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Most marketers are familiar with the concept of the “purchase funnel,” and many online marketers plan and execute their campaigns with it in mind. However, I would argue that most would go with their first instinct to buy media on some sites for their ability to generate awareness and reach new customers. A smaller group of marketers may also consider buying media for ads to drive an action. But many fail to realize the true value of the performance marketing channels; search, affiliate, email and even social media (to a lesser extent)?
Granted, the vast number of campaigns today are about building a clients brand and media buying is an appropriate medium where banner/flash/video are used to develop these brand associations.
However, I believe fewer marketers are venturing into the area of 'outcome based digital marketing' or 'performance marketing'. Here the messaging and digital channels are purposefully selected to bring a consumer on a journey to make a specific action. For example, using search marketing (PPC) by associating paid ads with search terms so you can attract an audience to click on your ad. Affiliate Marketing , where a a range of techniques from simple banners, to text links embedded in content to pop-ups and other flash type ads bring people to a conversion page (usually a registration or product purchase page). Social Media is also becoming a more understood medium and it is widely accepted now that there is power when social media to influence consumers (for making purchases or for not). Email, my old favorite direct marketing tools seems to be making a come-back for late 09' & into 2010. This channel traditionally has great ROI for driving 'calls to action' and having massive reach. Here in China, we seem to be living in the region that is more accepting of a higher degree of spam that I would suggest is tolerated in the West.
So, with all these performance channels at my disposal should I use all? Maybe two or three? Who knows. The reality is these media channels overlap and multiple channels will reach consumers prior to conversion. Note that different product offers will require different mixes of performance marketing channels but over time I have seen more predictability as a campaign runs about what channels and at what specific points of a campaigns should you use different mixes of performance channels. Here is a broad summary of what I mean about mixing performance channels over the life of a campaign.
Yet, the advertising metrics and models developed for online marketers largely ignore the question of best practices for performance marketing. There is not much research in the way of when various channels should be used. So, SinoTech Group developed analytics tools that measure and determine ROI at the channel level and over the life of the campaign; with optimization it is possible to drive the most effective ROI by channel throughout the various phases of a buying cycle. Many other companies or marketers simply measure the last ad seen or the final click. This is just a snapshot in time and focused entirely on the bottom of the funnel. Evaluating only a single point of advertising contact oversimplifies the delivery and performance of any media channel. We have made many discoveries in the process of planning and optimizing performance digital media but this is a relatively new area and in China we are only now coming to terms that performance marketing (not simply a single channel like search but as an integrated approach) is a legitimate channel to be considered by the leading Brands.
However, as 2010 looks like the China will continue to see eCommerce flourish, I am predicting more people will start to appreciate the true value of 'performance orientated' marketers.
Written on Saturday, 14 November 2009 18:36 by Matt McDougall
