movies for social media managers (1)
- new releases (11)
- News (72)
- News & Events (13)
- no one knows what they're doing (2)
- OnlineShopping (2)
- or ari paparo (1)
- owly shortener (1)
- Paid Media (2)
- People-Based Marketing (3)
- performance marketing (5)
- Pinterest (34)
- Pinterest Ads (11)
- Pinterest Advertising (8)
- Pinterest how to (1)
- Pinterest Tag helper (5)
- Pinterest Targeting (6)
- platform health (1)
- Platform Updates (8)
- Press Release (2)
- product catalog (1)
- Productivity (10)
- Programmatic (3)
- quick work (1)
- Reddit (3)
- Reporting (1)
- Resources (34)
- ROI (1)
- rules (1)
- Seamless shopping (1)
- share of voice (1)
- Shoppable ads (4)
- Skills (28)
- SMB (1)
- SnapChat (28)
- SnapChat Ads (8)
- SnapChat Advertising (5)
- Social (169)
- social ads (1)
- Social Advertising (14)
- social customer service (1)
- Social Fresh Tips (1)
- Social Media (5)
- social media automation (1)
- social media content calendar (1)
- social media for events (1)
- social media management (2)
- Social Media Marketing (49)
- social media monitoring (1)
- Social Media News (4)
- social media statistics (1)
- social media tracking in google analytics (1)
- social media tutorial (2)
- Social Toolkit Podcast (1)
- Social Video (5)
- stories (1)
- Strategy (603)
- terms (1)
- Testing (2)
- there are times ive found myself talking to ari and even though none of the words he is using are new to me (1)
- they've done studies (1)
- this is also true of anytime i have to talk to developers (1)
- tiktok (8)
- tools (1)
- Topics & Trends (3)
- Trend (12)
- Twitter (15)
- Twitter Ads (5)
- Twitter Advertising (4)
- Uncategorised (9)
- Uncategorized (13)
- url shortener (1)
- url shorteners (1)
- vendor (2)
- video (10)
- Video Ads (7)
- Video Advertising (8)
- virtual conference (1)
- we're all just throwing mountains of shit at the wall and hoping the parts that stick don't smell too bad (2)
- web3 (1)
- where you can buy a baby onesie of a dog asking god for his testicles on it (2)
- yes i understand VAST and VPAID (1)
- yes that's the extent of the things i understand (1)
- YouTube (13)
- YouTube Ads (4)
- YouTube Advertising (9)
- YouTube Video Advertising (5)