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Earlier this month, I participated in a professional development and networking event for alumni of the Integrated Marketing Communications (IMC) graduate program at Northwestern University's Medill School of Journalism. I spoke with some of my colleagues about how they define performance marketing and what they envision for the next generation of performance marketers, and they shared valuable insights about its growth and accountability. Here’s what a few of them had to say:
Tom Collinger, associate professor and sector head of direct, e-commerce and search marketing and associate dean of Medill. Collinger is also president of The TC Group, a marketing strategy consulting firm, and serves as a member on the editorial advisory board for the Journal of Consumer Marketing.
CG: What does performance marketing mean to you?
TC: Performance marketing is, after all, redundant, isn’t it? The goal of all marketing and communications is to grow connections and engagement that results in sales performance. I believe the term has grown in popularity recently as a result of the growth in measureable outcomes to marketing initiatives, but, really, can you ever imagine a marketing communications initiative funded without a stated expectation of results? I can’t either. So, for me, performance marketing means an expectation of results as a consequence of the strategies used to promote a brand.
CG: What advice do you have for the next generation of performance marketers?
TC: I'd advise the next generation of performance marketers not to fall victim to the belief that an immediate and measureable result to a prompted marketing communications initiative is always the best basis of proving success. Rather, consider each and every initiative in the context of how a business, brand or service is made more or less relevant to a customer. Each initiative is a brick that either builds or erodes the wall that becomes the barriers to switch.
Ron Jacobs, president of Jacobs & Clevenger, an independent multichannel direct digital marketing agency. Jacobs started a professional program in direct marketing at DePaul University in 1990, and in 2006, he began an endowment for the program. He also devoted 17 years as a senior lecturer in the Medill IMC program. Jacobs co-authored the "Eighth Edition of Successful Direct Marketing Methods," the best-selling book on the tools and techniques of direct marketing.
CG: What does performance marketing mean to you?
RJ: I find myself constantly reminding my clients, staff and students that performance marketing is direct response marketing, and many of the traditional tools and techniques of direct marketing apply. The ultimate objective should be conversions or sales. The messages and calls to action need to reflect the keywords that got prospects there in the first place. Moreover, while you may not be able to measure everything, you can easily find three to five key performance indicators that make sense for your business.
CG: What advice do you have for the next generation of performance marketers?
RJ: Today, virtually all marketing communications are accountable; it’s the new normal. Performance marketing is a leader in this transition. Marketers, media and agencies are shared stakeholders in this change; we all need to find ways to adjust our business models to accommodate it. Whether seeking direct marketing or broader results, the accountability of the web continues to drive the evolution of performance-based approaches toward game-changing methods to better assess and optimize performance.
Final thoughts
Initially an arms race to get the right technologies in place, performance marketing has become more consumer centric as the practice begins to mature. Successful performance marketers will understand consumers and how they use technology to find information and ultimately make decisions.
The measurement process for performance marketing almost always includes generating response; collecting information; and analyzing large data sets, complex systems and partnerships — all focused on the consumer as a participant in the exchange. This intelligent data management links the business intelligence engine with the execution engine to reduce marketing waste, optimize marketing spend and scale quality implementation for improved return on investment.
As these industry experts stated, consumers’ perspectives will only continue to gain significance in performance marketing. Marketers must find ways to be relevant, and performance marketing offers several reliable methods to connect with high-value audience segments, quantify success and keep campaigns accountable.
How do you envision the future of performance marketing? Feel free to share your thoughts in the comments thread below or email me at craig.greenfield@performics.com.
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