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    Performance marketing is a type of online marketing that uses precise measurement methods to evaluate the effectiveness of advertising efforts based on specific actions taken by users. Unlike traditional forms of advertising, where charges are based on exposure or clicks, in performance marketing advertisers pay for specific results, such as final sales, acquiring a potential customer or signing up for a newsletter. It is a model based on measuring return on investment (ROI), which makes it particularly attractive for companies that want to focus on the effectiveness of their marketing efforts.

    In this article, we will focus on the role of performance marketing agencies in the process of planning, executing and analyzing performance marketing campaigns across various digital channels. We will outline what strategies and tools are used by these agencies to achieve optimal results for their clients, and the benefits that can come from outsourcing performance marketing activities to specialized companies.

    The following is an overview of the role of performance marketing agencies.

    Channels of Performance Marketing 

    Performance marketing agencies specialize in extensively serving paid online marketing channels and tracking, analyzing and reporting on the results of their efforts. The most well-known performance marketing channels include:

    – native advertising (Native Advertising),

    – search engine marketing (Search Engine Marketing),

    social media marketing (Social Media Marketing),

    display advertising (English: Display Advertising),

    affiliate marketing (English: Affiliate Marketing).

    A brief history of performance marketing agencies 

    In the 2000s, thanks to advances in technology, the use of search engines increased, social media platforms developed, and mobile devices became increasingly popular. With these advances came the need for online marketing solutions. By the end of the decade, marketers gained access to a variety of solutions for social media, search engines and analyzing results. These solutions were channel specific and created a dilemma as to which channel and software to choose. In the 2010s, this problem only worsened as new technology companies continued to emerge in the online market. Along with the need for online marketing support, several things happened. 

    First, marketing agencies were able to grow as companies looked for ways to optimize online marketing spending. As performance marketing became a larger and larger part of online marketing efforts, marketers began to specialize in this one area.

    Firstly, marketing agencies were able to grow as well.

    In addition, due to fragmented workflows, companies saw an increased demand for integrated solutions that provide holistic insights into online marketing activities. Instead of managing separate software for each channel, agencies allow you to look at all of your channels, see which ones are performing best, and help you achieve better results from your efforts in other channels. 

    Benefits of working with a performance marketing agency 

    Some of the benefits of working with a performance marketing agency come from the very nature of performance marketing: 

    1. Data-driven results

    Performance marketing agencies are primarily data-driven, so they are able to help you clearly track spending and results and communicate the value of your campaigns through data.

    2. Digital nativeness

    Many traditional marketing agencies have adapted to the needs of clients by adding online marketing and performance marketing services. Performance marketing agencies, on the other hand, have emerged to perform only marketing. Their expertise lies in understanding the online mechanisms used to promote your brand.

    3. Advanced technology

    Performance marketing agencies use technology that can better analyze the effectiveness of your performance marketing and give you ideas for next steps. The agency should be able to combine data in a way that makes it easier to understand the customer journey and identify the most influential drivers of growth across all channels where marketing efforts are made.

    4. Expert advice

    Collaborating with a performance marketing agency gives you access to experts in the field. For some companies, this may make more sense than hiring a full-time specialist and training them properly. In performance marketing agencies, on the other hand, you can find experienced professionals for any type of performance marketing channel.

    5. Continuous improvement and innovation

    Performance marketing agencies are often committed to developing the skills of their employees and the technologies they use. They strive to find new solutions and innovative strategies that can provide a competitive advantage for their clients. As a result, working with such an agency allows your company to stay on top of the latest trends and best practices in the field of online marketing.

    Performance marketing agencies vs. internet marketing agencies

    Many Internet marketing agencies offer performance marketing services, but there are agencies that focus exclusively on performance marketing channels. The key difference between is precisely that performance marketing agencies are more focused and specialized in the aforementioned channels of the field, while internet marketing agencies are likely to offer a wider range of services. Often their efforts are more focused on brand building, content creation and other creative services, offering performance marketing support as an additional service. In contrast, performance marketing agencies help you present your brand to the right audience in the most effective way possible.

    What distinguishes a good performance marketing agency? 

    Whether you are considering using an online marketing agency that offers performance marketing services or a performance marketing agency, there are several things to consider, including:

    1. Multi-channel expertise

    When choosing an agency, make sure it has a lot of knowledge and experience with each channel and can prepare the right strategic plan that includes those channels that will best benefit your business.

    2. Holistic view

    In addition to understanding each type of performance marketing channel, it’s a good idea to make sure the agency you choose has a good perspective on how all of your channels are performing. Such a holistic view allows both the agency and your company to better understand the customer journey and how the marketing channels affect each other.

    3. Smart insights and recommendations

    Your performance marketing strategy should be flexible and open to modification. A good agency will be able to look at the data collected and tell you what your next steps should be. It should constantly monitor your customer journey, ROI and other key metrics to decide how to change your strategy and get better results.

    Choosing a performance marketing agency

    Before you decide to work with an agency, take some important steps: 

    • Detailedly “google” the agency and check the reviews of others about it to make sure you are choosing a reliable partner.
    • Pay attention to the responsiveness and communication style of the agency’s team members. Ideally, they should adapt to you, trying to both inform your team and collaborate with them on your strategy.
    • Consider the ratio of the agency’s clients to its team members. If something raises your concerns, don’t be afraid to ask, for example, whether, with the current occupancy, the specialists are sure to have time to do quality work for your company.
    • Be assured that the agency has experience in operations in your industry – it’s useful to have a sense that the team really understands your company and target audience.
    • Consider whether you feel the “vibe” and “flow” of the agency – it is undoubtedly important that the atmosphere of cooperation between your company and the agency is harmonious and conducive to consensual and effective communication.

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    Performance Marketing Agency – Summary

    Performance marketing agencies are key players in the field of online marketing, specializing in the effective use of various digital channels to achieve specific business goals. There are many benefits to working with a performance marketing agency, such as access to online marketing experts, the use of advanced technology to analyze data, and the ability to receive personalized recommendations on marketing strategy.

    Performance marketing agencies are also a key player in the field of online marketing.

    However, it is important to remember the differences between performance marketing agencies and online marketing agencies. The former mainly focus on the effective use of performance marketing channels, while online agencies offer a wider range of services, including creative branding activities. The final choice of the right agency should be carefully considered to ensure harmonious cooperation and the achievement of the desired business goals.

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    Tomasz Starzyński
    Tomasz Starzyński

    CEO and managing partner at Up&More. He is responsible for the development of the agency and coordinates the work of the SEM/SEO and paid social departments. He oversees the introduction of new products and advertising tools in the company and the automation of processes.