Performance Marketing: Performance, Performance, Performance

E-Commerce

Performance marketing has become an integral part of the digital marketing world. Unlike traditional marketing methods, where success is often difficult to track, performance marketing is based on concrete results and measurable actions. But what exactly does the term performance marketing mean? In this blog article, we take a closer look at performance marketing, explain the various channels, KPIs and strategy, and show how companies can make the most of this performance-based model to maximise their digital success. The integration of a PIM and DAM system is essential for success.

The most important Channels in Performance Marketing

Performance marketing encompasses a variety of channels and platforms, all of which serve different goals and target groups. Some of the most important channels are:

1. Search Engine Marketing (SEM)
   Search engines such as Google and Bing play a central role in performance marketing. Companies can use both organic search results (SEO) and paid adverts (Google Ads, Bing Ads) to drive traffic to their website. With the Pay-per-Click (PPC) model, companies only pay when a user actually clicks on their advert. SEM is particularly powerful, as users are already actively searching for specific products or services, signalling a high purchase intent. By specifically selecting relevant keywords, companies can ensure that they are targeting exactly the right users.
2. Social Media Marketing
   Platforms such as Facebook, Instagram, LinkedIn and TikTok offer a wide range of opportunities for performance marketing. Here, companies can address specific target groups and optimise their ads so that they are tailored to the interests and demographic characteristics of users. Of particular interest is retargeting, where users who have already interacted with the brand (e.g. by visiting the website) are targeted again. This targeted approach to ‘warm’ leads often leads to higher conversion rates.
3. Affiliate Marketing
   In affiliate marketing, companies work with partners who promote their products or services. These partners receive a commission for every sale or action they generate through their recommendations. Affiliate marketing is one of the oldest forms of performance marketing and offers companies the opportunity to increase their reach without the need for a large upfront budget. For example, a blogger could write an article about a product and include an affiliate link to the online store. If a reader clicks on this link and buys the product, the blogger receives a commission. Companies benefit from the credibility and reach of affiliates.
4. Display Advertising
   Display adverts are visual banners that are placed on websites to advertise products or services. These adverts are often placed automatically as part of programmatic advertising, which enables companies to address their target groups even more precisely. Display adverts work particularly well in combination with retargeting, as potential customers come across them again and again, thus increasing the impulse to buy.
5. Email Marketing
   Email marketing is still one of the most effective channels in performance marketing. Direct contact with potential or existing customers allows companies to send targeted offers and information. Sending personalised emails that are tailored to the user’s behaviour is particularly effective, e.g. emails that are sent after an abandoned shopping cart. Automated email marketing based on specific triggers (e.g. birthday offers or follow-up emails after a purchase) can strengthen customer loyalty and significantly increase conversion rates.

Strategy for Performance Marketing

Performance marketing makes the results of advertising measures measurable. KPIs serve as important indicators for evaluating success or failure. However, successful performance marketing requires a clear strategy. A successful performance marketing strategy follows a structured approach:

1. Goals: The strategy begins with the clear definition of objectives, such as increasing the conversion rate or acquiring new customers. Precise goals are the basis for targeted measures and effective measurement of success. It is therefore best to formulate them using the SMART formula, i.e. specific, measurable, attainable, responsible and time-bound. Using the example of ‘increasing the conversion rate’, the smart goal could read as follows: ‘The conversion rate of our online shop for the new product segment should be increased from two to four per cent within the next three months through targeted social media campaigns and optimised product descriptions.’
2. Marketing Channels: Depending on the objective and target group, the optimal marketing channel is selected from online marketing, be it search engine marketing, social media, affiliate marketing, display advertising or email marketing. The channel should match the interests and behaviour of the target group in order to achieve maximum reach and effectiveness. Important: You can either opt for a single channel or a combination of several channels.
3. Controlling: After the start of the performance campaign, the performance of the individual measures is recorded and evaluated through continuous monitoring using KPIs such as CTR, conversion rate and ROAS. Analysis tools such as Google Analytics are used for this purpose. This controlling provides valuable data for assessing the success of the campaign.
4. Optimisation: Based on the data collected, the campaign is optimised in a targeted manner by adjusting content, budgets and playouts in order to achieve the objectives efficiently and continuously improve performance. It is crucial to understand the causes of possible weaknesses. Let’s assume that Google Ads achieve a high number of clicks, but there are no conversions in the online store: Possible reasons could be overly cumbersome payment options or unconvincing product texts or product images.

The advantages of a performance marketing campaign are clear: measurability, targeted optimisation options, high flexibility and performance-based payment. However, this strategy requires continuous data analysis and precise evaluation in order to make effective adjustments. It should also be noted: As the success of the campaign increases, so does the expenditure.

What role do PIM and DAM systems play in Performance Marketing?

Performance marketing is ideal for the targeted sale of products and is therefore primarily used in e-commerce. As soon as users reach the desired action – such as a purchase – it is crucial that the product information displayed in the online store matches the advertising measures previously shown. A PIM system therefore ensures that all product data such as descriptions, prices and specifications are maintained centrally and displayed consistently. A DAM system enables the efficient management and channel-appropriate provision of all digital media, including images, videos and graphics, as well as advertising material for performance campaigns (e.g. banners for websites or apps, social media ads or short promotional videos for story or in-feed formats). This means for the various channels:

1. Search Engine Marketing (SEM): With up-to-date and correct product data from the PIM system, ad content is always kept up to date. The media-neutral management and channel-specific output of the associated media by the DAM system ensures optimal display of visually appealing adverts.
2. Social Media Advertising: The DAM system allows the marketing team to quickly download social media advertising material customised to the respective platform, while PIM data guarantees the product information. This makes it easier to manage different versions for different target groups and markets.
3. Affiliate Marketing: Affiliates benefit from consistent and reliable product information and assets provided by PIM and DAM. The maintenance of content in a central location minimises errors and enables simple adjustments, for example in the event of price changes or promotions.
4. Display Advertising: By using DAM, creative assets can be used in a targeted manner for retargeting campaigns. The consistency of the data through the PIM system ensures that up-to-date product details and prices are always shown in display adverts.
5. Email Marketing: With a PIM and DAM system, email marketing can be organised much more precisely. Automated processes ensure that newsletter subscribers always receive up-to-date product information and suitable visual content – a decisive factor for the conversion rate.

The use of a PIM and DAM system therefore enables a targeted and consistent approach across all performance marketing channels. Content and assets can be adapted to the respective target group more quickly and in high quality – a decisive advantage for the efficiency and effectiveness of campaigns.

Conclusion: Performance Marketing with PIM and DAM

Performance marketing in conjunction with a PIM and DAM system offers you a particularly effective method for optimising your digital marketing measures. These systems ensure greater speed, consistency and flexibility in the provision of your content, creating a stable foundation for sustainable success in digital marketing. Especially in highly competitive markets, the increased efficiency and automation provided by PIM and DAM systems is a clear advantage. With these tools, you can not only rely on the fact that the right content is played out in your channels and perfectly matches your performance campaigns. They can also ensure that you can easily find, share and reuse the right content for each campaign. This makes it particularly easy to collaborate with decentralised teams across multiple locations and makes finding the right asset more efficient than ever before.

And if you’re looking for a PIM and DAM, then you’ve come to the right place. Our OMN offers you a seamlessly integrated PIM and DAM system for maximum performance. Get to know OMN without obligation: To get in touch >>