A study from the Internet Advertising Bureau reported that performance-based pricing has been growing every year, and had a growth rate of 66 percent in 2012, the fastest growth rate of any online pricing model. Here are some ideas on you can take advantage of this rapidly expanding advertising channel.
Get the Big Picture
First, take time to view your performance-based campaigns in relation to the bigger world of online and mobile offers. Watch what is being offered at CommissionJunction, ODigger.com and other large sites. In addition:
- Focus on metrics – constantly check your conversion rates and cost-per-action your budget allows.
- Split test – continually run A/B tests on your offers, ads, copy and landing pages. Technology makes it a snap to refine and improve the sales funnel.
- Experiment with new methods – run tests on a wide variety of platforms and offers. Never tried incentivized traffic before? Test it out. You never know what may work for your product or service.
- Take your time – there are plenty of options in the performance marketing space. If you blow all your money upfront, you won’t be able to take advantage of them. Grow slowly, and test constantly.
- Reach out and touch someone – get out from behind the computer and meet people at events. Despite the reliance on numbers, it is still a relationship business. This is especially important if you are a solopreneur. It helps to meet people in your field to balance the isolation of working alone.
Return On Investment
One reason performance-based marketing has grown so fast is it offers a clear ROI. To get the most bang for the buck, marketers must invest in the proper technology platforms to reach consumers and drive sales. While many marketers stick with affiliate networks, it is critical to evaluate all channels.
Look for technology partners that can scale, modify and grow with you through a variety of methods and approaches. You need centralized control and access to real-time data. Also ask potential partners about technical support and training—they become more important the faster your campaigns grow.
Performance-based marketing has emerged as a “power player” in the digital marketing landscape. Some industries such as retail and travel spend big in this field every year. By constantly testing new methods, growing slowly and finding the right technology partners, you can leverage your performance-based marketing to reach new customers, grow sales and increase profits.