Building and Executing a True Performance Marketing Campaign

Performance marketers are redefining the marketing landscape in real time, continually refining the blend of art and science needed to drive results. Achieving a true performance marketing campaign is complex, and it’s arguably the toughest challenge marketers have ever faced. Nevertheless, those who do build a true performance marketing capability will reap unmatched rewards.

In a recent article he wrote for ClickZ, There is More to Performance Marketing than Measuring Performance, Jonathan Shapiro, CEO of online performance marketing agency MediaWhiz, aptly noted that today’s best performance marketers “are not just measuring results, but actively improving them.” Shapiro describes a true performance marketing campaign as one in which the marketer forecasts return on investment, pays only for performance and continually optimizes while the campaign is live.

Shapiro then asks why more marketers, advertisers and agencies aren’t taking advantage of performance marketing tools and strategies. His answer? “The relative newness of the industry has not provided sufficient time for most marketing organizations to develop the expertise or technology to manage a true performance marketing campaign.” I agree that performance marketing is the future of our industry, and that the development of performance marketing expertise and technology is the key to success. What follows are some strategies to help you build and execute a true performance marketing campaign.

Finding Performance
True performance marketers must be visible wherever and whenever there’s an opportunity for performance. The increasingly splintered web requires brands to “get found” in more places and on more devices. Thus true performance marketers must be committed to being found across all paid, owned and earned media. This requires continually evaluating new channels, products, devices, processes, technologies and distribution partners. It also requires having a team with expertise in everything, from the latest trends in search to the hottest new mobile devices.

Cross-Channel Integration & Attribution
True performance marketers are business strategists who foster integration between search, display, social, mobile, affiliate, CRM, offline advertising, merchandising, inventory and more. Cross-channel insights inform overall marketing strategy, helping performance marketers determine the right channel to spend each and every marketing dollar.

Technology plays a major role in uncovering these insights. Performance marketers are currently perfecting tools to help them make cross-channel buying and optimization decisions in real-time. It’s an understatement to say that efficiently managing and passing data between cross-channel tracking systems is challenging. This combined with custom segmentation, advanced targeting techniques, unprecedented data volume growth and marketplace demand for immediate transparency makes it clear that legacy data processing cycles are inadequate to handle these terabytes of data.

Not to mention, performance marketers need additional headroom to handle peak demand (e.g., holiday). The good news is that access to on-demand cloud computing and data management solutions are now within the reach of every performance marketer.

Attribution is also a cornerstone of a true performance marketing campaign. However, determining how to best leverage and optimize paid/owned/earned media isn’t just about how much money you should spend in various channels. It’s an exercise in understanding people, the communities they form, how they communicate and how to engage them in conversation.

True performance marketers are focused on improving marketing economics by dedicating the ideal budget to each channel while concurrently optimizing the creative to best appeal to each channel’s audience. This is done through real-time message/creative testing, and requires more than just powerful technology. It requires art — i.e., performance marketing people with innovative ideas on how to best engage audiences.

Performance marketers are redefining the marketing landscape in real time, continually refining the blend of art and science needed to drive results. Achieving a true performance marketing campaign is complex, and it’s arguably the toughest challenge marketers have ever faced. Nevertheless, those who do build a true performance marketing capability will reap unmatched rewards.

Retargeting With Demand-Side Platforms in Display Performance Media

A key driver for growth in display advertising is the rise of technology that seeks to bring efficiency to ad impression buying — i.e., demand-side platforms (DSPs). Approximately 10 percent of today’s online spending flows through DSPs, with forecasts calling for that figure to increase to as much as 50 percent over the next few years.

A key driver for growth in display advertising is the rise of technology that seeks to bring efficiency to ad impression buying — i.e., demand-side platforms (DSPs). Approximately 10 percent of today’s online spending flows through DSPs, with forecasts calling for that figure to increase to as much as 50 percent over the next few years.

Large brands will fuel much of this growth as they shift large ad network budgets to DSPs for better pricing, increased transparency/brand safety, centralized ownership, protection of visitor data, among other benefits. Even marketers who failed with display in the past can achieve success with the ad vehicle in the present via DSPs, thanks to the inherent advantages some DSPs bring to the table.

