How To Create Effective Performance Marketing Campaigns

In today's digital age, app advertisers seek new ways to reach their target audience and drive results. Performance Marketing has emerged as a highly effective app marketing strategy that allows app marketers to pay only for their campaign results. Focusing on results and providing real-time feedback encourages advertisers to create high-quality Performance Marketing Campaigns, which are more likely to drive conversions and increase the user base.

Performance Marketing is a type of digital marketing that has become increasingly popular in the last decade. Although this strategy started over two decades ago with the internet boom, it only started catching fire in the 2010s for its efficiency.

What is Performance Marketing

Performance Marketing is a type of digital marketing that is result oriented and performed with the help of demand side platforms. The app advertiser pays only for the actions that users make or marketing goals that are met. These actions can be installs, leads, registrations, or sales. This strategy produces immediate results. Compared to the other traditional forms of marketing, Performance Marketing is renowned for delivering the fastest results.

Top Performance Marketing Channels

To create Performance Marketing Campaigns, advertisers need to use charge right channels to advertise products and services. By using a combination of these Performance Marketing channels, businesses can effectively promote their products and services to reach their target audience. They are:

1. Search Engine Marketing (SEM)

   

   Performance Marketing Channel: Search Engine Marketing

   One of the most popular Performance Marketing channels is Search Engine Marketing (SEM). SEM is used to promote apps by increasing their visibility in search engine results pages through paid advertising. It is an effective way to drive traffic to an app and increase the number of app installs. Pay Per Click ads is a type of SEM where advertisers pay each time a user clicks on their ad. Google is the most used Search Engine by marketers, and according to Statcounter, Google holds 92% of the total worldwide search engine market share.

2. Video Ads

   Video ads are also a part of SEM and are effective in increasing conversions. These ads are displayed to users before, during, or after a video and can drive traffic to an app. Video ads can be found on various platforms, including websites, social media platforms, streaming services, and mobile applications. CPV (Cost Per View) is the pricing model mainly used for video ads.

3. Display Advertising

   Display ads are graphical ads that you see on websites, mobile apps, and other digital platforms. They come in different formats and can be either static or dynamic. They promote various products, services, or brands to online users. Advertisers use various pricing models such as Cost Per Impression (CPM), Cost Per Click (CPC), or Cost Per Action (CPA) to pay for and measure the effectiveness of display ads. They can help increase brand visibility, generate leads, drive website traffic, and boost conversions.

4. Social Media Advertising

   Social Media Advertising is another popular channel. Social media platforms such as Facebook, Instagram, and Twitter allow app marketers to reach a large audience, engage with customers, and promote their apps and services. The different types of Performance Marketing Campaigns that are run on social media platforms are Awareness Campaigns, Engagement Campaigns, Conversion Campaigns, and Retargeting Campaigns. CPM or cost per mile is the most common pricing model used in this form of advertising.

5. Affiliate Marketing

   In Affiliate Marketing, app advertisers partner with other businesses or individuals to promote their apps. In return, affiliates earn a commission for every sale they generate. This channel can be a great way to expand your app reach and increase sales. Cost per sale is the pricing model used to determine the efficiency of affiliate marketing. We will discuss more about the Cost Per Sale model below.

6. Email Marketing

   

   Performance Marketing Channel: Email Marketing

   Email Marketing is a channel that sends promotional and informative emails to customers and users. It is a cost-effective way to promote apps and keep users engaged. It makes targeting highly personalized and is a great way to connect with users and drive sales. Email marketing encompasses various types of emails that are sent at different stages of the customer journey. Welcome emails set the tone for the relationship, while nurture emails engage leads and build trust.

   Promotional emails drive sales by promoting products and offers. Abandoned cart emails encourage users to complete their purchases. Re-engagement emails target inactive subscribers to reignite their interest. Thank you emails show gratitude and promote customer loyalty. Post-purchase emails provide order updates, request reviews, and suggest additional purchases. By employing these email types strategically, businesses can effectively nurture leads, drive conversions, and foster long-term customer relationships.

Exploring Pricing Models in Performance Marketing Campaigns

Advertisers measure Performance Marketing Campaigns with different pricing models. These differ according to the goals of the campaigns. These models include-

Pricing Models in Performance Marketing Campaigns

• Cost Per Install (CPI)

  Cost Per Install is an effective way to increase app downloads, allowing advertisers to pay only when users install their apps. This pricing model helps advertisers pay to promote their apps. Furthermore, CPI campaigns can be optimized to target specific audiences, leading to higher-quality app installs and better user retention rates.

• Cost Per Registration (CPR)

  Cost Per Registration is a metric used to measure the average cost incurred to acquire a new registration or sign-up for an app. It helps app marketers evaluate the engagement of their Performance Marketing Campaigns. It is an effective model because it tracks the number of users who not only viewed and installed ads but also registered as long-term app users.

• Cost Per Lead (CPL)

  Cost Per Lead is the average cost to acquire a qualified lead through a marketing campaign. A lead is typically defined as a user who has expressed interest in the app by completing a specific action, such as filling out a form for further interest in the product or providing contact information. They are most effective in measuring the results of lead generation campaigns, niche marketing, and B2B marketing.

• Cost Per Action (CPA)

  Cst Per Action is a performance-based metric measuring the cost associated with each desired action, such as app installations, in-app purchases, subscriptions, or any predefined action that signifies user engagement or value. CPA is often used in conjunction with other metrics such as lifetime value (LTV) to ensure that the cost of acquiring users is justified by their long-term value to the app or business. By comparing CPA with LTV (Life Time Value) marketers can make informed decisions regarding user acquisition budgets, determine the profitability of different user segments, and refine their marketing strategies accordingly.

