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Why Performance has become a key part of Advertising?

From time to time I like to recall the way this industry has evolved over the past few years. It took time to get most of the small businesses...

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From time to time I like to recall the way this industry has evolved over the past few years. It took time to get most of the small businesses on board, much longer than it should have, but finally it’s getting there and when talking with business owners, not necessarily an online company, they all say that they put their entire advertising budget in online and I was glad to hear that they all track most of their Ads performance.
Because without keeping track on the Ads performance, I can tell you for sure, you are not getting the most of your money.

In 2010, while I was working in one of the country’s biggest portals, I remember myself finding leads by turning pages in a lot of newspapers, when I say a lot, I mean dozens of them every week. When I’d found the right leads, followed by a pitch why the Internet is a much better place to advertise than newspapers, I almost always heard the same, missing the point questions, and one in particular “how many people will see it?”. Then it occurred to me, these Advertisers who spent hundreds of thousands of dollars every year on advertising, don’t really understand advertising.

The idea of advertising is not meant to be shown with the biggest Banner or the most paid video commercial at the superball, advertising’s basic idea is to get clients to your business, first, and then how you do that can be done in many different ways. One of them can be a superball break commercial but it is pretty difficult to know how much exactly this ad influences your target audience to come by and shop for the product you want to sell.

So, the Advertisers’ question should have been, “How much business will it bring to me?”

Happily, most of the Advertisers out there understood that, it’s not all about seeing your Advertisement, it’s about seeing how each Ad performs, if it’s converting well and if the users you are receiving from each channel fit to your proposal.

So, what’s this performance thing and how can I do that too?

Basically, performance is to measure and monitor every step in the funnel from when the potential user sees an Ad until he converts into what’s your business goal. It’s in almost every place you can think of, everything is measured for performance. Google, Facebook and other sources provide data for each campaign you run with them. How many clicks and leads are only part of what you can monitor for performance, if you really want to get your performance to the top, my best suggestion is to measure all you can. When I say all, I mean every small thing you can think about! Today’s marketing tools allow you to do that with quick and easy integrations and useful webinars.
If you are an indie App developer or an online Startup, make sure you are receiving the most data possible from each campaign you are paying for. The more you track, monitor and optimize, the less you pay for non-converting users. 

Don’t aim for big and shouting ads, aim for performance

Today you are able to target your audience at almost every website or app they visit, plus you can advertise to your exact user persona and have the ability to choose when and where the ad would meet them. This is much more exciting than flashy TV commercial and will probably cost you a fraction compared to non-monitored campaigns.

Content is more important than performance

Having a great content will always get you users to your website but what has content to do with performance? More than you think. Performance has become a key part of content, big world-known content providers like BuzzFeed and others use a performance overview to better understand their engagement with their readers and today many online content providers create their content based on their content performance. If in the past newspapers or magazines were publishing according to their “I know what my readers want”, so today online websites understand that they should provide a content according to their performance insights of their website.

Native marketing, or in other words, Content marketing based on performance has also taken a huge step in the last few years. Unicorns like Taboola and Outbrain have been placed as a main advertising channel that delivers converting users as the content engages more people to the sales proposition.

Customized websites based on performance

More and more websites, especially e-commerce companies, are customizing their website appearance and workflows according to their users’ actions in their websites, in these companies they track what sections are more converting, how one promotion works better compared to another and they adjust their website accordingly to improve their performance.

What about Video performance?

Video advertising, probably the most emerging field in 2016, is expected to keep its steady growth this year, however it still seems that video isn’t based enough on performance rather on awareness and views, while this great channel that can have very high engagement rates, not enough companies are looking at it from the performance perspective. As the budgets keep growing in video we should hope performance implantation should increase as well, it will give us a better understanding and abilities in advertising with video ads.

Will it work for me?

Yes, not only App developers or Internet giants need to put performance first, but also boutique agencies, affiliate networks and any other platforms who advertise in the online fields.


That’s your money, make sure you get to most of it.

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