Understanding Performance Marketing as it is?

 

What is Performance Marketing

Unlike digital marketing, performance marketing differs because it is not organic and has conditions attached.  Performance marketing includes PPC Ads like Google Ads, SEM, or social media marketing. The latter is paid advertising on various social media like LinkedIn, Facebook, and Instagram to name a few. This form of marketing is growing day by day and the digital market size was USD 321 billion in the year 2022 being a subset there is no stopping.

Advertisers wish to make optimum use of the money they invest in marketing their products and promoting their brands. The scheme applies to the promotion of professional services or any meaningful purpose the advertiser could have. Although restricted by conditions the agency or publishers should be able to extract the Ad cost through a successful CTR-to-investment ratio. The click-through rate(CTR) should be very high to yield revenue for the company or agency. 

The hired company promising optimum performance needs to have the necessary expertise and experience. They should design the right advertisement and promotion strategy.  Remember organic digital marketing which is a part of these campaigns differ from paid advertisement. The specialists in the team should be experienced in advertisement platforms. They should have a good grasp of various formats and options offered by publishers like Google Ads and social media.  The specialists should be able to extract maximum results from the publishing platforms to fulfill payment conditions set by the client.     

Marketing Channels

The channels most commonly used are search engines, social media, and diverse web content. In this form content creation is most important whether it is Ad Title and description or long form or short form writeups. Video marketing can also play a major it should well-made ad films that will attract positive social signals and a humungous number of subscribers.      

Social media is used to attract the target audience to the landing page of the advertiser's website and the same role is played by SEO or search engine optimization campaigns.   Using social media and SEO to meet the client's objective is the primary goal of the hired agency. Banner Ads and Native Ads (Sponsored Videos)

Ad Types

This strategy of combining various fronts is and compliments the core i.e advertisement. The types of ads usually resorted to are:

·         CPC or Cost Per Click

·         CPM or Cost Per Impression

·         CPL or Cost Per Leads 

·         CPA Cost Per Acquisition

·         CPS Cost Per Scale

Performance marketing is payment made on the results. It is bound by conditions and challenges to the agencies involved. To order these services performance marketing agency should have strong creative ability. Although this is a subset of digital marketing the approach is leading to the carving of a separate niche.  

RCom in Trouble - Aircel Merger

Reliance Communication Company owned by Anil Ambani is facing a crisis. Already indebted to the tune of 45000 plus crore rupees there seems no hope for a turnaround. 

The company's core business revenue is dropping drastically on all fronts - voice and data. The steady decline is attributed to customers switching to other service providers and stiff competition for RIL Jio. The company has reported losses subsequently from the last few quarters due to a reduction in usage affecting revenue per customer. The company has failed to retain or increment its mobile broadband customers.    

The shares of ADAG companies have shown a constant downfall. RCom has to service its debt in order to retain its position in the market somewhat. RCom Aircel merger which has been approved by concerned bodies will assist in business recovery hopefully. This will come in form of a demerger with Aircel & Dishnet Wireless Limited. This transaction will substantially reduce RCom's depth as well as Aircel's depth.         

The merger will result in making it one of India's largest private sector companies. After the merger, RCom will hold a 50% share in Aircel Ltd.