• APK Install

  When marketing an Android app, developers or app marketers provide the APK containing the app's code and resources on their website. APK Install is critical since it enables users to directly access and experience the app without going through the app store or the play store. It provides an additional distribution channel for app developers, allowing them to promote their apps to a wider audience.

• APK Registers

  APK Registers is a pricing model where app advertisers for each registration are made through an APK. Although similar to APK Installs, APK Registers move a notch up and measure registrations and signups on the APK downloaded directly from the app’s website.

• Cost Per Mile (CPM)

  Cost Per Mile is a pricing model where app marketers pay publishers or affiliates for every thousand impressions on their ad. The term "impression" refers to a single instance of an ad displayed to a user, typically on a website, mobile app, or other digital platforms. It serves as a standard metric for ad pricing and enables advertisers to determine the efficiency of the branding campaigns.

• Pay Per Click (PPC)

  In the Pay Per Click model, advertisers pay a fee each time their ad is clicked by a user. By using PPC, app marketers can control their ad spending more effectively, as they only pay for actual clicks. Advertisers typically utilize ad platforms or networks that support mobile app advertising to implement PPC in-app marketing. These platforms, such as Google Ads or social media advertising platforms like Facebook Ads, provide tools for setting up and managing PPC campaigns, tracking conversions, and analyzing performance marketing campaigns.

• Cost Per Sale (CPS)

  Cost Per Sale marketing refers to the average cost incurred to acquire a new user who completes a purchase or transaction within the mobile application. It is an effective way of paying and measuring the revenue the Performance Marketing Campaigns generate. It can also help in app optimization and user retention.

Creating The Perfect Performance Marketing Campaigns

Making the best Performance Marketing campaigns involves the following:

Steps for Creating Performance Marketing Campaigns

1. Set clear goals

   First, it is necessary to define the Performance Marketing Campaign goals. What is it that you want to achieve through this campaign? Ask yourself if it is to increase downloads, generate users, or create brand awareness. Performance marketing strategies will help you focus your efforts and resources on the right areas. One of the most common goals is to acquire users who become loyal advocates of the app. Keep in mind that these goals can also be short-term. For example, if you are creating a campaign for a seasonal sale on your app, consider increasing cost per lead and cost per action metrics.

2. Identify target audience

   Knowing your target audience will help you create a message that resonates with them. You need to understand their needs, pain points, and desires. This will help you create a message that speaks directly to them. App marketers use the STP (segmentation, targeting, and positioning) model to identify their target audience. Analyze your user base with the help of market research and competitors, and create user personas that can help you accurately to segment, target, and position your app.

3. Choose right channel

   As we discussed earlier, there are many channels to choose from when it comes to Performance Marketing. Choose the channels that are most likely to reach your target audience and achieve your goals. For example, if your target audience is on social media, consider advertising on Facebook or Instagram. It is always better to advertise on multiple channels to not miss a potential user.

4. Create compelling value proposition

   Your value proposition must be compelling enough to get people to take the desired action. This could be a discount, a free trial, or a limited-time offer. Make sure that your request is aligned with your campaign goals. Invest in high-quality media and copywriting that capture your user’s attention. Also, make sure to use the right keywords. A thorough keyword research will help you analyze what your user is searching for and reach them sooner.

5. Optimize app page

   Once people click on your ad, they will be taken to an app page optimized for conversion. The landing page should encourage people to take the desired action. This way, you can make the most conversions or desired outcomes from the target audience. For example, if your goal is to increase app downloads, make sure your app landing page is aligned with the goal.

6. Monitor & measure performance

   It is necessary to monitor and measure the Performance Marketing Campaigns. This will help you identify what's working and what's not to make adjustments accordingly. You can use tools like Adjust or Google Ads to track key metrics based on your goals like — ad spend, interactions, average costs, etc. The important mobile app KPIs you have to measure are - cost per install, conversion rate, cost per registration, cost per lead, cost per acquisition, APK installs, and APK registrations.

Benefits of Performance Marketing Campaigns

• Cost-effectiveness: One of the significant advantages of Performance Marketing campaigns is their cost-effectiveness. Since advertisers only pay for the desired action, such as sales or installs, they can optimize their budget and achieve a higher return on investment.

• Results-driven: Performance Marketing Campaigns are results-driven, which means that app advertisers can see exactly what works and what doesn't. This allows them to make data-driven decisions and optimize their campaigns for better performance.

• Greater transparency: With Performance Marketing campaigns, mobile advertisers have greater transparency in their campaigns. They can see where their ads are displayed, how many clicks they receive, and how much they pay per click or conversion.

• Better targeting: Performance Marketing campaigns also offer better-targeting capabilities than traditional marketing campaigns. With features like demographic targeting, geographic targeting, behavior targeting, and others, mobile marketers can reach the right person, at the right time, with the right message.

• Easy to measure and optimize: Performance Marketing metrics are easy to measure and optimize. Mobile marketers can track their campaigns in real-time, and make adjustments based on the data they collect. This allows them to optimize Performance Marketing Campaigns for better performance and achieve better results over time.

In conclusion, Performance Marketing is a cost-effective and results-driven strategy for mobile app advertising by reaching their target users and achieving their marketing goals. By understanding the different pricing models and channels, Performance Marketing Campaigns can create effective performance marketing strategies and gain substantial success.