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| What is Performance Marketing? |
When the COVID-19 virus first emerged in January 2020, many thought it was just a passing pandemic. Like the previously prevalent MERS and SARS, Corona 19, which we thought would get weaker over time and even a vaccine would be developed, has not disappeared as of July 22, and is still living with us. Do you know the meaning of AC and BC? Based on the birth of Jesus, before Christ BC stands for Before Christ, and after Christ AC stands for Ante Christum. However, AC and BC are sometimes interpreted differently by marketers these days.
After Covid-19 (AC), Before Covid-19 (BC)
COVID-19 has affected many areas of our lives and has undergone many changes. The marketing market has also undergone many changes after Corona 19, and now it is difficult to survive with the marketing method before Corona 19. In the four consumption trends that Corona 19 has fundamentally changed by the Google newsletter channel Think with Google, 'The most easily understood phenomenon among the changes caused by COVID-19 is the explosive increase in the use of digital purchase channels centered on e-commerce. did it,' he says.
As the digital marketing market grows rapidly, the importance of performance marketing is also growing. Marketers have been expanding the influence of performance marketing for several years, but this has been accelerated by the COVID-19 pandemic.
To add to the exaggeration, if you can't do performance marketing, you can be left behind as a marketer. Therefore, performance marketing is also suitable for those who are studying marketing and trying to create better results, such as marketers or college students who dream of becoming marketers, job seekers, office workers thinking of changing jobs to the marketing department, entrepreneurs who have started a business but have no idea how to make a performance. recommend
What is Performance Marketing?
Performance marketing is a performance-oriented marketing strategy that sets goals for performance and proceeds and improves work to achieve the performance. Unlike offline marketing, online marketing can measure performance anytime, anywhere. We can capture customers based on a variety of performance indicators such as keywords, which pages have the most traffic, impressions, clicks, and conversions.
Performance Marketing Business Process
In order to proceed with performance marketing, you need to know what kind of work you need to do. Marketing goals must be set for performance measurement, data analysis, and problem identification are required to achieve the goals, and problem improvement measures and advancement work are required.
For example, suppose there is company A that opened a web page last year. Company A aims to increase the number of natural inflows of web pages this year by 10% compared to last year. As a result of checking the status of web pages last year, it was confirmed that the natural inflows from product detail pages were significantly lower than that of other competitors. After reviewing the product detail page, I found that there was no search engine optimization done at all and the product-related content was significantly lacking. Therefore, this year, we set up a plan to create content that contains customer needs through search engine optimization (SEO) of product detail pages and keyword research.
Goal setting
- The number of natural web page inflows increased by 10% compared to last year
Data analysis and problem identification
- Low natural inflow from product detail pages compared to other competitors
- Product detail page search engine optimization not applied
- Lack of product-related content on the product detail page
Problem improvement plan and advancement
- Search engine optimization (SEO) of product detail page
- Creating content that meets customer needs through keyword research
Basic Qualities of a Performance Marketer
Through the performance marketing work process, we can identify what qualities we need as a performance marketer. Planning ability to achieve the set goal, understanding and analysis ability of data to be analyzed for marketing planning, and finally persistence and passion to complete the task to the end are required.
Planning ability to achieve goals
Company A has set a target for this year to increase the number of natural web page inflows by 10% compared to last year. In order to increase the influx of customers to achieve this goal, it is necessary to have a planning ability to induce customers to click on existing or new content.
Ability to understand and analyze the data to be analyzed
How was it possible to find the issue of insufficient SEO and lack of content on the product detail page as a problem with Company A's website? There are various indicators that can be checked when monitoring the website status, such as how much CPC is, whether web page SEO is well applied and whether visitors are converting well.
In order to identify the problem, the performance marketer must be aware of the relevant indicators, and among them, it is necessary to analyze the data by determining which indicators are needed for the current project.
Perseverance and passion to achieve results
In order to improve Company A's problems identified through data analysis, it will be necessary to create improved content through SEO progress and keyword research. Even if the work is carried out as planned to improve the problem, good results cannot be obtained every time. Since it is a performance-oriented job, if the efficiency is low compared to the working time, there are many cases of lethargy and loss of self-confidence. You are not wrong. It is a growing pain that many people experience to become great marketers. If you continue to work with persistence and passion despite continuous failure, you will be able to see yourself recognized as a performance marketer at some point.
