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Performance Marketing – Knowing Where You Stand


W4 | W4 / April 20, 2018

There are many different marketing models and each one has its advantages. It takes time and deliberation to find the ideal model for your business and customer needs. Performance marketing is a good solution for companies that want to know exactly where they stand and what their marketing campaigns are achieving.

"Performance" refers to measurable user responses and/or transactions in the course of a campaign. This means that campaigns are evaluated under certain aspects, known as key performance indicators (KPIs).

Which KPIs should be evaluated?

The KPIs that are measured depend entirely on the goals of the company. Key KPIs can be, for example:
• Bounce rate
• Conversion Rate (execution of an action/business objective)
• Page views per session
• Page views (total)
• Channels (where does user traffic come from)
• Session duration
• Clicks etc.

How to measure KPIs

There is a variety of tools available to collect and evaluate KPIs. Some examples are Google Analytics or marketing automation tools such as Hubspot and Mautic. The results can be graphically displayed in different diagrams. Nothing stands in the way of comprehensive reporting.

Social media channels are catching up: more and more platforms are expanding their range of sponsored content and offer a comprehensive evaluation of individual campaigns. At LinkedIn, for example, Sponsored Posts or InMail campaigns can be created for specific target groups. Marketers automatically receive a detailed evaluation of the individual campaign's performance.

Tips for successful performance marketing

You should already have a clear idea of your objectives and KPIs before you start a performance marketing campaign. This will be of tremendous help if optimization measures become necessary. It also makes sense to define subgoals at the beginning of a campaign to get off to a good start. A A/B test run with a small budget is also a good idea to explore which campaigns are the most promising. If a campaign does not go as planned, that is no cause for concern. Small measures such as keyword adjustments or budget allocations can already lead to a large performance uptick.

Tags: Analytics

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