It would seem that today's marketing techniques and easy access to information make advertising a business a breeze. However, marketing strategies are unknown to 41% of small business owners. That's nearly half! B2B companies may appear to have abandoned a successful marketing strategy at times.
Hold on a second; it's possible that their confusion stems from the abundance of digital marketing strategies and marketing agencies. Take, for instance, performance marketing and growth marketing, also known as growth hacking. The owner of a B2B business might be curious about the differences between the two, their advantages, and which will work best for their company. Perhaps both? Okay, I understand. There won't be as much confusing marketing jargon anymore. Let's start small and concentrate on the difference between growth marketing and performance marketing for the time being.
I've compiled a list of frequently asked questions about growth marketing and performance marketing in this article to help you decide which traditional marketing strategy is best for your company.
Is Growth Marketing The Same Thing as Performance Marketing?
Nope. The goal of growth marketing is to foster long-term expansion. It aims to keep and attract new customers to your business by trying out new strategies and failing quickly to find what works. On the other hand, performance marketing is a short-term strategy in which you pay for quick, measurable results. In contrast to growth marketing, you only pay for specific actions like sales, leads, and clicks.
Okay, let's get a little more in-depth once we understand the fundamental growth strategies.
How Does Performance Marketing Work?
A targeted marketing strategy known as performance marketing offers a return on investment (ROI) that is based on performance. Since you have paid for the actions that resulted in conversions, this lets you know that the marketing budget was well spent. Paid performance marketing encompasses all of it. Consider advertisements. Performance marketing knows where to put them and how to shape them to ensure that the money spent on advertisements pays for itself in sales that increase in number. Performance marketing channels are probably familiar to you, and you've probably used them and fallen in love with them. The best marketing strategies and channels are listed here. Affiliate marketing is when a company charges a fee in exchange for promoting its products. Now, websites and influencers must inform readers that the links they are asking you to click are affiliate links, not ordinary links. Do you remember those frequently shared posts on Buzzfeed titled "The Best Father's Day Gift Ideas"? Buzzfeed receives a commission from the sale of the products they recommend if you make a purchase after clicking on the links in these posts. Or, you know, when your favorite YouTube blogger includes the phrase "...link in the description below" at some point while you're watching them. Typically, that is also an affiliate link. Performance marketers adore social media advertising. Not just because it aids in their separation amen! but also because advertising on social media immediately reaches potential customers and motivates them to take action. Sponsored posts that appear in a user's timeline or feed are used in advertising campaigns to accomplish this. Advertising on social media and digital performance marketing go hand in hand. If you're thinking about using this strategy, make sure you work with a skilled targeting specialist or social media marketer.
Search engine marketing: Do you ever find that when you type the name of a company that interests you, the first four results are competitors? You can be that irritated rival! Paid advertising is used in search engine marketing (SEM) to ensure that your company's products or services appear at the top of the first search engine results page (SERP). But there is one caveat: While spending money on advertisements immediately increases your business's visibility in search results, organic search results generate more traffic than paid ones. Some studies even suggest that 70-80% of paid ads are filtered out by consumers. Simply put, humans are naturally suspicious.
Banner advertisements: Who on the internet hasn't seen one? We all recognize them: the distracting images that prevent you from enjoying the page's content. On the other hand, they might not even be noticed by users because they might be so subtle. You can place these ads on websites that are popular with people who are interested in your business. Ad blockers, on the other hand, cost money because we don't want banner ads to detract from the main reason we visit a page. Therefore, you might want to reconsider using them as your primary method of performance marketing because I have a feeling you don't want people to associate your company with annoying ads. There is also native advertising, which is when a paid advertisement blends in with the content of the page it is displayed on. It doesn't make you feel bad if it looks and feels like the page you're reading.
An illustration: You just finished reading an article and clicked on a suggested article at the bottom of the page. You are now on a blog about a business that sells something related to the title of the article. You didn't even notice that the suggested "article" was actually a native advertisement. Your sponsored content can coexist with other kinds of organic content thanks to native advertising. They don't attack you or interfere with how you use the system. Now, how can you tell if these performance marketing strategies are effective? Metrics for performance marketing allow us to make well-informed decisions about both current and upcoming performance marketing campaigns thanks to the valuable insights they provide. Marketers are also shown the effectiveness of each channel by these metrics' outcomes. Therefore, keep an eye on them to see if you're on the right path.
Impressions and clicks: Impressions show you how people look when they look at your app. joking aside, they inform you of the number of times a particular app or website has displayed your advertisement.
However, clicks, or the number of times people have clicked on your advertisement, provide the most straightforward method for determining ad engagement. Even though there is a lot of ad click fraud going on these days, tracking clicks allows you to determine whether or not people who see your ad find it appealing. It's also important to know, as pay-per-click (PPC) pricing for ad traffic is frequently used.
