What is performance marketing?
Suppose you have an ad budget of 1,000 AZN (manat) and feel you are spending that money "for nothing". Performance marketing is a type of marketing that ties advertising investment to fully measurable results. The main aim here is to measure the conversions that come from advertising (sales, sign-ups, calls and so on) accurately and in real time.
Why is performance marketing preferred?
- To manage the budget effectively
- To see campaign ROI (the ratio of revenue to costs)
- To understand what actually works and focus on it
For example, if the cost per click (CPC) in Facebook ads is 0.20 AZN but the cost per purchase is low, it would make sense to increase your ad budget.
The core elements of performance marketing
1. Defining the goal precisely
What do you expect from the ad campaign? Sales, sign-ups, calls, product awareness: that is what your goal should be. Without a goal, it is impossible to measure performance.
2. Choosing the right channel
In Azerbaijan, Facebook, Instagram, Google Ads, YouTube and local platforms (for example, advertising on Kontakt.az) are widely used. You need to advertise on whichever platform your target audience is on.
3. Measurement and analytics tools
With tools such as Google Analytics and Facebook Ads Manager you can track every step of your ad campaign. For example, to set up conversion tracking in your ad account you can follow 5 steps:
- Create a Pixel
- Install the Pixel code on your website
- Define the conversion event
- Select the conversion objective when creating the campaign
- Track the results in analytics
4. Optimising the campaign
Based on the results obtained:
- Direct the budget to the effective channels and campaigns
- Change the ad copy and visuals
- Narrow or widen the target audience
A real example of performance marketing in Azerbaijan
The clothing brand "AzerTex" spent 1,500 AZN on a product campaign on Facebook. The campaign produced 300 sales at a cost per sale (CAC) of 5 AZN. In the previous campaign CAC was 8 AZN, which means a saving of 37.5% was achieved through performance marketing.
You can also achieve this by working with professional agencies such as Advertol. Our team monitors and optimises your campaigns continuously. You can find out more about our digital marketing services.
Key strategies for performance marketing
1. Retargeting (repeat targeting)
Showing special ads to users who viewed a product on your website but did not buy it.
2. Creating a Lookalike Audience
Finding audiences similar to your existing customers in the platforms' advertising systems.
3. A/B tests
Checking which version of the ad copy and visuals works better.
4. Budget planning that fits the campaign goal
Setting a daily budget according to the cost per conversion you want to achieve.
Frequently asked questions
What is the difference between performance marketing and traditional advertising?
In traditional advertising the results tend to be approximate and general. In performance marketing, every click and every sale is measured and analysed.
What should the minimum budget for performance marketing be?
In Azerbaijan you can start from 10–20 AZN a day on the Facebook and Google platforms, but to see an effect a monthly budget of 200–300 AZN is closer to optimal.
Which tools are used for performance marketing?
The main tools are Facebook/Instagram Ads Manager, Google Ads, Google Analytics and customer management systems (CRM).
Is performance marketing right for my business?
It suits most online and physical sales goals. It is especially effective for sales-driven products and services.
A final word
To answer the question of what performance marketing is: we can describe it as a marketing approach that ties your ad budget to results and is backed by numbers. If you want to know where and how your advertising investment is working, we recommend working with a professional team.
Get in touch with us and, with Advertol's experienced team, you can start improving your campaign's performance.