When Times Are Tough, Performance Marketing Is A Must
Written by members of the media community, Data Driven Thinking brings fresh insights into the digital media revolution.
Today's column was written by Sean Pope, Executive Vice President of Matterkind .
Labor market forces and consumer demand are currently unclear as to whether a recession is imminent. However, most companies review all budget items.
Research clearly shows that investing in marketing during economic downturns leads to strong business results. Some companies have restructured and cut productivity costs in favor of brand marketing. Airbnb has done this by using the instantly recognizable power of the brand as a key marketing tactic starting in 2021.
So, is prioritizing brand marketing over performance the right tactic for brands looking to maintain control over their marketing spend in times of uncertainty?
My answer is no. Effective marketing is every CFO's dream, delivering measurable growth for every dollar spent. Therefore, in an unstable economic situation, it is absolutely necessary.
1. The prospect moves up the funnel
Traditionally, brand and performance were seen as opposite ends of the funnel. However, the performance tactic is on the rise, meaning brands can use it to increase awareness and build relationships.
For example, instead of investing in a low-funnel affiliate program, brands can take advantage of affiliate marketing through premium publishers and social media influencer websites.
But channeling more spend into effective, data-driven marketing doesn't mean sacrificing brand identity. Instead, it's important to think of brand marketing as a slow tactic that builds your personality and perspective over time. Finding the right balance is critical to optimizing your marketing efforts.
2. Brands are more flexible
Performance marketing has come a long way since its inception two decades ago. Marketers can tailor strategies to their brand's unique needs and set parameters for success. This provides more flexibility and control.
Instead of focusing on generic metrics like views or clicks, brand marketers can set their own KPIs. For example, if you run a retail business, your priority may be to attract customers to your physical store. Unlike an insurance brand, your focus may be on customer acquisition.
3. Costs can be linked to business KPIs
Marketing programs work best when every dollar can be tied to a specific business KPI. This allows the CMO to be more accountable and have productive conversations with the executive team to demonstrate how marketing investments are delivering results.
Transparent Performance Marketing is fully responsible. Impact can be measured and directly attributed to each investment.
4. Convenience is guaranteed
All year round (and especially in tough economic times), brands don't want to be locked into a fixed monthly fee. You should be able to increase or decrease your expenses each month depending on your priorities and the season.
Effective marketing doesn't just enable brands to adjust their spending. You only pay for the results you get. For example, with affiliate TV advertising, brands can pay a fee for each additional reach or percentage of market demographics.
Combined with the knowledge and technology of performance partners, this flexibility enables brands to weather even the harshest economic storms.
5. Brand growth is based on primary data
Although the deadline for implementing third-party cookies has been pushed back, it is still on the horizon. This means that first-hand data is essential to building long-term customer relationships.
Brands can use effective marketing to generate leads and generate data for their potential customers. In the age of conscious marketing, delivery channels are designed to provide a relevant and respectful experience and build lasting relationships with customers.
In times of economic volatility, brands must find solutions to help them maintain growth despite tight budgets. Performance marketing can achieve many of the same goals as brand marketing, delivering incremental, measurable growth, but with less risk, more control, and more insight.
Follow Matterkind ( @Matterkind ) and AdExchanger ( @adexchanger ) on Twitter.
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