Performance advertising, as an advertisement that can directly reach users, has blossomed everywhere on the Internet. Today, let’s learn about performance advertising together~
1. Background
In traditional portal advertisements and search advertisements, the presentation of an advertisement is aimed at all the audiences it can reach, and the people who are really interested in the advertisement information are only a very small part of the audience (niche crowd), the result is bound to be Cause a lot of waste of advertising costs, and the audience will feel harassed.
With the development of big data, performance advertising has found its own growth space, which is a major feature and advantage of Internet advertising. With the help of intelligent marketing platforms, Internet media and the use of big data, an advertisement is no longer aimed at everyone like traditional advertisements, but for people in need, and even everyone can see different advertisements . The result of this is that advertising is no longer advertising, but a kind of information. Not only do consumers not feel being harassed, but they have a sense of freshness.
2. Definition
Performance advertising is an advertising system based on performance, and advertisers need to pay for the measured results.
Popular explanation:
Performance advertising usually refers to media purchased in the form of bidding, such as bidding information flow advertising, search word advertising, affiliate advertising, etc., to pursue consumers' timely interest-enhancing behaviors. These behaviors usually include but are not limited to: clicking on advertisements, filling out purchase lead forms , dial the customer service hotline, apply for use, bookmark products, add to shopping cart, purchase products, etc.
3. Purpose
The marketing purpose of performance advertising is to drive sales (or other consumer action). Evaluate specific effect data, such as CPC, CFA (activation, registration, purchase, etc.), ROI, etc., but more often care about the conversion of effects, cost performance and sales. In layman's terms, the purpose of advertising is to achieve effect transformation . The higher the ad conversion rate, the better the effect of the performance ad.
4. Billing method
The more common billing methods are:
(1) CPA: (Cost Per Action) The cost paid by the advertiser for each action, also known as pay-per-effect. It refers to the actual effect of advertising delivery, that is, the billing is based on the valid order that is responded to. The actions here can be understood as registration, transaction, click, download and installation, etc. CPA advertising has certain risks for the website, but if it is successfully launched, the income is also very optimistic in comparison. The calculation formula of CPA advertising = total cost / conversion times.
(2) CPS: (Cost Per Sales) is billed according to sales, that is, a method of charging according to the actual number of products sold after the advertisement is clicked. Every time a user completes a transaction, the website owner will get a corresponding commission, which avoids the risk of the advertiser to a certain extent. CPS ads are more suitable for shopping, shopping guide or website navigation websites, which need to bring accurate traffic to bring conversion rate.
(3) CPM: (Cost Per Mille) is billed according to the amount of impressions, and the corresponding advertising fee will be generated for every thousand people who browse the advertisement. Refers to the average advertising cost shared by everyone who sees the advertisement during the process of advertising, so cpm is also called cost per thousand advertising. This kind of advertisement needs to pay as long as the advertisement content is displayed. The effect is not very good, but it is beneficial to the advertisement site owner. (The most common cpm advertisement is pop-up advertisement)
(4) CPC: (Cost Per click) pay-per-click advertising, that is, charges are made according to the number of times the advertisement placed by the advertiser is clicked. This method is the best way to promote the website. Users can see the advertisement of our website but do not click on it, so we don’t have to pay for it, but there will also be delays. In short, there are advantages and disadvantages. This kind of advertisement can be said to be a typical representative of Baidu bidding advertisement.
5. Features
Performance advertising is characterized by fast response, effect-oriented, and does not pay attention to the media it is placed in. It goes wherever the effect is good, generally information flow, advertising alliance, DSP, etc. And combined with the QR code and contact information, the delivery time usually ranges from a few days to half a month. Basically, the effect can be seen on the same day of the launch, and through some mature platforms, the click volume, conversion rate, and How much money is consumed can be monitored in real time. If the effect is not good, the delivery can be stopped immediately to reduce losses.
