As digital marketing becomes more mainstream, companies are beginning to understand better what they really want from a digital agency, and this invariably involves results. SmartLinks started in digital marketing in 2015, from the outset with a digital marketing agency approach focused on performance marketing, moving away from simply doing digital marketing actions with little or no monitoring of their impact on business. But what is Performance Marketing and how does it differ from normal Digital Marketing actions? Performance marketing is a digital strategy that focuses on actions that generate concrete results, be they sales, leads or visits to a website or store. Digital marketing is a broad term that encompasses all marketing strategies that use digital channels, such as websites and apps, social networks or email marketing. The main difference between performance marketing and digital marketing is that performance marketing is more focused on the results to be achieved and digital marketing is more focused on the digital channels to be used. Performance marketing uses data to measure the success of the actions taken, while digital marketing can focus on other factors that are more difficult to analyze, such as the reach and visibility of the message, brand awareness or brand lift. Another important difference is that, unlike digital marketing, performance marketing agencies can offer two formats of remuneration for their services: A fully performance model, with a fee linked to performance; A hybrid model, with a fee linked to actions and a complementary fee linked to performance. These fully performance-based or hybrid remuneration formats allow companies to control their marketing costs and maximize their return on investment (ROI). The importance of well-defined objectives As performance marketing is a digital marketing strategy whose primary objective is to deliver measurable results, it is very important that the results/objectives are clear and understood by both parties. At SmartLinks, a performance marketing strategy is always associated with a set of SMART objectives, i.e. objectives that are identified and defined in a specific, measurable, achievable/realistic, relevant and time-bound way. An example of SMART objectives for a performance marketing strategy could be: “Achieve +5000 visitors to our website during the 1st half of 2024 vs the same period last year, reducing the cost of acquisition by 10% and impacting sales of product A by +20% vs Budget”.   This example integrates several objectives to be achieved that are linked to each other: visits – sales – cost Performance marketing objectives can be diverse: increasing sales, generating qualified leads, acquiring customers or visitors to a particular page. To track progress, important events are measured (using Google Analytics or a similar tool) and this data is used to measure progress and validate the success of the actions taken. It’s also common to use a data dashboard that integrates all the different actions being carried out as part of the performance strategy. In many cases we use Google’s Looker Studio, but we can also use other dashboards such as Supermetrics or Funnel.io. Examples of Google Looker Studio dashboards In performance marketing, the mix of strategies used and the effort/investment allocated to each one is often what makes the strategy successful (or causes it to fail). Let’s take a look at some examples of performance marketing strategies: Performance marketing strategies: Paid media or online advertising: Paid ads on social networks such as Facebook, Instagram, TikTok, LinkedIn, Pinterest, Twitter, Spotify or Reddit. Ads on search engines such as Google and Bing. Ads on other digital channels such as the MSN network, Sapo, among others. Search Engine Optimization (SEO): This strategy is fundamental in performance marketing. Through SEO optimizations (on-page, off-page and technical) it is possible to make pages of a website appear in the top positions in organic search results, thus increasing visibility and traffic to those web pages. Content marketing: Involving creating and distributing content in the form of blog articles, infographics, videos, podcasts and so on, which is relevant to the target audience, with the aim of attracting visitors and generating qualified leads. Marketing automation: The use of automation tools to automate marketing tasks, such as email marketing, SMS marketing, online notifications, online chat or data analysis. It includes the use of marketing and sales CRMs, which make it easier to manage and communicate with the database of customers and potential customers. E-mail marketing: Email marketing is one of the most successful digital marketing actions. Sending personalized emails to a list of subscribers or potential customers is an effective way of keeping the public informed about new products, promotions and content, encouraging loyalty and conversion. Affiliate Marketing: Consists of establishing partnerships with people or entities to promote products or services. In return, affiliates receive a commission for each sale or lead generated from their marketing efforts.   Data Analysis and A/B Testing: Analyzing campaign data and user behavior makes it possible to constantly optimize marketing strategies. A/B tests, where different versions of a page or ad are compared, are essential to understand what works best with the target audience. Remarketing/Retargeting: This technique involves showing ads to people who have already visited the website or interacted with the brand in some way. It’s an effective way of re-engaging users who have shown interest but haven’t carried out the intended conversion action. What to choose in a more pressured economy? Although the choice depends very much on the brand, market and product or service to be marketed, it is clear that at times when markets are under more economic pressure (as is the case at the time this article is being written) a performance marketing approach is more appealing to companies. The possibility of managing marketing investment in perfect harmony with the results achieved, while at the same time being able to take corrective action in a short space of time, makes performance marketing the ideal approach for those who prefer profitability. Glossary of technical terms used:   Performance marketing: marketing strategy that focuses on measurable results. Digital marketing: marketing strategy that uses digital channels. Specific objectives: concrete goals that companies want to achieve with their marketing campaigns. Data: information collected on user behavior, which can be used to measure the success of marketing campaigns. Progress: the evolution of marketing campaigns over time. Success: achievement of the specific objectives of marketing campaigns. Digital channels: means of communication that use digital technology, such as websites, apps, social networks, email marketing, etc. Pay-for-performance models: payment models in which advertisers only pay when users perform a desired action. Return on investment (ROI): measurement of how much a company is earning from its marketing investment. Example ROI 1:5 means that for every 1 euro invested, the company is earning 5 euros. Social networks: online platforms that allow users to socialize and share content. Search engines: sites such as Google and Bing, which allow users to search for information on the internet. Relevant content: content that is interesting and useful to the target audience. Leads: potential customers who have shown an interest in a company or product. Customer acquisition: the process of attracting new customers. Marketing automation: the use of tools to automate marketing tasks. CRM: a tool that allows you to centralize information about customers and potential customers and provide various marketing and sales solutions.