Many direct and performance-based marketers who were unable to measure traditional display buys to a reasonable return on investment in the past are starting to explore DSPs as a new source of incremental sales and leads. Since a retargeting buy is publisher agnostic (i.e., the advertiser is buying impressions served to specific cookies, not impressions served on specific websites or content channels), DSPs offer the most scale and efficiency, reaching 98 percent of internet users through one-bid management platform using global frequency controls.

Thanks to these advantages and the relevance they offer, retargeting campaigns often convert two times to 10 times more than traditional display ads, and can, at times, show an ROI equal to or better than generic search or content targeting campaigns.

Display advertising continues to evolve, and certain key strategies are starting to take shape that can help advertisers control risk while gaining valuable insights for future channel maximization. Depending on website traffic and ROI flexibility, performance-based advertisers typically have the most success kicking off testing with site-based retargeting.

This strategy enables advertisers to retarget consumers who visited their site, browsed and left without ever converting into a lead or sale. By placing a retargeting tag in the footer of these pages (e.g., the home or shopping cart pages), advertisers can build and bid on multiple retargeting segments using segment-specific messaging or offers across the web through an ad buy on either a DSP or ad network.

So why not just limit testing to retargeting? Although advertisers may be able to achieve ROI close to search or affiliate campaigns with retargeting, impression volume will eventually limit growth. Similar to the role of generic terms in driving brand term volume in a paid search campaign, it’s important to test and explore a broader set of display performance media strategies that may work at higher, more flexible RS/CPA levels in conjunction with retargeting to help drive site traffic that feeds a retargeting cookie pool.

DSPs can help advertisers implement these strategies. Run of network buys (testing different DSPs/networks with and without filters), contextual targeting and site targeting, when bought in a biddable marketplace, are all viable in driving cost-effective traffic to an advertiser’s site. If an advertiser has the right tools and processes in place, DSPs can even be profitable in and of themselves.

For advertisers that are willing to be more flexible and effectively leverage it, display performance media can quickly become the next big untapped channel. These emerging strategies will continue to evolve and pave the way for targeted display advertising for years to come.

Special thanks to contributing author Kirstin Peters of Performics.

Forecasting a Cheery 2010 Holiday Shopping Season for Paid Search Campaigns

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

From a performance perspective, actively managed holiday paid search campaigns delivered impressive results during the 2009 holiday shopping season in comparison to the rest of the year. In 2010, these campaigns have already achieved strong year-to-date (YTD) growth. This strong YTD growth will likely continue into the fourth quarter, and Performics predicts this will net out to 15 percent year-over-year (YOY) growth for actively managed holiday paid search campaigns. The results could be even stronger for search advertisers who are able to make Q4 outshine the rest of the year like they did in 2009.

Either way, all signs point to growth for these campaigns, and marketers should keep the following opportunities in mind:

Continued emphasis on value. Free shipping and discounts have become standard as retailers continue to vie for cost-conscious consumers. Average order value is down 9 percent YTD according to a Performics Holiday Retail Group report, and this trend will likely continue into Q4. Providing offers on upsell or cross-sell products can help boost order totals and offset free shipping and other discounts merchants offer.

Delayed shopping as savvy consumers research and wait for late sales. The first two weeks in December 2009 saw sales increase by 27 percent compared to 2008, while Black Friday sales decreased 17 percent YOY. Sales during the last week of free standard shipping prior to Christmas also increased significantly in 2009. However, numbers may shift this year if consumers feel more confident with compelling sales already underway. The recently released Compete Holiday Insights survey found that 50 percent of consumers have already started holiday shopping.

Shoppers are reaching for their phones. Nearly half of adult smartphone owners younger than 25 will use their smartphones to shop this holiday season, according to a new survey from the National Retail Federation and BIGresearch. An increasing share of overall clicks are coming from mobile — 6.7 percent in September, and projected to be greater than 10 percent within 12 months.

Improved efficiency of last-minute shopping. Consumer spending and cost per clicks dropped dramatically following the last week of free standard shipping prior to Christmas 2009. Active paid search advertisers can do more for less after Dec. 17.

Marketers looking to capitalize on these opportunities and improve holiday performance should consider the following recommendations:

  • follow best practices to actively manage campaigns and effectively respond to market forces;
  • offer aggressive promotions early to capture shoppers;
  • actively participate in the last week of free standard shipping prior to Christmas;
  • embrace mobile to ensure the channel’s increasing user base can find you when searching; and
  • continue active management of paid search beyond Dec. 17 to further boost efficiency.

