In the ever-evolving world of e-commerce, staying updated with marketing tactics and trends is one of the important aspects that every brand must take care of. Understanding the e-commerce platforms and placing effective bids for ads is a skill every brand owner should excel at to up their name in the world of e-commerce.

In this blog, let’s understand performance marketing—an important approach to boosting sales and visibility. 

To start with, what is performance marketing? Performance Marketing is a form of digital advertising that is driven by results. It is advertising in which a brand pays to the online marketplaces for a specific place of ads or result-oriented actions such as clicks, views, or sales as per their selected keywords or products. 

Performance Marketing can help the brand to stand out and get their products into the limelight amongst the massive variety and number of product choices available. 

Now that you know what performance marketing is, let’s move to the elaborated benefits of performance marketing.

Result Oriented

Performance marketing is one of the very effective strategies for e-commerce where the brand pays for the targeted result. One can know if the ads are effective & efficient or not to decide their further budget and plan of action. 

Product Discovery

Through performance marketing, the brand can promote their specific products for selected keywords and bid for specific placement of their ads. This helps the brand to promote its products and enhance its visibility to a great extent. Such ads also work as an informer about the products/ brands to the customers with an active purchasing mindset. 

Anytime Optimization 

Performance marketing is always open to optimization, the brand can always change the budgeting and bidding as per the results. This helps the brand to analyse the results and manage its budgets accordingly.

Performance Marketing on Amazon

To learn better about how performance marketing works, let’s dig into Amazon’s performance marketing.

Search Keyword Ads

Search keyword ads are all about bidding. Brands should carry a thorough analysis of the keywords and bid on the specific keywords favoring their brands for better visibility. The higher the bid is higher the visibility. One should know which keywords work for them and neglect the negative keywords for better performance of the ad. The bid should be data and analysis-based for the most efficient results.

Sponsor Product Ads

Sponsored product ads to promote individual products to potential customers. These ads appear on Amazon's Product Listing Page highlighting the products on the top, middle, and bottom according to the bid by the brand. These ads are charged as cost per click, pay only when the customer clicks the ad. 

Sponsor Brand Ads

Another ad that is charged at cost per click is sponsor brand ads. These ads take the customer to a new landing page or brand store where he/she can explore the brand’s complete range of products. The placement of this ad is on the top of the product listing page for higher reach and visibility. 

Sponsor Display Ads

Sponsor Display Ads are based on product targeting and appear on the self or competition product listing page. If the customer initially shows interest in a similar product as yours but does not buy it directly, you can redirect them to your product through sponsor display ads. 

Sponsor Video Ads

These ads allow the brand to be more creative and innovative in presenting its products/ brands through videos. These ads grab the attention of the potential customers resulting in a sales boost. The placement of these ads is on the product listing page where it stands out amongst other brands because of the eye-catching creativity. 

As the competition is touching the sky, the brands must practice performance marketing for better results and to stay relevant in the online market. Though a little tricky, if understood and worked on properly, performance marketing can prove to be very beneficial in the long run. 

Woah!!! So much to grasp?

We understand that for a brand to make its mark in the increasing competition is challenging and tiresome. Staying updated with the latest trends and tactics is not easy, but don’t worry we have your back. Professionals at Love In Store (LIS) are equipped with the latest knowledge and experience which could help you reach your desired goals and numbers. Account managers at LIS work closely with the marketplaces to understand their latest trends and deliver the best results possible as per the client’s requirements. 

Whether you are a newbie or an experienced brand in the e-commerce industry, reach out to us @ info@loveinstore.com or call 1800-257-7750.