Performance Marketing For D2C Brands- Emergence Of Newer Technologies
In today's day and age, direct-to-consumer (D2C) brands are here to stay. With the emergence of the pandemic and the subsequent lockdowns, more people are shopping online than ever before, which means that potential consumers have more opportunities than ever to learn about your services and become lifelong clients.
However, with a typical marketing paradigm, these chances are easily missed, and firms that maximise their efforts with performance marketing will be the ones to capture this influx of new D2C shoppers. So, if you're a D2C brand in 2022, and you're not focusing on performance marketing as a fundamental component of your business plan, you could be missing out on something major.
An Understanding of Performance Marketing
In practice, performance marketing refers to any online marketing or advertising activity in which marketers pay marketing platforms when a specified, measurable action is taken on their platforms. Unlike traditional marketing, when advertisers pay advertising providers in advance in the hopes of getting a result, advertisers only pay when a specified condition is met, such as purchasing a product. Just as D2C sales have sped in the ever-increasing march toward a global digital marketplace, so has the necessity for D2C businesses to use all of the tools at their disposal — such as performance marketing — or risk being left behind.
An Effective Method of Marketing
Performance marketing allows you to maximise your marketing efforts by informing and guiding your marketing toward the targeted statistical result using discrete, observable data. What you want to achieve depends on your company, your vertical, your industry, the time of year, the stage of growth you're in, the type of ads you're running, the platform you're advertising on, and so on. The list of things to concentrate on is almost endless. The important thing to remember is that you're basing your performance marketing campaigns on accomplishing a specific marketing goal.
As the D2C business in India grows, marketers are turning to social media to engage with their customers, generate much-needed interaction, and build a strong brand community. According to research, 61 per cent of D2C companies use social media platforms to communicate with the majority of their customers.
Factors for D2C to Adopt Performance Marketing
Performance Marketing is a cost-effective, low risk and flexible channel of marketing for D2C brands. Brands may observe the effects of their efforts while the campaign is running with performance marketing. They can see how their advertisement is being received, who is seeing it, and how they are interacting with it. This yields measurable, quantifiable outcomes that can be used to assess how well your advertising campaign is functioning – and how it may be improved.
Performance marketing is also a more cost-effective investment. Performance marketing lowers costs, targets relevant potential customers, generates more qualified leads, gives brands more real-time control over their advertising, and produces significant, measurable results that affect their bottom line.
This is how performance marketing enables brands to maximise their marketing expenditure in ways that a traditional approach simply cannot. With a performance marketing strategy, brands may advertise in a more flexible, cost-effective, and risk-free manner.
Summing Up
The lockdown was a godsend to the D2C sector, causing internet demand to soar to new heights. Only the availability of suitable technologies to facilitate this structural transformation made it possible. So, regardless of how far we progress, technology will continue to play an inextricable and seamless part in the D2C sector's growth.
In the direct-to-consumer market, your marketing must be effective, or your competitors will rapidly and ruthlessly seize the possibilities you've missed. When you compare the tangible, specific benefits of performance marketing to traditional advertising, there's really only one option for D2C firms looking to flourish in 2022, and it is performance marketing.
*The author is Amitek Sinha, COO, ET Medialabs
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