By following shoppers’ changing behaviors this holiday season — and planning and executing campaigns accordingly — marketers can boost their odds of a jolly holiday.

Turning Social Media Into Customer – And Shareholder – Value

Forrester Research reports advertisers will spend $716 million on social media marketing (including ads on social networks, corporate blogs, etc) in 2010, but that will grow by 34 percent to top $3.1 billion in 2014. The investment shift reflects changing consumer behavior and acknowledgement that customers increasingly learn about a brand through the company, its employees, other customers and even competitors.

Forrester Research reports advertisers will spend $716 million on social media marketing (including ads on social networks, corporate blogs, etc.) in 2010, and that number will grow 34 percent to top $3.1 billion by 2014. The investment shift reflects changing consumer behavior and acknowledgement that consumers increasingly learn about brands — e.g., their employees, customers and even competitors — via social networks.

While search growth shows signs of slowing, the conversations happening in social settings — which aren’t slowing down — drive search behavior. They reflect the sum of all strategic decisions that affect a brand’s ability to efficiently increase its value over time. In turn, proactive marketers and investor relations pros are making up for the slowing growth of search by leveraging social media for new growth. However, in order for social media to invite an emotional attachment and deliver tangible shareholder value, it needs to scale within an organization from the top down.

Networking solutions provider Novell is embracing social media as a strategic foundation on which it does business. According to John Dragoon, chief marketing officer for Novell, “The ‘social’ part of social media means that you have to get as many people involved as possible …” At a time when Novell profits slipped amid uncertainty, the company refocused on a clear sense of purpose and a mission to deliver unique customer value one step at a time. Social media helped the company communicate these accomplishments not just to customers, but to shareholders, its workforce and others.

For Novell and other companies that want to improve external communications, it only makes sense to embrace the efficiency and searchability of social media. Today, consumers create their own media schedules and can easily edit, copy, produce and distribute content. Furthermore, with internet television services like Google TV coming soon, it’s only a matter of time before C-level executives foster two-way dialogs with key stakeholders in searchable media.

Therefore, it’s best for companies to think about social media in the form of content and context.

Content:
Social media can complement formal press releases. It provides a forum for quality, two-way dialog with key stakeholders to evaluate where a company has been, where it’s going and other important topics of value to participants.


Context: Inbound links and topical content webs convey the strategic value of a product/service within the context of the business/marketplace. They answer critical, high-value questions like:

  • What do customers do with your product or service?
  • How does your solution solve a consumer pain point?
  • What’s unique and differentiating about your product or service relative to the competition?

Paid Advertising Opportunities on Twitter

With 140 million registered users and 350,000 new sign-ups per day, it’s past time for marketers to think about taking advantage of the paid advertising opportunities on Twitter. Twitter will continue to monetize its site by rolling out new advertising products in the near future, and there are two opportunities that are currently live: Promoted Tweets and Promoted Trends. A third opportunity called Promoted Accounts is currently in testing for a select few advertisers.

With 140 million registered users and 350,000 new sign-ups per day, it’s past time for marketers to think about taking advantage of the paid advertising opportunities on Twitter. Twitter will continue to monetize its site by rolling out new advertising products in the near future, and there are two opportunities that are currently live: Promoted Tweets and Promoted Trends. A third opportunity called Promoted Accounts is currently in testing for a select few advertisers.

Promoted Tweets
Promoted tweets allow advertisers to bid on keywords on search results pages. The ad unit shows up at the top of the search results and looks like a regular tweet except that it’s labeled “promoted.” Similar to paid search, the advertiser pays when a searcher engages with the ad, which Twitter calls cost per engagement (CPE).

An engagement is classified as a click on a tweet, a retweet, a favorite or an @reply to the tweet. CPE is currently reasonable because of limited competition. Promoted Tweet advertisers mostly only bid on their brand terms and have little or no competition for those terms. Thus, a small budget can go a long way.

Links within Promoted Tweets can go anywhere — like to a brand’s native website, its Facebook fan page or a YouTube video. With Twitter’s new version being rolled out through September, advertisers can embed content within a Promoted Tweet. Promoted Tweet users will also have access to a dashboard that measures engagement metrics for their tweets.

Twitter users may be searching for product names to see what the Twitter universe is saying about a product they’re considering purchasing. Promoted Tweets give advertisers the ability to show up on top of the search results for their product names. Thus, a Promoted Tweet can do things like help manage a brand’s reputation, provide more information on certain products and offer coupons.

