Marketing is all about increasing revenue and sales while creating a brand.
And performance marketing is all about the first part of this statement. It looks for positive ROI ensuring the customer acquisition cost is always lower than the life time value of the users (CAC < LTV).
It’s really that simple.
And you can switch around the channels, the formats, the placements, but your mission needs to be consistent.
Start by spreading the word about your product/service out, but you need to have in mind the right audiences, because everybody is not the goal, someone is the goal, your target personas are the goal.
Hence, the first step would be to understand who these people ate and where are hanging out so you can talk to them.
The second step would be to create a message that is able to cutting through the noise and grab the attention of the users, trigger their interest, feed their desire and pull them into action. Only at that point the funnel will be completed and you can think about the after sales, rewarding your best customers who are keen to become a flywheel for new user acquisition.
Third step: pick a media and measure the results. If you can’t measure both LTV and CPA, don’t start.
You can’t do performance marketing just going with your gut.
Well, sometimes you have to trust your intuitions, especially when it comes to try new stuff out. But ultimately you need to be able to get granular data about your campaigns and carve out your ROI.
Then move your investment budget around acquisition channels based on quality (read: profitability).