In recent weeks I have been concerned about the types of metrics and tools businesses and corporates use to measure the results of their digital ad spent and the accuracy thereof.
This came about noticing brands and big businesses utilizing multiple digital platforms to promote their product or service at the same time.
Now I got concerned about how do they then measure which digital advertising platform brought the sale they might have made after posting the ads to the public.
For example, if I have a new product called X, and I advertise on different platforms like Radio, TV, and Social Media, and run this marketing campaign concurrently. Then say hypothetically I make 50 sales at the end of the campaign. How do I measure which platform made me the sales? or if they all worked, which one worked more in percentages and reach?
With this quest in mind, I then asked some people I know who are in marketing, and this seemed to be quite a difficult question as all the people I engaged with were not even aware of the primary metrics used to measure these, and how to exactly know which platform between TV, Billboard, Radio, and Social Media influenced the customer to make the purchase? and is the money they pay to the agencies and these different platforms worth it? Is the ROI a true reflection of the completed desired result?
As I went deep into understanding this I came to realise that actually a lot of corporates and brands might be spending unnecessary amounts to advertise on digital platforms because it seems like it's the "in thing" when in fact there are a lot of dynamics in play when utilizing these platforms, especially when you run ads concurrently with traditional tools such as radio, television, and billboards.
So I figured that actually to find the best results and accurate measurements when engaging in digital marketing and advertising is to utilize Performance marketing.
Performance Marketing is marketing based on performance. This performance can be a range of desired results, can be a sale, lead, booking, or download.
What makes me believe that performance marketing is the best form of digital marketing is that as a merchant or business you only pay once your desired result has been completed. You do not pay prior, once your desired result is achieved that is when you pay. How wonderful is that?
Going back to my earlier example, if I target to make 50 sales, and only manage to make 20 - with performance marketing, I will only pay for the 20 sales made.
Unlike the other tools where you pay to make a target of 50 sales but if you fail to reach your target, you would've still paid the amount the agency/platform/affiliate/influencer had charged you prior to even having your desired result achieved.
This is a win-win marketing opportunity for both you as a business or merchant and the agency/affiliate/influencer as it allows both parties to truly target campaigns in a strategic, high ROI way, all based on performance.
With performance marketing, you pay exactly for what you can measure based on the completed desired result. This completely cuts off your unnecessary ad spent. This also eliminates the so "influencers" to rip you off by asking huge amounts of money for just posting on their accounts without you even being able to really measure the accurate ROI, the reach, and the number of potential customers who were "influenced" to make an action you desired.
So if you are looking into promoting your products/services via digital marketing/advertising, it is high time you consider performance marketing, as there is no other tool that works better than this one at this current moment.
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