Promoted Trends
Promoted Trends allow advertisers to show up in the “trending topics” section on the right rail of Twitter. For Twitter’s redesign, the trends show above the fold. The first 10 trends are topics that are naturally trending on Twitter that day. Promoted Trends show as the 11th trending topic, and are labeled “promoted.” Promoted Trends run for a day at a fixed cost. When a user clicks on a Promoted Trend, they’re taken to the Twitter search results for that trend, where the advertiser’s Promoted Tweet ranks on top.

If you’re thinking about running a Promoted Trend, pick a topic that seems to fit with the day’s other trends. Keep in mind, the topic could have trended naturally. This makes Promoted Trends ideal for keywords around new product releases that will be generating some amount of buzz on Twitter.

Movie studios have embraced Promoted Trends for new releases. Twitter users are likely to be buzzing about topics related to a new movie release. A Promoted Trend will help create even more buzz around the movie. Promoted Trend advertisers thus garner more engagement — e.g., clicks, retweets, favorites and @replies — and followers.

Promoted Accounts
Promoted Accounts launched this week and is currently in testing. They allow advertisers to pay to be included in the “Who to Follow” feature, which is displayed on a user’s profile page. “Who to Follow” suggests accounts that users should follow based on their interests, as determined by other accounts they follow. Promoted Accounts should be a great way to gain more followers who are interested in a particular brand or service.

The Twitter phenomenon isn’t something that advertisers can ignore. All brands should be using Twitter to engage with their fans and critics naturally. And for some brands, paid opportunities like Promoted Tweets and Promoted Trends can help increase engagement, manage reputation, gain followers and sell products.

Affiliates: Redefining the Original Performance Marketing Channel

As the original performance marketing channel, affiliate marketing has been effectively driving performance-based sales since the mid-90s. But the characteristics of an effective affiliate program have changed dramatically over the years. Whether marketers choose a closed or open affiliate program, or optimize their program monthly or annually, they should view affiliates differently today than they have in the past.

As the original performance marketing channel, affiliate marketing has been effectively driving performance-based sales since the mid-90s. But the characteristics of an effective affiliate program have changed dramatically over the years. Whether marketers choose a closed or open affiliate program, or optimize their program monthly or annually, they should view affiliates differently today than they have in the past.

When evaluating the worth of any affiliate in any given program, ask yourself questions that consider the increasingly mobile, social and local reality of today’s online world. A few starting point questions include the following:

  • Do your affiliates actively work for you?
  • Do your affiliates develop content around your products/categories to improve natural search exposure?
  • Do they generate new traffic/users to your site, both online and offline?
  • Do they use social networks like Facebook or Twitter to encourage brand interaction?

In some cases, the onus falls on marketers to do more to empower affiliates — i.e., arming them with vital brand information to help them drive high-quality sales and more volume. That includes the following:

  • insights on what the best-selling products are;
  • seasonal issues to be aware of, including holidays;
  • dates of catalog drops;
  • seasonal product lines;
  • anything unique about the marketer’s products;
  • proven tactics that have worked with customers; and
  • the type of conversion rates typically experienced.

Marketers should proactively provide affiliates with this critical merchandising information to help them work effectively for their brands.

Give affiliates relevant and timely content, such as how-to articles, important/relevant trends and customer reviews. Provide affiliates with compelling creative assets, including valuable promotions and special offers. Offering great resources for content can help affiliates perform better on natural search and/or increase the clickthrough rate of an advertiser’s promotions by establishing credibility with prospects.

Likely the most substantial change affiliates have had to deal with in recent years is the emergence of social media. Social media has opened up many new opportunities for affiliates. Marketers should seek out affiliate partners that add value by actively embracing this new medium.

Social media offers affiliates an additional distribution channel to interact with consumers. Similar to brands, affiliates use social media to gain followers, generate traffic, distribute offers and promotions, and drive conversions for retailers. Social media enables affiliates to engage more with consumers than ever before, creating deeper relationships with consumers who opt in as brand advocates by becoming fans on Facebook or followers on Twitter. Seek out affiliate partners with loyal user bases; social media prowess often provides a good indication of this loyalty.

Careful consideration to these crucial questions will help marketers better understand which affiliates are their best channel partners and which might have the most untapped potential. After all, the original performance marketing channel is here to stay. Updating one’s view of the channel will help you remain strong and keep a competitive edge.

