How Do You Measure Performance Marketing?
It’s easy to see why performance marketing is becoming increasingly popular.
Advertisers are naturally attracted to this methodology that only requires them to pay ad platforms or digital agencies if specific results are achieved. This setup ensures everybody has skin in the game and keeps the focus on running efficient campaigns that pay off.
For performance marketing to work, measuring every aspect of a campaign must be possible. Brands and marketing platforms need to be able to reliably determine whether performance goals are being met and to ensure that actions are being properly attributed.
If you’re attracted to performance marketing for your brand, you’ll want to connect with performance marketing platforms that offer resources for measuring campaign results.
Let’s look at some insights and guidelines to consider.
Top 6 Ways To Measure Performance Marketing
1. Start with a Clear Campaign Goal
Measurement can’t take place without well-articulated goals and key performance indicators (KPIs). Your campaign goal is the primary objective that you want a campaign to achieve. This goal might be increased website traffic or greater brand awareness.
Next, you have to determine the actions that need to take place to indicate that progress is being made toward that goal. KPIs that track these actions make it easy to determine whether a marketing campaign is achieving the intended objectives.
2. Identity the Data You Need
What information do you need to collect to measure your campaign? Here are some performance-based measurements:
- Page and site visits
- Return on ad spend (revenue generation)
- Geo performance (best performing regions)
- Creative performance (best performing ads)
- Publisher performance (best performing site or publisher)
It’s important to remember that measuring performance isn’t just necessary to determine whether payment threshold methods have been met. That should be a bare minimum goal. Performance data is necessary to optimize campaigns and create the best outcomes.
3. Understand the Tools and Reports
Whether you work directly with an advertising platform or via a marketing agency, your provider should have a set of dashboard tools and reports to help you get the insights you need into your performance campaigns.
As the marketing client, you should be empowered to use these tools and read these reports. You want your insights to come from the data, not another person’s interpretation of the data.
Learn what analytics tools are being used to track campaign performance. Review the reports that are available to you, and be certain that you understand the information those reports are communicating.
4. Collect, Measure, and Analyze
Performance marketing offers real-time data insights. It doesn’t take weeks or months to understand what is or isn’t working. This rapid insight means campaign optimization can occur much faster.
At the same time, performance measurement across the life of a campaign is also important. This aggregate data is information that can inform future campaigns.
Attribution is important to marketing campaigns. Proper attribution ensures that the right creative, social media platform, publisher, or channel is credited when a customer takes the desired action.
This attribution is also one of the most complicated aspects of performance campaign measurement. A potential client may encounter a brand’s marketing creatives on several different platforms using many different devices.
While remarketing is exceptionally valuable for keeping prospects in the marketing funnel, it can complicate things even further. So will the impending removal of third-party cookies.
Without a solid attribution model that takes into account the complexities of the customer journey and omnichannel marketing, there are going to be issues. Some marketing channels may receive credit for conversions they didn’t create. Others won’t receive the credit they deserve.
5. Optimize Campaigns
When you have the data and insights you’ve collected from measuring campaign performance, your next step is to optimize your campaigns based on that information. Here are some primary areas to target:
- Adjust Your KPIs
The performance data you collect may indicate that your KPIs aren’t quite what they should be. These indicators may need to be adjusted based on the information you gain from measuring your campaign.
- Improve Audience Targeting
Performance insights may reveal additional information about your target audiences. You may uncover new customer groups that you haven’t targeted or demographics that aren’t as engaged as you thought they might be.
In response to this understanding, you might rethink your marketing channels or the advertising creatives you use to reach your audience.
6. Focus on Revenue Generating Factors
The purpose of performance marketing is to get results. When you are determining how to set KPIs, choosing your metrics, and analyzing performance data, that is where your focus should be.
You should do any tracking and optimizing carefully to focus on the primary goal of increasing revenue.