This approach works best in digital marketing where all marketing activities are easily tracked. Rather than budgeting based on an agency's hourly rates, clients can budget based on the number of likes, clicks, conversions, sales, etc. that they generate.
In other traditional advertising forms, the advertiser invests upfront for ad spaces with no guarantee of performance.
With today's tools, all these activities can be conveniently tracked and reported on various dashboards. This creates a solid trust between the client and their agency as marketing software provide real time results, which creates more transparency and accountability.
This means two things for the average business. First, the ad dollars go directly towards revenue growth; performance marketing ensures that companies' resources are spent on efforts that achieve their desired objectives. Second, performance marketing teaches companies to be data driven. Instead of relying on gut feel and instinct, marketing strategies will be based on real data.
"After over a decade in marketing, I've yet to see an approach that works better for clients than performance marketing. It's effective, cost-efficient, and, best of all, it rewards results over effort," said Bassem Saber, Head of Performance Marketing at Igloo, a leading digital marketing agency in Dubai.
The next time you're looking to infuse your business with new life, remember that performance marketing is well worth a try.