* Special thanks to contributing authors Leo Dalakos and Megan Halscheid of Performics.

Getting the Most Out of Back-to-School Marketing

So, how should marketers redefine their back-to-school efforts to capitalize this time of year? To capture peoples’ interests during the active summer season, marketers must incorporate multichannel efforts to facilitate on- and offline engagement. Search continues to be a proven marketing channel, while implementing social and mobile marketing efforts has shown extensive promise, particularly for back-to-school retailers offering special deals and promotions.

As summer hits its peak, shoppers begin to think about heading back to school and retailers attempt to redefine the back-to-school season. Staples recently declared that the “official” back-to-school season starts on July 14, for example.

However, this time of year is less about defining specific dates and more about redefining ways to reach the right audience at the right connection points. Earlier this month, for example, Google reported that back-to-school queries increased 15 percent compared to the same period in 2008, and that searches on back-to-school shopping usually uptick in June with search activity lasting through late September.

The expanse in the back-to-school shopping season can be attributed in part to the 49 percent of back-to-school shoppers planning to spread out their purchases in order to distribute the cost over a longer period of time, according to a survey by PriceGrabber.

So, how should marketers redefine their back-to-school efforts to capitalize this time of year? To capture peoples’ interests during the active summer season, marketers must incorporate multichannel efforts to facilitate on- and offline engagement. Search continues to be a proven marketing channel, while implementing social and mobile marketing efforts has shown extensive promise, particularly for back-to-school retailers offering special deals and promotions.

In “S-Net (The Impact of Social Media),” a recent report from ROI Research, sponsored by my firm, Performics, when asked which types of content respondents would be interested in receiving from companies on social networks, 49 percent said they look for printable coupons on Facebook while 50 percent of those on Twitter seek notification of sales or special deals.

With these findings in mind, marketers should consider using social networks like Facebook and Twitter to promote special offers on back-to-school items to drive people in-store. Mobile marketing is another effective channel for back-to-school offers. It provides marketers with a more direct way to ensure purchase consideration through the use of text alerts or mobile coupons, in addition to complementary efforts in search and social marketing.

Performics helps clients prepare their back-to-school multichannel marketing efforts on a variety of levels. We recently teamed with one leading technology company to roll out its back-to-school marketing campaigns in early June, using some innovative tactics to capture audiences. For the first time, we implemented vanity display URLs and Google sitelinks in search campaigns to draw shoppers to the client’s back-to-school offerings. Our team also built a list of seasonal keywords around coupons, deals and discounts, supplemented by heavy social marketing campaigns promoting back-to-school products.

Another client, a popular apparel retailer, launched its back-to-school promotions in early July in anticipation of sales increases peaking at the end of this month. It offered shoppers the chance to receive a free smartphone if they purchased online or tried on featured clothes in-store. Advertising online via Facebook campaigns and paid search during back-to-school season, the retailer is coordinating on- and offline efforts by also offering free shipping and 30 percent off on back-to-school items.

Overall, marketers that successfully integrate multichannel efforts stand the best chance of getting the most bang out of their back-to-school buck. Marketers should look to engage back-to-school shoppers through various touchpoints throughout the season, not just at the end of August. Most importantly, manage expectations accordingly and measure marketing efforts often to reap the most reward.

Determining how shoppers respond to back-to-school campaigns and following trends throughout the season can also help brands set successful strategies for the upcoming winter holiday season. — Special thanks to contributing authors Andrea Vannucci and Maren Wesley.

Getting the Most Out of “Back-to-School” Marketing

As summer hits its peak, shoppers have begun to think about heading back to school and retailers are attempting to redefine the back-to-school season.

As summer hits its peak, shoppers have begun to think about heading back to school and retailers are attempting to redefine the back-to-school season. For example, Staples recently declared that the “official” back-to-school season starts on July 14. However, this time of year is less about defining specific dates and more about redefining ways to reach the right audience at the right connection points.

Earlier this month, Google reported that “back-to-school” queries increased 15 percent compared to the same period in 2008, and that searches on back-to-school shopping usually uptick in June with search activity lasting through late September. The expanse of the back-to-school shopping season can be attributed in part to the 49 percent of back-to-school shoppers planning to spread out their purchases in order to distribute the cost over a longer period of time, according to a survey by PriceGrabber.com.

