Performance marketing is a model that’s gained increasing popularity in recent years. You can see this just by looking at the industry spend on influencer marketing, which is projected to surpass $6.8 billion in 2020.
In an age of increasing competition in the e-commerce industry, it’s more important now than ever to have a solid marketing strategy to help yourself stand out in such a crowded space. Statista is projecting that more than 22 percent of all retail sales will be through e-commerce by the year 2023.
If you have an e-commerce store, the value that a performance marketing agency can bring to the table is something you should seriously consider. With an ROI-focused approach where you only pay for results that you actually get, it has become an increasingly attractive option for online business owners.
What is a performance marketing agency?
A performance marketing agency is exactly what it sounds like: an agency that focuses on performance first.
It can differ slightly among different agencies, but the thing they all have in common is the pay structure. Any Facebook ad agency or other marketing company that deploys a performance marketing strategy will only charge you as their client for deliverables that you actually receive.
This may be a pay per click, lead, sale, or another metric that is determined between you and the agency. This allows you to know that your money is being well-spent.
Rather than paying upfront for a marketing package that guarantees no results, you only pay once the agency accomplishes the metrics that are agreed upon at the start.
This really becomes a win-win for both you and the agency, as it keeps the focus entirely on ROI and performance.
How is performance marketing different from influencer marketing?
You can think of influencer marketing as a subset of performance marketing. Typically, brands will pay an influencer to promote their product and give them a commission based on how many purchases they get or leads they can generate.
You’ll see this often on social media. Sometimes companies will pay an influencer just to talk about a product, and other times it is set up as an affiliate marketing program, another form of an advertising program. That means the influencer gets paid a commission for each sale or lead that they can generate for the product or service.
This is a part of performance marketing, but there is a lot more to it than that. In a larger performance marketing strategy, you’ll see influencer marketing, search engine optimization, paid adwords search marketing, email marketing, and any other strategy that involves commission payouts for sales or other desired outcomes.
How does performance marketing work?
At its core, performance marketing is relatively simple. You, as a retailer, will partner with an affiliate or “publisher,” as its sometimes called. In some cases, this is an individual person, but more than likely you will have a network of these affiliates to help market your product.
That’s another place that a performance marketing agency can help. They can work to manage these affiliates, track their analytics, and help you stay on top of how much ROI you’re actually generating.
It’s certainly possible to do this on your own, but it isn’t scalable. You need to run your e-commerce business, and managing a group of affiliates can take a lot of work.
In addition, performance marketing has come to stem beyond just social media influencers. You’ll find examples of it in the blog space, email marketing, and even paid advertising (PPC).
The important thing to keep in mind is that focus on results first. A good performance marketing strategy will prioritize your ROI above everything else, which will help drive results.
Why is performance marketing important for e-commerce?
The biggest reason for this is simply the rapid increase in competition. In the coming years, eMarketer is predicting 76 percent of brands will increase their spending on e-commerce in the coming years. As more and more brands are throwing money into the space, the costs associated with advertising and marketing will continue to increase.
A simple digital marketing strategy isn’t going to be enough moving forward. With dozens of other businesses vying for your customers, you need a marketing strategy that can continue to produce results in an increasingly competitive marketplace.
You can’t just have content creation for your website and your own social media accounts and expect to get the traffic and results you’re looking for. Moving forward, digital marketing is going to require an aggressive, ever-evolving strategy that leverages various forms of creative and media to drive consistent results.
In addition to increasing competition, the algorithms for marketing channels change constantly. Even for agencies who work in the space full-time, it can be hard to keep up. Facebook and Instagram’s organic reach is changing constantly, and Google changes the rules for search engine marketing (SEO) all the time.
Without a Facebook ad agency to help you keep up in real time, you’ll quickly fall behind the competition. Just because your strategy has worked for the last few months doesn’t mean it’s going to keep working. Facebook or Google could make one decision to change their algorithms, and it could make an amazing strategy near useless overnight.
With a performance marketing agency, your success is tied to their success. If their campaign stops bringing your business sales and new lead generations, they have to change it up in order to keep getting paid. This keeps everyone focused on driving new sales, traffic, and maximizing your return on your investment.
Can I do my online marketing myself?
We get this question a lot from small business owners. We get it—marketing is expensive, and in a world of social media, it doesn’t seem difficult to just handle that internally.
This is an attractive option when compared with traditional marketing packages, but in truth, there’s not a reason to take this route over working with a performance marketing agency. The advantage of performance marketing is that you are able to only pay for results that you actually get.
You don’t have to worry about paying for a big marketing package that yields you little to no results. Instead, you know that every dollar you spend is coming back to you at double, triple, or even 10x what you initially spent in some cases.
How to start with performance marketing?
In order to get started in the world of performance marketing, the first thing you need to do is find an agency that you can trust. Whether they are primarily a Facebook ad agency, video marketers, or their focus is influencer marketing, you want to see proven results.
For example, here at MuteSix, lead generation is reported at more than $1 billion in trackable revenue for our clients, and 82 percent of them double their investment within the first year.
Although you only pay for the results you get, your time is just as valuable as your money. You want to be working with a digital marketing agency that you know can deliver on what they promise.
There are tons of options out there, but many of those agencies don’t have a proven track record. Their results are limited to one or two instances where their marketing efforts worked. However, you want to focus on finding an agency that can consistently deliver results again and again.
Only At MuteSix
The bottom line is that MuteSix has worked with some of the biggest brands in the world, including Adidas Outdoors, PetCo, Shell, and the LA Times. We are pioneers of brand response marketing, and we help you acquire customers and bring them all the way through your sales funnel.
We work across a variety of social and digital channels to help you get results through internet marketing, and we are among a select few agencies who have the opportunity to work directly with Facebook and Google.
Our in-house creative team has won multiple awards for their video creations, which continue to prove effective for our clients. We see incredible results with strong and consistent ROI through our ever-evolving video marketing strategy.
Our services include Facebook and Instagram advertising, conversion rate and conversion optimization, customer acquisition, influencer marketing management, and more. When you work with MuteSix, you aren’t limited to one channel or one marketing strategy.
Instead, we implement a host of different strategies and tactics to make sure that you’re getting the best possible return on your investment with us.
Take a look at what we were able to do with William Murray Golf. We helped them scale to 3x size within the first 30 days, and their return on ad spend increased by 20x. We know what it takes to get results, and we have demonstrated our ability to do that time and time again.
If you own an e-commerce site and are looking to get started with a Facebook ad agency or performance marketing agency, come check out MuteSix. Our track record speaks for itself, and our clients love the work we’ve done for them.