Performance Marketing

4 Key excerpts on "Performance Marketing"

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  eBook - ePub

  Understanding Digital Marketing

  Marketing Strategies for Engaging the Digital Generation

  • Damian Ryan(Author)
  • 2016(Publication Date)
  • Kogan Page

    (Publisher)

  Performance Marketing, unlike other digital disciplines, is not a single medium or method of marketing. It is a way of utilizing any and all digital channels to market a brand’s products or services, but where the brand only pays for the results achieved.

  This may sound quite vague at this point but the workings of Performance Marketing will become clearer as we progress through the chapter.

  Definition

  Sources such as Wikipedia do not have a decisive definition for Performance Marketing (such is the recency of the term’s adoption). It does have a definition for performance-based advertising though, which provides us with a good starting point: ‘Performance-based advertising is a form of advertising in which the purchaser pays only when there are measurable results’ (see: http://en.wikipedia.org/wiki/Performance-based_advertising ).

  Combine this with a definition of affiliate marketing and you start to get a flavour of what Performance Marketing is trying to achieve:

  Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’); the network (that contains offers for the affiliate to choose from and also takes care of the payments); the publisher (also known as ‘the affiliate’); and the customer’ (see: http://en.wikipedia.org/wiki/Affiliate_marketing ).

  By combining these two definitions, we can create our own definition for Performance Marketing:

  Performance Marketing is a type of performance-based advertising in which a business rewards one or more of its partners for carrying out some form of advertising or promotion of the business’s products or services, which results in a customer taking an action. The action is prescribed by the business, allowing them to ensure their advertising spend is delivering actual, measurable results.

  History

  Performance Marketing has been around since the dawn of the internet. Okay, not quite but very close. The first Performance Marketing programme (affiliate marketing, back then) was launched in 1994 by PC Flowers & Gifts. To put that into context, that is just three years after the invention of the web and a full two years before Larry Page came up with the idea for Google!

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  eBook - ePub

  Marketing Briefs

  • Sally Dibb, Lyndon Simkin(Authors)
  • 2007(Publication Date)
  • Routledge

    (Publisher)

  39: Performance Measures in Marketing Key definitions Marketing performance is the assessment of the effectiveness of marketing programmes to implement recommended marketing strategies, satisfy marketing objectives, fulfil corporate expectations and achieve the required levels of customer satisfaction. A performance standard is an expected level of performance against which actual performance can be measured. Sales analysis is the use of sales figures to evaluate a business's performance. Marketing cost analysis is the breakdown and classification of costs to determine which are associated with specific marketing activities to determine their worth. Customer satisfaction is a qualitative measure of marketing performance involving surveying customer views over time and benchmarking results against competitors’ scores. Brand awareness is a qualitative measure of marketing performance that determines whether a company's brands adequately capture the attention of their target markets. Key issues Marketing is an expensive activity and this activity must be justified. Marketing research, new product development and promotional activity are some of the largest expenditures within a business. Marketers require clear objectives against which their endeavours may be measured. Marketers must themselves be aware of specific objectives and strive to achieve them through their marketing strategies and marketing mix programmes. Marketers used to be judged primarily on the basis of their company's sales figures. Some businesses break down the marketing budget to allocate the costs of functional accounts to different budgets. These management accounts may be brand-based, product group-centred, oriented around markets, or focused on channels of distribution

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  eBook - ePub

  Business

  The Ultimate Resource

  • Bloomsbury Publishing(Author)
  • 2011(Publication Date)
  • A&C Black Business Information and Development

    (Publisher)

  Creative marketing activities will raise awareness and get your company noticed, but that may not be enough. The real aim is to build profitable long-term business, and that’s where marketing must make a greater impact. With the board demanding return on marketing investment, simply meeting targets for lead generation is no longer sufficient. Marketing now needs to demonstrate direct bottom-line responsibility. The marketing role is becoming more business-focused and aligned with higher-level business objectives. Marketers need to understand the overall business objectives and be in tune with what the business needs and what it wants to achieve. The emphasis today is on profitable business development as a long-term revenue generator, and measurement and metrics will play an important role in this transition. Marketing professionals who understand ROI are in a better position to justify marketing spend and demonstrate value to the business—a factor that’s key to gaining more respect and recognition within the organization.

  Introduce Marketing Performance Measurement

  If you measure marketing performance, you’re able to analyze and improve the efficiency and effectiveness of your organization’s marketing by aligning marketing activities, strategies, and metrics with business goals. Collecting the right data is essential and it’s also important to get agreement between marketing and senior management on the type of data to gather. The tools should be designed to measure both the short-term impact on sales and the longer-term value created by brand building in order to provide the total return on marketing investment. The objective is to identify the strategy that will drive the most sales and profits in the short term, while maximizing longer-term financial value. The right measures will provide a number of important benefits:

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  eBook - ePub

  How to Measure Digital Marketing

  Metrics for Assessing Impact and Designing Success

  • L. Flores(Author)
  • 2013(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  In the course of this book, we will try to provide various reference points, tools, and perspectives to enable all actors to better understand, manage, and optimize the effectiveness of their digital marketing. The core of our contribution is to define and explain the concepts, while putting into practice the use of metrics and quantitative or qualitative indicators to measure the effectiveness of digital marketing. The aim is to demystify the field, and thus allow all players, big and small, to develop a process, a discipline, and tools that will enable them to better ascertain the impact and ROI of their digital marketing.

  Key points

    Digital marketing is an evolved form of marketing, governed by a combination of push and pull.

    The effectiveness of digital marketing is crucial for profitability and sustainability for all players and the whole digital ecosystem.

    Measuring effectiveness goes beyond the simple “counting” that too often characterizes digital initiatives, and allows the attainment of the campaign’s objectives to be verified.

  Notes

     1    Cova, B. (2008) “Consumer made: when the consumer becomes producer,” Decisions Marketing , 50: 19–27.

     2    Since 2007, the US marketing consultancy Keller Fay Group has been attempting to quantify the magnitude of “word-of-mouth marketing”, and has shown that every year more than 80 percent of conversations about a brand occur offline rather than online – by telephone, face to face or among friends.

     3    The Top Priorities of CMOs in 2011: Ad Age CMO Strategy/Forrester CMO Group Survey, see http://adage.com/article/cmo-strategy/budgets-innovation-squarely-cmos-sights-2011/148070/ .

     4    For more information on the concepts of reliability and validity, see Farris, P. W., Bendle, N.T., Pfeifer, P.E and Reibstein, D.J. (2010) Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (2nd edn) Prentice Hall.

     5    In the specialist measurement literature, reliability and loyalty are synonymous.

     6    See the study carried out by the Kellogg School of Management, in Jeffery, M. (2010) Data-Driven Marketing: The 15 Metrics Everyone in Marketing Should Know , Wiley, p. 4.

     7    See the excellent book on the subject, Davenport, T.H. and Harris, J.G. (2009) Competing on Analytics: The New Science of Winning

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