Rate of click-through (CTR) Wait a minute... There are clicks and there is a rate of click-through. Are they not comparable metrics? Not exactly. If you like abbreviations, the click-through rate, or CTR, is a metric that uses math. You basically divide the number of people who clicked on your ad by the total number of people who viewed the page it was on. You won't be able to see how frequently people who see your ad click on it without this metric. Therefore, CTR measures how well your ads are performing rather than just counting the number of clicks.
Cost Metrics: Many of performance marketing's metrics revolve around cost because it focuses on quickly returning and multiplying the money invested in campaigns:
CPC (cost per click):the money received each time someone clicks on your advertisement.
CPL, or cost per lead, shows how much it costs to acquire a lead.
CPS: Cost per sale used to evaluate affiliate links' effectiveness.
Cost Per Thousand (CPT) or Cost Per Mille (CPM):the price you pay for each 1,000 times your ad is seen.
CPA, or cost per action, is the amount of money you pay when the audience performs a specific action.
As may be obvious, these and a lot more execution promoting measurements target quantifiable outcomes. Now, let's look at when and why you should use performance marketing.
Goals For Performance Marketing
Why do we devote all of our marketing funds to performance marketing? Because we need financial results right now, which are measurable. The objectives of performance marketing efforts are as follows:
Increase the website's traffic. Performance marketing makes it simple to create a landing page you want your audience to visit. CPA will also make it simple to evaluate this strategy's efficacy. Increase your lead generation and customer acquisition. Your engagement team typically handles this, but performance marketing channels can be of great assistance.
Increase sales. Yes, at the end of the day, any business wants to make money, and performance marketing makes that happen faster than growth marketing.There are no grudges, just business.
Moving on to the reasons why you should or shouldn't use this marketing strategy.
What Are Performance Marketing's Advantages And Disadvantages?
The fact that your marketing expenditures can be tracked is one of the most significant benefits of performance marketing. Additionally, you are aware of the significance of accurately measuring ROI for a company. In addition, it improves the advertising process as a whole and expands your advertising's reach:In contrast to nurturing potential customers for months in order to slip in that one selling link, thousands of people will see your advertisements in a matter of days. Performance marketing should not, however, be the sole focus of your marketing budget.
First, some bloggers and affiliates might not be reliable. If you notice that your performance marketing partner is dishonest, doesn't show you previous results with other clients, or constantly changes the details of their partnership, you should probably end it right away. I'm unsure which is worse: losing your reputation or falling victim to fraud. No, the second is worse... Two, the so-called vanity metrics, like the number of followers or views, may look great, but they have no real effect on your company's bottom line.
Last but not least, if you only concentrate on performance marketing, you run the risk of neglecting long-term brand objectives, which are often overlooked in favor of immediate results. Growth marketing must also be taken into account for this reason.
Growth Marketing: What Is It?
By generating organic traffic and raising brand awareness, growth marketing targets long-term growth. It's a comprehensive strategy that keeps customers coming back. The B2B buyer journey has evolved, you see. Building your brand and creating high-quality marketing content that solves problems are the two most important aspects of B2B growth. Therefore, marketers put money into growth campaigns to establish connections with users through particular channels. Channels for growth marketing Growth marketing adapts to your needs. I apologize for the pun, which was definitely meant, but it is true: Growth marketers try to connect with you, have a conversation with you, and give you something in return for your love. Therefore, their strategies and channels are not your typical glitzy banners and catchy tunes.
Marketing via email: Okay, bear with me. I am aware that you are getting tired of receiving email after email .However, consider the emails you actually look forward to reading. Although I am aware that I will delete ten of the emails, I am going to open the eleventh one when I see the title from the company that has sent me ten helpful emails. Therefore, emails are not bad; They are bad because the writing is bad. Before you give up on this time-tested growth marketing channel or send another "Hello [name]," think about that. SEO optimization is an essential component of your growth marketing strategy, whether you like it or not. People have been trying to figure out how to get around Google's crawler so that your website rises to the top over the years. But here's the truth: Utilize keywords wisely, work with an expert in SEO, and keep writing great content. That is all that is required to maintain your website's visibility to your audience and increase organic traffic.
Content advertising: There are a variety of content marketing strategies available to B2B firms:
Case studies, reports from research, eBooks, videos, infographics, podcasts, and more. Also, the Content Marketing Institute publishes B2B Content Marketing Insights annually. Furthermore, the 2022 report is a phenomenal delineation of what works for B2B organizations content-wise — compassion. Regardless of the type, emphatic content improves customer experience and builds trust.
So Keep In Mind
Content shouldn't promote anything. While copy sells, content educates, piques interest, adds value, or aids in resolving issues faced by your target audience. When developing your own B2B content marketing strategy, keep that in mind. A more comprehensive, long-term growth marketing strategy is the most effective marketing strategy for a startup or SMB. You'll be able to grow a loyal clientele as a result of this. In addition, it encompasses a vast array of marketing channels within the marketing funnel.
Performance marketing is the way to go if your company is a well-known brand in the B2B market. Advertising, social media campaigns, affiliate marketing, and other activities necessitate a larger budget. Be that as it may, it's more qualified for one-off, designated showcasing lobbies for multi-scale organizations.