Pros and Cons of Performance Marketing
Performance Marketing Advantages
First, performance marketing is efficient in optimizing budgets, that is, advertising costs. Through data analysis, it is possible to identify issues such as which advertisements are performing well and which advertisements are less efficient compared to advertisement cost. This allows you to allocate your advertising budget efficiently.
Disadvantages of performance marketing
First, performance marketing is too expensive for advertising. Although it is said that efficient advertising operation is possible due to the merits of performance marketing, it contradicts itself and incurs a lot of marketing costs. Although there are various keywords related to products or services in a specific industry, among them, the number of key keywords that customers search a lot is small. In addition, as the online market grows rapidly after Corona 19, advertising costs such as CPC and CPM for major keywords are increasing.
Second, even if performance marketing is conducted through advertisements, customers do not necessarily use products or services. Even if a customer comes to a web page through a specific keyword advertisement, if the web page does not contain the content the customer wants or if a product or service other than the keyword searched for is exposed, the inflow will not increase no matter how many advertisements are used. Therefore, the most efficient keyword advertising budget should be allocated through data analysis rather than reckless keyword advertising.
Strategies for great performance marketing
In order to attract customers to your website in the online marketplace, you must first appear on the first screen of search results. About 95% of customers who come to your page come from the first page of search results. Therefore, many marketers run keyword advertisements that are exposed at the top of the first page.
Keyword advertising is one of the marketing strategies that marketers cannot quit even these days when advertising costs continue to increase because they can have a great effect in the short term. However, if you stop keyword advertising, the web page will no longer be displayed on the first screen of the search results, resulting in a sharp drop in performance.
Also, keyword advertisements alone cannot bring about stable inflow. According to the data below, it can be seen that the number of clicks between Paid Results (AD) and Organic Results (natural flow) differs by about 20 times. In other words, you can expect higher performance if your website is exposed on the front page by itself rather than through advertising. When it comes to performance marketing, many marketers only think of keyword advertising, but there are many ways to increase performance in the online market.
In this article, we recommend two strategies to get customers to come directly to your website through the keywords they searched for, rather than through ads.
SEO (Search Engine Optimization)
SEO (Search Engine Optimization) refers to a series of tasks that improve the structure or content of a website in consideration of the characteristics of algorithms so that search engines can positively evaluate websites and web pages and expose them to the top. If you improve your website through SEO, you can display it on the first page of search results without keyword advertising. The biggest advantage of SEO is that there are no marketing costs.
Only by improving the website structure and creating high-quality content, it is possible to display high search results. Keyword advertisements are exposed only to designated keywords, but websites that have undergone SEO can respond to all keywords related to content.
Intent Marketing
Intent marketing (intent marketing) is marketing that provides products, services, or information that customers want by accurately understanding the intentions that customers are implicitly expressing. According to Peter Drucker, the purpose of marketing is to “discover the unmet needs of consumers and come up with ways to satisfy them”.
From this point of view, I think that intent marketing is perhaps the most faithful marketing for the purpose of marketing. Marketing that accurately understands and preemptively provides customers' intentions and marketing that is conducted through data analysis such as CVR (conversion rate), DAU, and MAU without understanding the customer's intentions will inevitably have different results.
Which of the push-type marketing communication activities through advertising campaigns or marketing communication that responds preemptively after identifying customer intentions do you think can provide a higher ROI to the company?
Concluding the article...
In this article, we looked at what performance marketing is, the work process, the qualities of a performance marketer, the pros and cons of performance marketing, and strategies for performance marketing. Many marketing companies emphasize only improving performance through advertising when training in performance marketing.
Perhaps that is why there are many marketers who understand performance marketing for the purpose of efficient advertising and work. But advertising is not the only way to increase performance. Through this article, I hope that marketers can achieve dramatic results by breaking away from the stereotype that advertising is the only way to increase their performance.
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