Explore the integration of performance marketing into all marketing strategies, the contrasts between traditional advertising and performance marketing, and the evolving landscape of performance marketing in this thought-provoking podcast discussion.
Performance marketing combines brand and direct response strategies, debunking the misconception of marketing as polar opposites.
A comprehensive model in performance marketing connects spending to outcomes, aiding in decision-making and strategy adjustments over time.
Deep dives
Understanding Performance Marketing
Performance marketing is not just a tactic but a broader strategy encompassing brand and direct response marketing. The misconception of marketing existing as polar opposites is debunked, emphasizing that all marketing should be performance-oriented. Performance marketing involves a model connecting spending to outcomes, allowing for various tactics under the 'performance marketing' umbrella, rather than being mutually exclusive.
Defining Performance Marketing Framework
Performance marketing relies on a framework with three essential components. It starts with assumptions informed by baseline beliefs, updates with new data, and requires a model quantifying value from marketing campaigns. The model connects spending to outcomes, aiding in decision-making and strategy adjustments over time, while measurement serves as the key component in linking data sets and refining the model.
Challenges and Incentives in Brand Marketing
Brand marketing presents an incentives problem as brand marketers may prioritize relationships and gifts over auditing performance, impacting decision-making. In contrast, direct response marketing focuses on immediate performance for platforms like Facebook and Google. The distinction between performance marketing and brand marketing lies in the comprehensive model connecting spend to returns versus qualitative measurements influenced by incentives.
Future Trends in Performance Marketing
The future of performance marketing entails a convergence of measurement methodologies between direct response and brand marketing due to evolving privacy restrictions. This shift allows for adaptable measurement approaches applicable to various tactics, enhancing the auditability and effectiveness of marketing campaigns. Adapting to these changes unlocks opportunities and enables a more integrated approach across different marketing strategies.
MDM Canon is a new podcast series from Mobile Dev Memo in which co-hosts Eric Seufert and Stewart Johnson select an article from the Mobile Dev Memo archive and discuss it at length.
This episode focuses on an article titledWhat is performance marketing?, first published in October 2018. The episode attempts to clarify what I see as a broad misunderstanding of the general marketing taxonomy with a functional definition of performance marketing.
Thanks to the sponsors of this week’s episode of the Mobile Dev Memo podcast: