The power of video is undeniable, as evidenced by these numbers compiled by Adelie Studios:
"Seventy percent of marketing professionals report that video converts better than any other medium — MarketingProfs"
"When marketers included a video in an email, the click-through rate increased by 200% to 300% — Forrester"
"64% of consumers are more likely to buy a product after watching a video about it. — comScore"
Awesome. Now what prefaces every video? An ad, right? And these ads aren't typically pay-per-click (which is good, since they pay peanuts) — instead they're paid by performance, for encouraging an action from a consumer. This could be a purchase, a social share, or even taking a poll or choosing their own experience in-ad.
Way better than PPC! As the Performance Marketing Association explains, "Advertisers in performance marketing only pay for successful transactions." So instead of paying for a click that may not result in an actual sale or lead, performance marketing is paid after the sale or lead is complete.
Who's leading the charge?
Just as video sites' popularity is booming, so too are sites geared toward helping your business make the most of affiliate, and its big brother, performance marketing. But it's not a new concept.
"Whether it was email a few years ago or is native advertising today, every big advertising trend has begun with and is ultimately powered by performance marketing,” said Clickbooth CEO Erin Cigich at Revenue Performance's Blue Ribbon Panel: The Future of Performance Marketing, last month. “Performance is the great equalizer and it is an advertising model that simply makes sense.”
Performance is indeed the bottom line, which is why cost-per-action (CPA) agencies like Clickbooth, and affiliate marketing services like Shareasale, Commission Junction and so many others exist. Why pay just to put your message in front of consumers, when you can pay for actual conversions – sales, leads, etc?
Imagine what combining performance marketing with your video marketing strategy can do!
It's time to out-perform your competitors
So, is performance marketing for you? Here's a checklist to help you decide:
* You're spending more on advertising than you're generating in revenue. Because performance marketing operates on a CPA model, it's actually the most economical advertising solution – you pay only when you get your desired results.
* You're not sure which ad campaigns are effective. Campaigns can be tailored across various websites and publishers and tracked in real time, so you know which are getting you the best results.
* You have a solid video presence, but that traffic isn't converting. Boost your calls to action with performance marketing and see what happens.
If any of these issues speak to you, then your answer should be yes to performance marketing. If not, I’m sure I’ll share other options in upcoming posts.
Getting consumers to click on your ads is great, but it's an empty gesture — kind of like window shopping. If you're paying for those clicks, all the worse. Just as you upped your game by including video in your marketing mix, it's time to level up your conversions.
This post originally posted on MediaPost
IMAGE CREDIT: Ludde Lorentz