Performance Marketing and Influence Marketing10-Apr-2021
The primary concern of every brand is to reach out to their target customers and make sales. This can be attained through the use of various marketing strategies, which entail elements laid out as stepping stones to attract customers and bring products and services to them. Various marketing strategies are employed by brand owners to draw in their potential customers. This article is an exposition into the relationship between two common marketing strategies which are performance marketing and influence marketing.
Performance Marketing Vs Influence Marketing
In the past, marketing campaigns were usually done by simply running ads on media platforms, without being able to necessarily track the level of response or effectiveness of an advert.
Performance marketing is a model that adopts the payment for an advertisement based on performance, in terms of click and conversion rates. This ensures that the resources spent on marketing are profitable, and finances are not wasted, unlike the traditional forms of advertisement, where payments are made upfront without the consideration of performance.
The benefits of performance marketing hover around the power given to the advertiser, great returns on marketing investments, transparency, and easy tracking.
Influence marketing is a form of digital marketing that involves the use of influencers, people with a large number of following, to endorse and promote brands by leveraging on the trust and confidence followers have in their influencers. Influence marketing also employs the use of experts in a particular field to promote and mention a brand to their audience on specific platforms.
In this model, partnerships are formed between brands and influencers and are bound by an agreement with specified terms and conditions. Influence marketing is a very quick way to the hearts and minds of target customers and is usually followed by a rise in brand recognition and popularity.
Relationship between Performance Marketing &Influence Marketing
While these two marketing models work independently, a unique synergistic relationship between the two has a great potential to scale up the marketing game. The Integration of the performance model in influence marketing has been on the rise and is viewed by many brand owners as the Holy Grail as it incorporates two high-performing marketing strategies.
This is termed Performance-based influence marketing. With this integration, influencers are only reimbursed per their performance. The easy tracking feature of performance marketing comes to play and is demonstrated by analytics and other performance metrics such as click rates, newsletter sign-ups, sales generated through influencers' special codes. In this age of data prominence, several analytic tools and platforms are availed to ease the tracking process.
In conclusion, before deciding on adopting any marketing model, a lot of research has to be done and specific considerations as regards the brand in question should be made. Every marketing model has pros and cons and should be weighed in light of this. Performance-based influence marketing is promising regarding the numerous benefits it offers. Every brand owner must settle for that which works best for their brand.