Performance-based advertisement is the new kind of advertisement trend that’s emerging in. It implies that the purchaser would pay for the advertisement only when the advertisement is successful or has reached the required number of viewers. With the tech world and the internet, it has become easy to get the number of people to whom the advertisement has reached. It is paid for performance form of advertisement.
There are various pricing models. Firstly there is a cost per mile. It is related to the number of people who have viewed the advertisement. But it also does not ensure that the advertisement has been clicked upon or not. Then there is the cost per click. It pays for the advertisement only if it has been clicked upon by the viewer. But it has grown out to be very expensive. Another one is the “per lead”. It relates to the impression created and not just merely the click or view. It has the highest rate of return than any other online advertisement. Cost per action is the last one. It pays for the advertisement only if an action has been taken regarding the advertisement like a credit card transaction through the link provided in an advertisement or likewise.
It is a very efficient form of advertisement. It has advanced analytics since it is an online concept. It also helps to work out advertisements based on geography, demographics, age, behavior, etc. It can also help in managing the content. It can be easily figured out if the advertisement is successful or not. Also the behavior can be directly monitored. The duration of the advertisement can be controlled depending upon the success of the advertisement. It is a cost-efficient way since the purchaser can monitor the reach and pay according to that only.
There can be potential loss in performance ad. Fake clicks or automatically generated clicks can mislead the whole process. Establishing the benchmarks for reach and pay takes s a lot of time. Thus time is a limit to it. If a client is in a long term contract then it would become difficult for him to withdraw in case he is not getting the required degree of success.
Brand based and performance-based advertisements are completely different in their approach. Brand based advertisement helps in building a connection with the user over some time. It is used by many reputed brands. Its main aim is to create a brand image and create a favorable impression in the eyes of the viewer. But it has a disadvantage that the amount of reach and reaction cannot be determined. However in the performance-based advertisements it can be easily determined and tracked and a conclusion regarding the success of the advertisement can be made.
It’s evident how beneficial these online advertisements are. One can easily locate the best performance marketing agencies and take benefits from its established name and also pay only for what one has received about the advertisements. It has greater chances of success because it can be easily tracked down with regards to views and success.