So, how should marketers redefine their back-to-school efforts to capitalize on this time of year? To capture peoples’ interests during the active summer season, marketers must incorporate multichannel efforts to facilitate on- and offline engagement. Search continues to be a proven marketing channel, while implementing social and mobile marketing efforts has shown extensive promise, particularly for back-to-school retailers offering special deals and promotions.

In “S-Net (The Impact of Social Media),” a recent report from ROI Research, sponsored by Performics (my firm), when asked which types of content they’d be interested in receiving from companies on social networks, 49 percent of respondents said they look for printable coupons on Facebook while 50 percent of those on Twitter seek notification of sales or special deals. With these findings in mind, marketers should consider using social networks like Facebook and Twitter to promote special offers on back-to-school items to drive people to their stores.

Mobile marketing is another effective channel for back-to-school offers. It provides a more direct way to ensure purchase consideration through the use of text alerts or mobile coupons, in addition to complementary efforts in search and social marketing.

Performics helps clients prepare their back-to-school multichannel marketing efforts on a variety of levels. We recently teamed with one leading technology company to roll out its back-to-school marketing in early June, and turned to some innovative tactics to capture audiences. For the first time, we implemented vanity display URLs and Google sitelinks in search campaigns to draw shoppers to its back-to-school offerings. Our team also built a list of seasonal keywords around coupons, deals and discounts, supplemented by heavy social marketing campaigns promoting back-to-school products.

Another client, a popular apparel retailer, launched its back-to-school promotions in early July in anticipation of sales peaking at the end of this month. The retailer’s promotion offers the chance to receive a free smartphone when you purchase online or try on featured clothes in-store. Advertising online through Facebook campaigns and paid search during back-to-school season, the retailer is coordinating on- and offline efforts by also offering free shipping and 30 percent off back-to-school items.

Overall, marketers that successfully integrate multichannel efforts stand the best chance of getting the most bang for their back-to-school buck. Marketers should look to engage with back-to-school shoppers throughout the season, not just at the end of August, and through various touchpoints. Most importantly, manage expectations accordingly and measure marketing efforts often to reap the most reward.

Determining how shoppers respond to back-to-school campaigns and following trends throughout the season can also help brands set successful strategies for the upcoming winter holiday season.

Special thanks to contributing authors Andrea Vannucci and Maren Wesley.

Industry Experts Weigh In: Marketing That Matters

Earlier this month, I participated in a professional development and networking event for alumni of the Integrated Marketing Communications (IMC) graduate program at Northwestern University’s Medill School of Journalism. I spoke with some of my colleagues about how they define performance marketing and what they envision for the next generation of performance marketers, and they shared valuable insights about its growth and accountability.

Earlier this month, I participated in a professional development and networking event for alumni of the Integrated Marketing Communications (IMC) graduate program at Northwestern University’s Medill School of Journalism. I spoke with some of my colleagues about how they define performance marketing and what they envision for the next generation of performance marketers, and they shared valuable insights about its growth and accountability. Here’s what a few of them had to say:

Tom Collinger, associate professor and sector head of direct, e-commerce and search marketing and associate dean of Medill. Collinger is also president of The TC Group, a marketing strategy consulting firm, and serves as a member on the editorial advisory board for the Journal of Consumer Marketing.

CG: What does performance marketing mean to you?
TC: Performance marketing is, after all, redundant, isn’t it? The goal of all marketing and communications is to grow connections and engagement that results in sales performance. I believe the term has grown in popularity recently as a result of the growth in measureable outcomes to marketing initiatives, but, really, can you ever imagine a marketing communications initiative funded without a stated expectation of results? I can’t either. So, for me, performance marketing means an expectation of results as a consequence of the strategies used to promote a brand.

CG: What advice do you have for the next generation of performance marketers?
TC: I’d advise the next generation of performance marketers not to fall victim to the belief that an immediate and measureable result to a prompted marketing communications initiative is always the best basis of proving success. Rather, consider each and every initiative in the context of how a business, brand or service is made more or less relevant to a customer. Each initiative is a brick that either builds or erodes the wall that becomes the barriers to switch.

Ron Jacobs, president of Jacobs & Clevenger, an independent multichannel direct digital marketing agency. Jacobs started a professional program in direct marketing at DePaul University in 1990, and in 2006, he began an endowment for the program. He also devoted 17 years as a senior lecturer in the Medill IMC program. Jacobs co-authored the “Eighth Edition of Successful Direct Marketing Methods,” the best-selling book on the tools and techniques of direct marketing.

