Boost Your ROI: 5 Performance Marketing Tactics

Performance marketing is one of the most cost-effective trade techniques available. Unlike traditional online and offline ads, which may or may not result in conversions, using performance marketing means you’ll pay only when a customer engages with your advertisement by clicking on a link or visiting your website. 

Aside from greater advertising efficiency, companies also benefit from higher returns on investments (ROIs) from their performance marketing efforts than those that other strategies provide. With that being said, here are five performance marketing tactics you should consider employing in your next campaign:

1. Try Out Connected TV Advertising

Connected TV (CTV) is one of several newer performance marketing tools available. It involves displaying short-form commercials to people watching a movie or TV show on an internet-connected TV or streaming service. Though CTV advertisements are similar in concept to traditional television commercials, the latter offers far fewer targeting opportunities, whereas CTV marketers have greater control of their ads’ audiences.

A CTV ad can target specific sections of an audience, such as including people who previously interacted with your brand’s website, or they may target those who fit specific demographics, like location and age. According to recent connected TV trends, the performance marketing medium outperforms mobile video ads significantly, with nearly 71% of ad views occurring on a connected TV.

If you’re new to CTV advertising, try it out and compare your results with other marketing strategies. You’ll very likely see a higher ROI for your marketing budget with the right ads and messaging.

2. Blend Display Advertising with a Partner

Some industries form natural partnerships with organizations that serve similar audiences. For instance, before a house goes up for sale, a realtor may serve their clients by recommending a home improvement company that can remodel bathrooms and kitchens. Similarly, a local gym might partner with a nearby nutrition store that sells supplements to fitness enthusiasts.

Consider a display advertising partnership if your business provides products or services that serve a noncompetitor’s audience. You’ll recommend your partner’s services on their website and in person, and they’ll do the same for you. In exchange, you can reward each other with a percentage of revenue from the arrangement, making it an easy, low-cost way to increase your qualified leads.

3. Focus on Strategic Keywords in Your PPC Ads

Pay-per-click (PPC) ads are a common form of performance marketing, and though they may not necessarily be “new,” they’re still highly effective, which is why organizations continue to use them in their marketing strategies.

Setting up a PPC ad means selecting and incorporating keywords that are relevant to your organization’s goods and services into a compelling message that encourages consumers to click on your link. Usually, you’ll pay to run your PPC ads on a search engine like Google or Bing.

High-value keywords can cost several dollars or more per click, so choosing the correct terms is critical to increasing the ROI of this particular strategy. Spend some time looking for low-cost keywords that prospective buyers may use to search for your company’s products or unique terms with decent search volume that may enhance your campaign’s ROI.

4. Deploy Dynamic Marketing Tools

Dynamic marketing involves showing your ad to people who have recently engaged with your company, whether by visiting your website or interacting with your social media pages. Dynamic marketing is especially beneficial since you’re targeting someone who previously expressed interest — and is therefore already familiar with — your brand. All you need to do is just encourage them to take the next step.

You likely use pixels to track your customers across different platforms, such as your website, social media, and emails. You can integrate these pixels into your dynamic ads so they display exclusively to people who have viewed your products or shopped with you before. People who see your ad several times are likelier to act on it than someone who hasn’t seen it at all. 

5. Use Sponsored Advertising

If you sell your products on Amazon, take advantage of their sponsored advertising. You can lower your spending by incorporating first-party data to show ads to customers who already have a relationship with you. 

For instance, if a customer recently purchased a pair of boots from your company through Amazon, you can retarget them when they visit Amazon by featuring a coat you sell. Since sponsored ads can appear as native items in the user’s feed, customers may not notice that your content is even an ad, which can increase user engagement.

Performance Marketing Grows Your Revenues

With the right performance marketing strategies, you can increase your ROI from your ads. Carefully target your audience to find ways to use your first-party data to reduce your spending on cold leads, and if you can, form a partnership with businesses with similar customer bases to yours.