Performance media … the answer to all questions for all marketers?
Of course not. But the ability to pay for results or manage online channels to equivalent results-based metrics continues to capture the attention and budget dollars of an ever growing number of them. Consider the following growth projections and excerpts from J.P. Morgan’s Jan. 5 Nothing But Net: 2009 Internet Investment Guide:
- U.S. search to grow by 10% in fiscal year 2009
- Global search to increase by 12% in fiscal ’09
- “… to the extent advertising takes hold on social networking sites, it will more frequently be in the form of performance-driven ads than display.”
While performance media may not work for all marketers, CMOs should at least understand the performance media options available to them. In fact, answering some fundamental questions about performance media can help to clarify the options and opportunities available.
Defining performance media
Simply stated, performance media delivers more qualified consumers and a more measurable return on investment for marketers, who pay for results, not impressions. Measurability, the essential attribute of any performance media channel, enables marketers to understand results generated by any specific media investment and manage them accordingly.
Long standing offline performance media channels include direct mail and direct response TV, but online performance media channels have already changed the modern marketing mix with the widespread adoption of search. This will continue in 2009 and beyond through emerging media.
Search engine marketing, already the most cost effective channel for many marketers, represents the most widely used performance marketing channel, but it’s only one of several. Other emerging performance media channels include social media, dynamic engine marketing (CPA display ads purchased through networks and exchanges), and mobile marketing.
Fundamental questions
Marketers need to accomplish more with less, and executives and directors from around the globe have employed the accountability of performance media to do so. Consider these questions regarding performance media:
- What role does performance media play in my current marketing mix?
- Does my budget account for performance media and associated testing?
- Can we convert click or impression based buys to performance media, and should we?
- How well do we leverage performance media compared to top competitors?
- Which emerging channels provide competitive advantage today? Tomorrow?
- How do these opportunities and costs compare to other media models?
Often times, the knowledge required to answer these questions can be found within the internal or external groups that manage existing search marketing programs. Professionals with expertise in bidded CPC media buying, dynamic budgeting, micro-targeting and continual optimization are particularly well suited to help marketers capitalize on emerging performance media channels. Specialist agencies, industry thought leaders, trade shows and competitive intelligence providers can also help marketers better understand the promise of performance media within the context of their own marketing goals and initiatives.
Michael Kahn ([email protected]) is vice president of account management and marketing at Performics.
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