CG: What does performance marketing mean to you?
RJ: I find myself constantly reminding my clients, staff and students that performance marketing is direct response marketing, and many of the traditional tools and techniques of direct marketing apply. The ultimate objective should be conversions or sales. The messages and calls to action need to reflect the keywords that got prospects there in the first place. Moreover, while you may not be able to measure everything, you can easily find three to five key performance indicators that make sense for your business.

CG: What advice do you have for the next generation of performance marketers?
RJ: Today, virtually all marketing communications are accountable; it’s the new normal. Performance marketing is a leader in this transition. Marketers, media and agencies are shared stakeholders in this change; we all need to find ways to adjust our business models to accommodate it. 
Whether seeking direct marketing or broader results, the accountability of the web continues to drive the evolution of performance-based approaches toward game-changing methods to better assess and optimize performance.

Final thoughts
Initially an arms race to get the right technologies in place, performance marketing has become more consumer centric as the practice begins to mature. Successful performance marketers will understand consumers and how they use technology to find information and ultimately make decisions.

The measurement process for performance marketing almost always includes generating response; collecting information; and analyzing large data sets, complex systems and partnerships — all focused on the consumer as a participant in the exchange. This intelligent data management links the business intelligence engine with the execution engine to reduce marketing waste, optimize marketing spend and scale quality implementation for improved return on investment.

As these industry experts stated, consumers’ perspectives will only continue to gain significance in performance marketing. Marketers must find ways to be relevant, and performance marketing offers several reliable methods to connect with high-value audience segments, quantify success and keep campaigns accountable.

How do you envision the future of performance marketing? Feel free to share your thoughts in the comments thread below or email me at craig.greenfield@performics.com.

Craig Greenfield’s Redefining Performance Marketing: 3 Ways to Turn Earned Media Insights Into Paid and Owned/Organic Gold

It’s quickly becoming common knowledge that earned media outlets, if properly mined, can provide unique insights into what resonates most with marketers’ audiences. With the proper tools and techniques, marketers can begin to answer questions such as the following:

It’s quickly becoming common knowledge that earned media outlets, if properly mined, can provide unique insights into what resonates most with marketers’ audiences. With the proper tools and techniques, marketers can begin to answer questions such as the following:

  • Who’s talking about your brand?
  • How’s your audience discussing your brand?
  • What themes, topics and links permeate the conversation?
  • What are users querying about your brand or the vertical in general?
  • What’s the phraseology they’re using?

Simple collection methods include using social listening tools to understand customer conversations on social sites; managing profile pages on Facebook and/or Twitter to gain customer feedback; and mining query data to get a better idea of customer intent. However, to turn earned media insights into paid and owned/organic gold, brands need practical tactics for leveraging and applying the information.

Moving from insights to action

Earned media can create more effective paid media campaigns through the use of social listening tools to build out keywords for a client’s paid search campaign. Performics has done this for a number of clients, specifically in the apparel vertical. After a retailer’s recent product launch, Performics used its proprietary social listening tool to identify top themes that its client’s customers were discussing on social sites.

Performics focused analysis on brand-related conversations, and then filtered those posts by topic to only view conversations around the new product line. The retailer was able to identify all relevant phrases and terms, such as “military jacket” and “bf blazer,” that customers associated with its new product launch.

To assess the value of these newly identified phrases/terms, the retailer took into account the sentiment, frequency and reach of each. Performics’ listening tool assigns sentiment — positive, negative and/or neutral — to every customer post collected. Any customer post or tweet, for example, that included the term “military jacket” was assigned a sentiment value. The posts referring to “military jacket” were generally positive; therefore, that term was assigned positive sentiment.

The social listening tool also helps evaluate the influence of those selected phrases/terms. The retailer was able to assess the value of “military jacket” compared to other terms by understanding the number of customers using this term (frequency) and the number of followers exposed to the term (reach). The tool helped to quickly identify the most valuable phrases/terms relevant to the brand and product that were appearing within customer conversations. The phrases/terms then became the baseline for building out additional keywords for the new product launch.

Varied application of insights

How can marketers apply information gained from earned media? Three suggestions to get started include the following:

  • keyword buildout for search campaigns (paid and organic);
  • content campaign development; and
  • creative development.

As more consumers take to social sites to converse, performance marketers should continually be mindful of ways to make insight from these conversations actionable.