What Is Performance Marketing?

One of the biggest problems for advertisers is that some of the money they spend is wasted. This fact has not changed, although measurement methods have become far more sophisticated with the increasing weight of online advertising.

Performance marketing provides a solution to this problem. Advertisers who want to invest for the results of the ads, not for the ads, turn to performance marketing.

The Definition

In classical advertising models, regardless of the effect of the advertisement, it is the advertiser who pays the advertising agency or the media in advance. In performance marketing, on the other hand, the advertiser pays if and only if the action he/she expects from the target audience is taken. This may be the sale of a product on the website or the completion of a form.

With performance marketing, the advertiser can more accurately predict how much of the money they spend on their marketing budget will return as profit. It is not possible to have such foresight with classical advertising planning techniques.

Why Not Use Performance Marketing for Every Campaign?

If advertisers waste some of their money on other ad models, why don’t they use performance marketing in every campaign?

This is a good question. To answer it, we must discuss the concept of “advertising”.

Advertising is not just for the sale of a product or service. In general, advertising is a form of persuasive communication, and selling is merely one of the outputs of this persuasion process. Making brand communication or expanding the category may also be among the purposes of the advertisement. Since the communication to be made for these purposes cannot be measured based on user actions, performance marketing techniques cannot be used in all cases.

One of the biggest obstacles to the widespread use of performance marketing is its cost, which can be high. The media, which is paid for a specific performance, naturally demands higher budgets for this type of advertising.

How to Use Performance Marketing

It is possible to use performance marketing techniques in every advertising channel where user actions can be measured.

Content can be used as a performance marketing channel. When the budgeting of sponsored posts, native advertising, or affiliate marketing activities is performance-based, they turn into performance marketing examples.

Social media ads can also be evaluated within performance marketing. If your campaign goal is to sell a product or service directly, or if you want to increase the number of fans on your social media profiles, your advertising efforts for all these fall within performance marketing.

Programmatic on TV: What You Need to Know

Thanks to the developing technology, there has been a significant change in the purchase of digital advertisements in recent years. The fixed pricing system that used to be widely used has been largely replaced by programmatic advertising. This way, advertisers can manage their budgets much more efficiently.

However, the same does not go for television. Pricing models that have been used for decades in television advertising continue to be used. This system, which is based on sampling-based data and whose reasonability is questionable, is slowly changing. The use of programmatic advertising on television is increasing, thanks to the efforts of advertisers who want to utilize the opportunities offered by online advertising on television and publishers who want to offer wider opportunities to advertisers.

What is Programmatic TV Advertising?

In its simplest terms, programmatic TV advertising is a type of advertising in which personalized messages can be delivered to the audience. The biggest difference from traditional TV advertising is that TV programs have such a structure that centers the audience individually instead of an advertising strategy set according to their target audience. While traditional TV advertising is based on data obtained from a sample and updated rarely, programmatic advertising is based on data that is always up-to-date and represents the entire universe.

What are the Advantages of Programmatic TV Advertising?

The biggest advantage of programmatic TV advertising is that targeting is based on much more accurate data. This is a very important advantage in an environment where it has become very difficult to segment the target audience into meaningful segments.

Another critical advantage of programmatic TV advertising is purchasing automation. Thanks to this automation, it is possible to make much more sophisticated media plans. Manually allocating budgets in traditional TV advertising leads to missing many opportunities.

Ease of measurement is another crucial advantage of programmatic TV advertising. The direct processing of data covering the entire universe enables many planning maneuvers to be performed easily.

The facts that the data can be processed so easily and the purchasing is done with automation allow the ad campaigns to be optimized instantly. The ability to intervene immediately on campaign performance allows advertisers to achieve their marketing goals more efficiently.

Are We Ready?

We can say that programmatic TV advertising has just taken its first steps. Programmatic accounts for only 3% of total television advertising spending in the US. However, this rate is rapidly increasing every year.

The biggest obstacle to progress in programmatic TV is that the budgets required for programmatic advertising are higher than those for traditional planning methods. The biggest reason for this is that the inventories of televisions for programmatic are not sufficient. As the inventory improves, its programmatic costs will decrease.

