Mobile performance marketing is now a gold mine for marketers and there’s never been a better time to get involved. We talk about why in this article.
What is Mobile Performance Marketing?
Mobile performance marketing is all about using the mobile platform to acquire straightforward results that matter to your business. Sometimes bidding on cost per click ads isn’t worthwhile when you know perfectly well that those incoming clicks aren’t going to translate well into actual actionable events, sales or app installs.
With performance marketing on mobile, marketers are focusing on only bidding for actions that matter. Need more app installs? You can directly bid on installs. Need users to make an action, such as sign up for a newsletter? You can directly bid on these actions.
Performance marketing is all about paying for the actions you need and knowing exactly how much of those actions you’ll receive before you’ve even deposited your budget into an ad platform.
If it’s not clear already, the cost per install or cost per action will be far higher than the traditional CPM or CPC costs, but it pays out when it comes to ROI. Mobile performance marketing can truly cover your bases and ensure that each penny you spent goes towards bringing in more revenue.
With more traditional ad units, such as cost per mille, you not only have to spend on bringing in hits to your mobile webpage, but you’ll also need to funnel those users into your revenue streams, and we know that’s not always easy (see here mid funnel marketing activities).
Reasons to get started with Mobile Performance Marketing Now
If our explanation above hasn’t already given you an idea of the plentiful reasons to get started with mobile performance marketing now, we’ve delved further below to explain the benefits in detail.
Know What You’re Spending
Firstly, with non-performance mobile marketing, you’re limited when it comes to your scope of understanding the true value of your marketing budget. Whilst you may come across a great CPM deal that even offers excellent targeting, you may still find yourself struggling to convert those hits into actionable events or sales.
No two marketing runs are ever going to be the same with CPC or CPM – a $300 monthly spend on CPC or CPM may offer vastly different results each month. It’s just too difficult to get a solid, non-variable conversion rate.
With performance marketing, on the other hand, you’re buying into those actions directly – there’s no extra action that users need to take to make it beneficial for your business. CPM and CPC can still be useful for extra recognition and supporting organic search growth, both on Google and in the app stores, but it’s not going to be as useful as performance marketing is going to be for acquiring the actionable results you need.
Know What Your Budget is Going On
When a non-performance marketing campaign could offer variance between the number of hits, clicks or social interactions your advertised content gets per $100 of ad spend, it can be hard to know exactly what results in your budget will offer you.
Once again this is mainly due to the variance in prices for cost per click and especially cost per mille, and it makes it hard to run a steady marketing campaign that doesn’t have months that dip into less favourable results. If, on the other hand, you have a limited budget and know that you’d like to get new users to install your mobile app, a performance marketing campaign can help you to understand how far your budget is going.
Directly Correlate Your Marketing Efforts with your Revenue Growth
With stabler, more direct results from your marketing spend you can easily view how much growth or new income your advertising is providing you. If, for example, you manage to source a cost per install of $4.50, and manage to get a higher return in revenue from your new users over time (Customer Lifetime Value), you’ll be able to continue your marketing campaign with a higher budget next month.
If things aren’t going so well and your ROI is too low, you can track it straight back to the cost per install – you can then shop around and find a better deal or an ad platform that can offer higher value users. It’s far easier to see well your revenue growth is doing against your marketing spend when your ad spend offers direct results like CPI or CPA
Better Analytics, Easier to Monitor
With the growth of improved targeting and big data, it’s becoming easier to monitor and track analytics no matter what mobile marketing unit you choose to use. However, we’ve found that performance marketing can be one of the easiest methods to use when it comes down to monitoring and tracking your results.
Tracking the performance of thousands of clicks or views can be difficult when these same things from other sources get into the mix. It’s obviously doable, but when you consider that you could instead track the performance of every individual app install from a marketing campaign directly from the ad network, and won’t need to worry about tracking your revenue funnel or conversion rates outside of that ecosystem, you’ll see why mobile performance marketing can be a far better choice.
Hopefully this has helped you to understand the benefits that are provided from mobile performance marketing.