The performance marketing trend has grown in the advertising world. What is performance marketing? It’s somewhat similar to influencer marketing but based on outcomes. According to BigCommerce:
“Performance Marketing is a combination of paid advertising and brand marketing put together, but only paid out once the completed desired action takes place.”
According to Eyal Gutentag, performance marketing expert, there are six performance marketing channels expected to grow in 2021:
1. Social Media Advertising
Over 3.48 billion people worldwide use social media. 72% of the U.S. population uses at least one social network. Platforms like Facebook, Instagram, LinkedIn, Twitter or Pinterest provide an engaged audience for messaging. Each platform appeals to a different demographic. Whereas TikTok and Snapchat attract younger viewers, LinkedIn attracts business professionals.
Social media is a great way to generate leads and build brand awareness through impressions, likes, shares, and comments. But just because someone likes your page doesn’t mean they open their wallet. That’s why it’s beneficial to add paid content to your social media marketing strategy.
2. Programmatic Display Advertising
The Internet is a big place. There are websites for all kinds of interests. Targeted digital banner ads on websites help reach your ideal audience. For example, if you sell baby products, place ads on parenting websites.
3. Native Advertising
Native advertising appears more like an informational article. It doesn’t always look like an ad. The benefit is: it offers a much softer sell than traditional advertising. Its goal is to educate and inform consumers.
4. Search Engine Marketing (SEM)
Search Engine Marketing (SEM) involves strategies to increase your ranking in search results. In 2020, 68% of all website traffic came from organic and paid searches.
Instead of using organic tools such as Search Engine Optimization (SEO) to rank higher in search results, some brands pay to be listed at the top of the results. These ads are usually pay-per-click ads where the advertiser only pays when someone clicks on the ad.
5. Mobile Advertising
One of the most popular ways to target an audience is through their mobile devices. Mobile advertising revenue is expected to reach $290 billion in 2021. We take our mobile phones with us everywhere. And brands can deliver ads right to your phone in the apps you use every day.
6. Video and CTV
Video ads aren’t just for television anymore. Embed an engaging video before other video content, such as news stories. Videos can also run on Connected TV (CTV) channels like Hulu, YouTube, and Sling. By 2022, 82% of internet traffic will be through video. The number of people watching CTV is projected to increase to over 63% by 2023.