Could Blockchain Be the Future of Advertising?

All players in the digital advertising world agree that transparency is a crucial concept for digital advertising to reach its full potential. Developing solutions to keep fraudsters out of this complex ecosystem will protect publishers, advertisers, and consumers. Blockchain technology is one of the technologies that can play a part here.

Why Is Such a Technology Needed?

The growth experienced in the digital advertising sector is the biggest reason why the development of more effective control mechanisms is required. The amount of data shared between the parties increases day by day, making it difficult to control this data effectively. In such an environment, the work of fraudsters becomes easier, resulting in the world of digital advertising losing both money and reliability.

In the current environment, ad buyers have to manage complex systems manually. The presence of fraudsters also undermines their trust in the system.

Publishers also favor more transparency. The lack of transparent metrics and the ineffectiveness of third-party audit mechanisms negatively affect the credibility of publishers.

How Blockchain Technology Can Solve the Problem of Trust

One of the most important features of blockchain technology is that it decentralizes the control mechanism. In this way, it is possible to create much more reliable and safer control mechanisms.

Another attractive aspect of blockchain is its ability to simplify complex operations. Thanks to its scalability feature, it makes even large advertising operations controllable. With the automation of manual controls, human error is minimized.

Personalized Ads

Blocking third-party cookies is one of the hottest topics in the advertising world. First-party data is needed to create personalized ads in an environment without cookies. But not every publisher will have this data.

At this point, with the necessary legal regulations, blockchain technology can be a solution. It is possible to continue to display personalized advertisements by protecting the privacy of user data.

Big Steps Required

Many tech enthusiasts describe blockchain technology as a miracle. But we shouldn’t get excited so quickly. Because blockchain technology will create an evolution in advertising rather than a revolution. On the other hand, changing working systems and the need for legal regulations are also major obstacles to be overcome by blockchain technology. Therefore, there is no other solution for advertisers and publishers than working with reliable advertising platforms for the near future.

Key Affiliate Marketing Statistics for 2021

Since the concept of affiliate marketing emerged, it continues to be a productive source of income for online content creators. It’s a fact that it’s harder to make money these days than in the early days of affiliate marketing. However, the numbers show that this market continues to grow, still allowing to make big dollars with the right strategies.

Affiliate Marketing Market Grows 10% Per Year on Average

In the USA alone, the amount spent on affiliate marketing at the end of 2020 has exceeded 7 billion dollars. This growth rate refutes the arguments of those claiming that affiliate marketing has reached saturation point.

85% of Consumers Do a Google Search Before Purchasing Any Product or Service

The biggest force driving the continuation of the growth trend of affiliate marketing is the very attempt of consumers to reach detailed and objective information before purchasing a product or service. This is where content producers come into play. Content that is not produced by the brand itself is much more believable to consumers.

Affiliate Marketing Conversion Rates Between 0.5% and 1%

Conversion rates are critical numbers for the digital marketing world. The conversion rate of almost every digital marketing instrument decreases over time. Conversion rates provided by advertising are now referred to as one-thousandths. At this point, affiliate marketing has a much higher conversion rate compared to other digital marketing techniques. This ratio makes affiliate marketing an attractive tool for advertisers.

9-Year-Old Ryan Kaji Earned $29.5 Million From His YouTube Channel in 2020

9-year-old Ryan Kaji, one of the most significant sensations of the internet in recent times, earned $29.5 million in 2020 from his YouTube channel, where he produces content for children. A large part of this income was achieved through agreements with brands.

Retail Industry Makes 43% of Affiliate Marketing

The retail sector witnessing the highest sales figures on a unit basis is the biggest player in the affiliate world. The information need of consumers while shopping in this sector is what primarily leads to this large share.

Affiliate Marketing, the Biggest Source of Income For Websites with Low Number of Visitors

Studies have shown that websites with an average of less than 5,000 unique visitors per month have difficulties generating revenue from advertising models. In return, they can generate income from affiliate marketing. Affiliate marketing is an essential source of income, especially for micro-influencers producing content in a limited area, thus appealing to a limited target audience.

