How Does Performance Marketing Work In 2023?

How Does Performance Marketing Work In 2023? featured image
7 May 2023
Nirlep Patel
Performance Marketing

2023 has changed Our approach to Performance Marketing. Today, Technological advancements and Consumer satisfaction dominate the workings of performance marketing. But first, let us understand this unique form of marketing. Performance Marketing is an online form of marketing that focuses on immediate results. It is short term oriented where the advertisers ( Retailers, companies, brands) pay the advertising agencies only after the completion of an action. Which can be in the form of leads generation, sales, downloads, sign up for offers, websites or subscriptions. This unique form of advertising has gained immense popularity today as the advertisers make payments to affiliates or advertising agencies only when the desired outcomes are achieved.  Also, the retailer gets added exposure over various channels of promotion without spending zillions on marketing strategy.

 Online advertising is one of the most widely used forms of advertising all over the world and Performance Marketing acquires an important position in the world of online advertising.

Native/Display Advertising makes up the traditional forms of Performance Marketing and occupies a lower position on the pyramid. Technological Advancements and new machine learning algorithms have given birth to Social Media Advertising, Search Engine Marketing, and unique ways of sponsoring content, occupying the top position on the pyramid. The marketing tools like; Leads Generation, Cost Per Click (CPC), Pay Per Click (PPC), Paid content, Sales, Download, Free coupons, Subscriptions remain unchanged.  What changes in 2023 is the mashup of Performance Marketing with technological advancements?

Mobile and Performance Marketing :

Mobile Performance Marketing is one of the important channels of performance marketing today. A good performance marketing campaign has to execute well not only on laptops or desktops but also on mobile devices. The campaigns should play smoothly on all devices, hence the term Pan Device Marketing. Advertisers have to make sure that their campaigns align with mobile interfaces and achieve the same result which a laptop would do. A good mobile interface leads to an increase in app downloads.

Brand and Performance Marketing:

Brand Marketing and Performance marketing no longer work individually but in coordination as a team and have given rise to a new marketing approach called smart marketing. In this marketing approach, companies equally focus on its brand value and also its performance marketing strategy. Increased consumer awareness, technological advancements, and use of mobile devices have led to the collaboration of brand and performance marketing wherein strategies are created keeping in mind the desired results and the image and values of the company. Today, companies not only focus on increasing sales but also want their brand image, vision and values to be etched in the people’s minds. Video Marketing, Social Media and Paid Advertising ensure a consistent flow of content across all channels and are the ways of making smart marketing work. This omnichannel approach has not only increased the click-through rates but has also increased the ROAS of companies

Personalised and Conversational Content:

The major goal of every company is that its products and services speak to the people. They focus on user engagement leading to an emotional connection between the user and the brand. Performance Marketing campaigns are inspired by current situations in societies which leads to users resonating with the brand and increased click-through rates. For example, companies are using Covid-19 as a tool for selling products and services. Such personalised and conversational themes have changed the workings of Performance Marketing completely.  Employee engagement involves company employees talking about their work experiences and also reviewing various products and services of the company. Employees tag their company and company products and services on social media channels like Linkedin and Facebook, leading to the creation of interactive online communities. This unique Performance Marketing strategy has increased brand engagement with users. Interactive content in the form of Social Media contests, polls, and surveys are ways of creating brand conversation leading to increased ROAS.

Voice and Video  Search :

Voice search plays a huge part in increasing consumer engagement performance. Voice search makes searching faster and personalised. Alexa and Cortana can differentiate between human voices making search more personalised that leads to an increase in PPC rates. Voice Search interaction makes customer engagement with brands effortless increasing brand loyalty. Video marketing goes hand in hand with performance marketing.  Detailed and Crisp brand videos on platforms like Facebook and YouTube weave a story that generates users’ engagement with the brand and increases sales. It proves video marketing to lead to 80% conversion rates.

Influencer and Partnership Marketing

Influencer marketing is one of the most effective performance marketing strategies. Influencers are people having a high number of followers over social media channels like Instagram and Facebook. A good performance marketing strategy involves brands collaborating with influencers to promote their products and services. It can be from promoting a resort in goa to promoting a cool pair of jeans,  Influencers do it all.  They promote products and services in the form of social media stories, shoppable posts, video tutorials, reviews, etc. This strategy not only increases sales or lead generation for the brand but also increases the influencer popularity. 

Artificial Intelligence, Virtual Reality and Augmented Reality:

AI and machine learning are going to change the face of PPC marketing. AI and machine learning have replaced guess bidding with smart bidding that has helped to curate ads based on the company budget.  Further with AI will also help in understanding the user’s likes, behavior, choice of content and display user-specific content over search engines increasing CTCS. With the help of VR, users can take virtual tours of Schools, colleges, houses, etc. Which will lead to an increase in leads generation and sales . Companies using AR in their performance marketing campaign will encounter increased sales as AR technology will help users try on different products like cosmetics, furniture not only on themselves but also for their homes. Users can sit at home and decide their entire house furniture with the help of AR tech. Companies and brands using AR will not only see a boom in sales but also in popularity.

Performance Marketing no longer comprises a mere display of paid content. It is a well planned and constructed strategy involving the latest technological developments with the primary aim of consumer satisfaction. The trends mentioned are going to dominate not only in 2023 but also in future.