Introduction to Digital Marketing
Approaches to Performance Marketing | Product Management
Marketing is a concept as old as human race that has changed its ways with time. Even though many old forms of Marketing still persists, new forms are providing faster and measurable results.
One major change in this era is the onset of internet, and with it came search and social media platforms. With the current ease of connecting to internet just by few flicks of wrist and thumb, following situation is way too common:
“I don’t feel like cooking dinner, we should order in.”
“Okay”, takes out mobile and switches to Google search, “what do you have in mind?”
“Something Italian!”
“Cool”, types in ‘Italian food near me’ in Google search, “there are 3 near us. ABCDEF has 4.5 ratings on Google My Business. We should try this tonight.”
“Okay!”
With the busy life that people live, they are commuting lesser and lesser by day. In leisure time, moving from one place to another is a choice; and so is choosing your business from various platforms.
Among so many choices how do you maintain your business as the first choice? First, is of course, maintaining quality of product; and second is letting everyone know you exist! How do you do that? With the help of a performance marketer.
What does a Digital Marketer do?
The job of a Digital marketer is to make sure your existing and possible clients are aware of your business. This can be done by maintaining the following:
- Updated Social Media pages/accounts.
- Updated websites with proper SEO. (Reliable content creation)
- Updated local directories.
- Run advertisements on various platforms.
Do note, all of these are ongoing work. With ever-changing world, a one time activity does not lead you anywhere.
Digital Marketing Approach
Top-Down Approach
This is the way where the marketer focusses on building up, reaching a goal, and then refining that goal for better results.
Bottom-Up Approach
This is the way where the marketer understands the problems you are facing, sets up goal accordingly, and then try to reach it.
Performance Marketing Approach
Performance Marketing is different from conventional Digital Marketing in terms of course correction attitude. In simple words, a performance marketer reads into analytics, projects, and delivers the best possible results. Performance Marketing is the measurable marketing.
Mixed Approach (Data Oriented Approach)
This is the way where the marketer understands the goal, builds up your system, project possible scenarios with data analysis, and reaches the best curated goal.
What is the best result?
- Identifying useful Target Group (TG), i.e, the group of people who are actually interested in your project and has highest chances of converting into customers.
- Spending optimal Cost Per Acquisition (CPL, CPC, CPP etc). Since money is involved you might want to spend the least, but that is not always the best; many a times you need to find the optimal spend from which you receive the highest output.
The Data Oriented Approach
The information gets a little technical from here. I will try to keep it as simple as possible.
Understanding End Goals
Every projected end goal should be taken as a problem statement and thus solved. Hence, the marketer takes the end goal, break it down, evaluates and creates a strategy.
Identifying the Opportunities
As stated earlier, the job of Digital marketer is to maintain the appearance of the business on social media, local directories, etc. Opportunities are identified here. Marketer needs to figure which platform to focus upon according to your business and goals.
Defining the Strategy
Based on the opportunities, the marketer needs to define the User Persona (Demographical, Geographical, Psychographical)
- Demographical: This is the basics about the user; Gender, Age, Marital status, Income etc.
- Geographical: This is the location of the user; Example- if it is a food delivery problem statement, you might consider users in the range of 5 kms from your restaurant.
- Psychographical: This is the study of behaviours and interests; What should the user’s interest be in order to take interest in home food delivery?
Distributing in Target Group
Target groups (TG) are the audience that will see your advertisements. Since each click costs you money, you would want future customers to see the advertisements.
While it is not possible to show it to your future customers only, the marketer should be able to find the Goldilock’s TG (not too broad, not too narrow; just right!)
Calculating Media Budget
There are tools available that provides reports through which the marketer can find the Cost Per Acquisition, Cost Per Lead, Cost Per Purchase, Cost Per Conversion etc for a TG for the respective platform.
The marketer uses this data to create a media budget for you, where he/she estimates the monthly spends, and provides you with budget plan.
This is also the step where the marketer choose the right platform for you. Not every business needs to run ads everywhere. For example, your clothing store business can start well by only focussing on Instagram Ads.
Creating Campaign Media Plan
Campaign Media Plan is the plan that the marketer shares with the business (i.e., you)
This plan includes:
- the projected TG,
- the focussed marketing platforms,
- the estimated budget,
- the estimated Revenue,
- along with the course correction measures which will be taken in future, and
- assumptions.
A performance marketer always keep in mind that quality of leads is more important than the number of leads.
Are you looking to grow your business? Reach out to us at support@prohed.com for best Performance Marketing Solutions.
