Advertising has changed a lot since the days of Doyle Dane Bernbach’s ‘Lemon‘ and the shift towards online marketing has recently shifted up a gear, or two, or three.
Gone are the days of finger in the wind measurement. With the analytics tools available to digital marketers it is possible to see where profit can be made, where the opportunities live and how much return on investment a particular campaign actually delivered.
Performance advertising is a philosophy. Its spirit resides in truth and effectiveness. By offering more transparency to the advertising ecosystem, performance advertising allows clever marketers to scale commercial returns in the channels that offer most profitability. This is especially relevant for E-Commerce advertisers as online media provide a direct link to their consumers’ purchase intent.
Digital marketers have a multitude of tools available from paid and organic search to direct response & programmatic display, as well as retargeting, liquid ads, product feed managed media, affiliate programs and email marketing available to them.
Firstly. when developing a media strategy, it is essential to identify how the final the media mix should rest at launch. However this is only half the job. By measuring impact across all channels and moving media spend into the highest performing channels in real time profitability, commercial effectiveness and Return on Advertising Spend (ROAS) can be increased.
Scale and CPA
By driving scale in conversions through the channels which are converting at an acceptable CPA and pulling back on areas which are less effective overall higher profitability can be achieved – this is the goal of any performance advertiser.
This is a step change for many online advertisers who promise visits and impressions instead of commercial return. Ultimately the goal of any performance campaign or ongoing activity has to be to make the advertiser more money – everything else, impressions, clicks, likes, shares etc. is a bonus.