Affiliate Marketing

New Age growth, performance marketing; all you need to know

Marketing in the past used to be a very tactical business. Apart from sales, it used to comprise things like creative advertising, media planning with little focus on facts and figures, finding the right demographics and so on. The key focus was on finding ways to get noticed and sell as much as possible. Today these tactics arent enough.

With the era of digital changing the landscape of the way companies conduct business, branding has become a crucial aspect of todays marketing efforts. Companies are now focused on creating a brand that can captivate people and build customer loyalty. Today, a brands story is as valuable as the type of products and services it is selling, and digital marketing is playing a catalytic role in making it happen.

With online platforms gaining more popularity, technology is becoming more sophisticated. Hence, brands are now adopting new-age strategies and innovative approaches and are prepared to take risks, invest in their branding, and listen more closely than ever before when dealing with customers online through effective story-telling. Just look at the McDonalds, Tatas and unicorns like Zomato and Swiggys in the market and the way they are reaching out to their audiences.

Digital Marketing Trends

Due to the worldwide pandemic, digital marketing has gained a lot of prominences. 2022 is going to be no different. Digital is a cost-effective way of optimizing the marketing budget whilst gaining brand awareness and sales conversions.

According to the Gartner State of Marketing Budget study for 2021, marketing expenditures have fallen to their lowest recorded level at 6.4 percent of corporate revenue in 2021 from 11 percent in 2020.

According to the data, CMOs have adjusted their spending commitments across their channels and programmes, with digital channels dominating these objectives and accounting for 72.2 percent of the entire marketing budget. Digital is taking over the marketing world and it can be seen with the latest trends that are hitting the market.

5 trends that will dominate digital marketing in 2022

Personalised Conversations: People today expect companies to chat with them, instantly. Consumers today want answers and conversation marketing can connect with them thorough chats, personalised videos and other forms of content.

The Other Reality: Upcoming tech like the metaverse, Augmented Reality and Virtual Reality are picking up speed. Its a good opportunity for brands to explore possibilities in this domain.

Shoppable Content: Shoppable content provides the utmost level of convenience to a consumer, also its a great way to tap into impulse shopping by providing a single-click solution. Shoppable content like live streams, instagram posts and more guarantee conversions.

Inclusivity: Inclusivity in terms of gender, age, race and more are becoming important than ever. For example, more and more fashion brands are releasing gender-neutral clothes and promoting it as the same on social platforms. In 2022, its become even more important.

Video Marketing: With the rise of social media platforms, short form video content is increasingly dominating the content space. Brands are finding creative ways to communicate with their audiences and 2022 will see a rise in this trend.

Growth Marketing

Growth marketing is an approach that is focused on experimenting and implementing unique strategies to understand what works for an organisation in order to succeed. The core focus of growth marketing lies in attracting, engaging and retaining customers to build brand loyalty through marketing funnels. By building a focused strategy that is true to your organisations goals, brand story and offerings, a company will be able to stabalize both long and short term growth.

Growth marketing is a holistic approach that affects all aspects of a marketing funnel, from top to the bottom:

  • A: Awareness (How many people do you reach?)

  • A: Acquisition ( How many people visit your website?)

  • A: Activation (How many people take the first important step?)

  • R: Retention (How many people come back to buy again?

  • R: Revenue (How many people start paying?)

  • R: Referral (How many people referred your company/website to their friends or family?)

The idea is to scale up a business as soon as possible by concentrating on factors that influence growth. Rather than adopting best marketing practices, growth marketing takes a data-driven approach to testing.

Growth hackers focus on identifying potential target audiences that are already looking at an organisation’s products and services followed by implementing campaigns that would target them at the right time, place and in the right content format.

Performance Marketing

Performance marketing is a form of marketing that is backed by facts, figures and assured conversions. Organisations pay marketing companies a hefty amount to bring them results in the form of Return On Investment (ROI) through clicks, leads and impressions. The most basic form of performance marketing is seen in social media marketing, search engine marketing, affiliate marketing and more. This strategy is a combination of advertising and innovation that enables merchants and affiliates to build their businesses in ever-changing ways

Unlike other forms of traditional advertising, where fees are paid in advance and are not contingent on the ads’ success, performance marketing delivers successful transactions through quantified data. Performance marketing has successfully flipped the typical advertising value proposition while also allowing for real-time ROI measurement.

Conclusion

For a lot of marketers, growth marketing beelines a strong focus on performance marketing and the latest digital trends in order to communicate effortlessly to their audience. If your organisation is in the early stages of development, you may want to focus on first creating your brand anatomy before diving into growth marketing. Remember, just creating a brand logo and social media handles isnt enough to build your company. You must first define your brand story AND THEN use growth marketing tools to further your business by communicating it effectively.

Today, consumers dont connect with a company, they connect with the companys beliefs and story. And growth marketing can get you there with the right assistance.

(The writer is Co-Founder and Senior Vice President, Windsor Digital-creative marketing and advertising company)

Published on: Monday, February 14, 2022, 05:57 PM IST

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