Characteristics of Performance-based Marketing in 2018
1. Soon, many companies will make performance-based marketing their sole area of concentration.
Performance-based marketers have traditionally tried to catch all the fish at once, pursuing traffic to offer to an endless myriad of websites, even if they didn't end up with much to give, nor did they have a major reputation. However, since 2018 advertisers have zeroed in on tighter niches of big name, broadly followed, well-known influencers. The most strategic method is to use just the few leading influencers in your specific area of concentration. Then, from there you can continue onto other influencers based on how they work out for your niche.
2. Native is the biggest recent change in performance-based marketing.
Native advertising entail ads that correspond to the style, appearance, and tone of the environment they are located in, which are rendering banner ads obsolete. Marketers are turning more and more to sites such as Instagram to promote services and goods that users are unlikely to pinpoint as ads or be irritated by them.
The difference between the viewing of native ads as opposed to display ads is 53% in favor of the former. Soon, in 2020, native ads are predicted to account for 75% of all ad revenue. For best results, the most fruitful strategy is to have the ads blend into the content and be enjoyable.
3. Advertising has become more than just display now.
On top of the current mobile platform this advertising is currently provided on, it will soon delve into video, audio, and whatever other technology that’s developed. By 2021, Business Insider believes video will account for 82% of all internet traffic. Live streaming will grow to 5 times its current popularity, from 3 to 13% of internet video traffic by 2021.
No one can say for sure the role that audio will play in searches; however, one would be foolish not to track its trajectory. The wisest of companies will also find some way to integrate it into their marketing. Currently in the US, eMarkerter reports, 45 million voice devises are already being used.
Make sure you stay one step ahead by testing formats other than display, keep note of where traffic is coming from, and what content type your traffic audience likes best.
4. The dominating trend is pointing toward transparency.
There has been controversy as of late among several big-name brands and influencers (the Warner Brothers and Kardashians for example) for their unwillingness to reveal those paying them for ads. In addition, New General Protection Data Regulation (GDPR) has now been passed by the FTS with an aim to ensure compliance and transparency to assuage this concern.
Tom Sanchez of Target Zone commented: “Marketers will need to ensure that those selling advertising to them and in cooperation with them are following the GDPR. Prior verifications are crucial, and everyone involved, especially your company, must be sure that all involved parties have the appropriate permissions and transparency in regards to the collection, tracking, and processing of your customers’ personal data. Smart tools will be crucial in dealing with the type of data used and the way it is handled. With 2019 approaching, it’s important that you ask those associated with you if they are in compliance before May and give them all the relevant information regarding their adherence to it.”
5. The customer's needs are always the priority.
For this reason, it's perfectly logical that the industry is changing to suit this with a 50% increase in the past year in mobile purchases. Cell phone integration will be the key to engaging customers during the rest of their experience with an aim to understand them, better engage them, and perform retargeting more efficiently.
Sam Mettinson from JS Strat said: “In the following year, there will be a trend of far more companies and individuals utilizing smart methods of performance-based marketing. Their utilization will increase in light of (i) the greater spread of the performance-based marketing base (minimize risk), (ii) superior application of the technologies out there (better attribution, broader audience, more efficient decisions), and (iii) inference made following profound study of the true phenomena in the program (thanks to benefits ranging from different types of affiliates over the course of the customer experience to the lifetime customer value or performance-based referred conversions).”