18.70% of Affiliate Revenues Come from Fashion Products

Fashion products have a significant share in the online retail industry, also echoing in affiliate marketing statistics. Fashion products are followed by sports and outdoor products with 14.8% and health and wellness products with 11.30%.

AI Will Play a Big Role in the Future of Programmatic Advertising

We’ve been hearing about the concept of AI a lot over the last few years. Many industries use AI to increase efficiency. Advertising will inevitably be among the industries that use AI. Within this industry, programmatic advertising is the most apt to use AI to increase effectiveness.

Personalized Content, Tailored Advertising

When we sit in front of a computer or pick up our mobile phone outside of our working hours, the thing we do most is to consume content. But here’s a fact: Most of the content on websites is of no interest to us. We do the job of filtering the content that interests us.

From this point of view, we can say that the adventure of most publishers in digital media does not go beyond digitizing printed materials. The technology needed for a more personalized consumption of content is now available. Some startups are working on real-life applications of these technologies.

AI plays a huge role in customizing content. Considering advertising is also a form of content, AI will play a major part in customizing the advertisement shown to each user.

Oh, Those Cookies…

Although Google postponed the steps to be taken regarding cookies, it did not cancel its plans at all. Blocking third-party cookies will one day become a reality, and today it is a significant obstacle ahead of the concept of personalization, which is heavily dependent on cookies.

In a future where data resources will be limited, AI, which can make predictions by analyzing the user’s content consumption within a website or application, may become the focus of personalization efforts. Predicting the user’s behavior streams with NLP techniques can ensure that the right ads are displayed, without relying on third-party cookies.

Less Money, More Impact

One of the areas where AI will be effective is budgeting. Calculating the actual value of an ad space is quite a complex task. It is almost impossible to do this manually, especially in an area where things like programmatic advertising are progressing very quickly. AI can help media buyers with this. By continuously calculating the ROI, AI can ensure that the most efficient ad spaces are paid the lowest amounts.

Ad Creatives Can Also Be Personalized

Semantic web technologies are developing. We now talk to digital assistants like Siri or Google Assistant almost every day. When semantic technologies are used together with AI developed for advertising, creating highly effective ad texts can no longer be magic. In this way, instead of showing the most relevant ad to the user in an ad pool, personalized ads can be produced for the user in real-time.

Affiliate Marketing Tips for Publishers in 2021

Affiliate marketing has become one of the primary sources of income for original content creators online. However, as the number of people creating content increases, competition also increases. In order to get efficiency from affiliate marketing projects, it is a must to stand out in this competition.

Don’t Be Limited to a Single Channel

In the early days of affiliate marketing, there were only blogs. Major affiliate marketers also owned major blogs. But that changed as social media became the primary source of content consumption. Today, affiliate marketers have multiple content distribution channels.

Each content distribution channel has its unique audience and dynamics. Thanks to these channels, communicating more effectively with wider audiences is possible. Therefore, do not limit yourself to a single communication channel and try to be present on as many platforms as possible.

Be Specific

You may have heard of the word “micro-influencer.” Micro-influencers, who are experts in a specific field, have recently attracted advertisers’ attention. Although micro-influencers reach a low number of people, their ability to persuade their target audience makes them valuable for advertisers.

Especially if you are a newcomer to the world of affiliate marketing, you can choose micro-influencing to climb the stairs faster. If you have an area of expertise where you think you can produce valuable content, it would be wise for you to take this way.

Be Professional

If you see affiliate marketing as your business, be professional and use the techniques and tools that professionals use.

It is crucial to monitor your content performance constantly. You can use many tools, particularly Google Analytics, to see which content your target audience approaches positively. Keep track of the number of interactions you receive on your social media posts.

It would also be wise to invest some money in your communication channels. You can expand your reach by advertising your website or social media channels. However, in order to spend your advertising budget wisely, you must master the advertising tools.

Be Selective

Being successful in affiliate marketing takes more than just creating quality content. The product or service you are promoting should also be attractive to your target audience. So be selective about what you promote. Promoting products or services that will be of no interest to your target audience will reduce your target audience’s interest in you over time.

Evaluate the sales performance of the products and services you promote through different channels. Check out what’s being said on social media about these products and services. If your overall impression is positive, get to work. But if you have doubts, stay away.