Even some big brands are now finally acknowledging that performance based marketing is much more effective not only because it’s results based, but also for being so cost effective. When performance marketing is done correctly, using specific targets, it becomes much easier to find those pockets of profit.
Performance marketing also known as the dreaded…”affiliate marketing” blah ugh cough…gross~(I can’t even believe people still do that! hint hint wink wink nudge nudge) is when advertisers which are retailers or merchants & marketing companies such as affiliates or publishers are paid when a specific action is completed. This could be anything from a sale of a product, capturing of a lead like an email, address, & telephone number. Or it can even be for just simple app installs or clicks to a banner like how an advertising network would make money.
Traditionally, advertising fees are paid up front regardless of how the campaign performs. Remember those good ole’ days ahem…Don Draper?! That business model is slowly dying and I can tell you we saw evidence of that when McDonald’s awarded $1 billion in ad business to Omnicom. “The review had proved contentious, with McDonald’s reportedly insisting that its agencies would have to work at cost, with profits tied to unspecified performance goals.”
When a company as large as McDonald’s recognizes that it may be time to change up their marketing routine, that means this performance thing is catching on then right? I for one think it’s about time. I’m on the ad networks every day & I can tell you I still see tons & tons of branding advertising. These ads are just like static billboards that don’t have any call to action, an offer or any compelling reason for a user to click or tap on these ads. I mean, unless you already know what the Let Go app does…why would you click on it? Let Go of what? My insecurities, my grudges from a fight I had with a coworker?! What the hell do they mean? What the frig are they talkin’ bout?! Should I tap that stupid thing? Meh, forget it, I gotta go to lunch.
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