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Performance Marketing Platform: Basic Concepts and Principles of Operation

Performance Marketing Platform: Basic Concepts and Principles of Operation

Performance marketing is one of the most technologically advanced approaches to promoting products and services. It is based on the measurement of real results and helps to clearly control advertising activities. In this article, we will review the basic concepts and principles of performance marketing platforms as a powerful tool for creating effective campaigns.

Basic Concepts

Performance marketing is a strategy aimed at achieving specific metric results or performance indicators. The key metrics are:

  • Conversion Rate is the ratio between the number of users who performed a targeted action (purchase, newsletter subscription, or form filling) and the total number of visitors
  • ROI (Return on Investment) is the rate of efficiency of investment in a marketing campaign, which illustrates the ratio between the profit received and advertising costs
  • CPA (Cost Per Acquisition) is the cost of acquiring a customer or his target action, which is measured as the ratio between the cost of marketing activities and the number of conversions received
  • CPL (Cost Per Lead) is the value of each potential customer (lead), which helps to evaluate the effectiveness of audience engagement and the profitability of marketing campaigns

Performance Marketing Platform (PMP) is a tool for implementing performance marketing strategies. The platform measures each action by clearly defined indicators and allows you to effectively interact with various advertising channels.

How PMP works

Segmentation and targeting 

This principle involves dividing the audience into segments based on various characteristics or parameters. This allows you to create advertising campaigns that target specific groups of people according to their needs, interests, and behavior. For example, individual offers for active customers, for customers browsing certain product categories, and for new users who have not made a purchase yet.

Advertising channels

To achieve your campaign goals, you can choose the most relevant channels: social media, email campaigns, search engine or mobile advertising, affiliate marketing, etc. By choosing the right platform, you will achieve higher conversion rates and maximize the potential of your advertising campaign.

Advertising campaigns optimization

Once you launch an ad campaign on a performance marketing platform, you can analyze its effectiveness, change target settings, and test different creatives and offers. This will help you find the most effective ways to engage your audience and increase conversions. It's important to keep monitoring your campaign to make sure that the changes you make are actually leading to better results and meeting your business goals.

Monitoring and analysis of results

You can use PMP analytics tools to track key metrics. This data helps you determine how users interact with your product or service after they've converted from your advertising campaigns. Continuous monitoring allows you to improve the user experience and increase conversions. 

A performance marketing platform is a powerful tool for achieving marketing goals and optimizing advertising campaigns. Its principles of operation include audience segmentation and targeting, selection of the most relevant advertising channels, monitoring and analysis of results. These features help businesses achieve better results and maximize the return on investment in marketing campaigns.

If you would like to launch your project on the basis of PMP leave your contacts in the form. Our manager will contact you and offer the best solution for your business.

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Serhii Kutyr, CEO


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