Digital Marketing Course - Performance Marketing terminology (Video 2)

Introduction

This tutorial provides a comprehensive overview of performance marketing terminology as discussed in the Digital Marketing Course by Senator We Run Ads. Whether you are a beginner or looking to enhance your knowledge, this guide will help you understand key concepts, roles, metrics, and buying models in performance marketing.

Step 1: Understanding Performance Marketing

• Performance marketing is a digital marketing strategy where advertisers pay only for measurable results such as clicks, leads, or sales.
• This approach allows advertisers to optimize their marketing budgets by focusing on actions that lead to conversions.

Step 2: Key Roles in Performance Marketing

1. Advertiser: The individual or company that wants to promote their product or service.
2. Publisher: The platform or entity that displays ads, such as websites or social media channels.
3. Ad Network: A service that connects advertisers with publishers to facilitate ad placements.
4. Agency: A third-party organization that manages marketing campaigns on behalf of advertisers.
5. Tech Platforms: Tools and software that support marketing efforts, like analytics and ad management systems.

Step 3: Understanding Key Performance Indicators (KPIs)

• KPIs are measurable values that indicate the success of a marketing campaign. Common KPIs include:
  • Click-through Rate (CTR)
  • Conversion Rate
  • Cost Per Acquisition (CPA)
  • Return on Investment (ROI)

Step 4: Exploring Buying Models

1. Cost Per Click (CPC): Advertisers pay each time a user clicks on their ad.
2. Cost Per Mille (CPM): Advertisers pay for every 1,000 impressions their ad receives.
3. Cost Per Install (CPI): Common in app marketing, where advertisers pay for each app installation.
4. Cost Per Action (CPA): Advertisers pay when a specific action is completed, such as a purchase or sign-up.
5. Cost Per Lead (CPL): Advertisers pay for leads generated through their ads.
6. Cost Per Day (CPD): A flat rate for displaying ads, often used for masthead placements.

Step 5: Types of Advertisers

• Understand the different types of advertisers to tailor your strategies:
  • B2C (Business to Consumer): Targets individual consumers.
  • B2B (Business to Business): Focuses on selling products/services to other businesses.
  • D2C (Direct to Consumer): Brands sell directly to consumers, bypassing intermediaries.
  • B2G (Business to Government): Companies that provide services or products to government entities.

Conclusion

In summary, performance marketing is a powerful strategy that allows advertisers to track and pay for results effectively. Understanding the key roles, KPIs, buying models, and types of advertisers is crucial for success in digital marketing. To deepen your knowledge, consider exploring additional resources, such as the quizzes and courses linked in the video description, or follow the provided links for further learning.