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3 Things CEO’s Need to Know About Performance Marketing


Performance marketing has been around for a while, but we have found many companies still do not understand how to run a successful performance marketing program. The first step is understanding what performance marketing actually is. We like to explain it this way:

Performance marketing is when an advertiser only pays for a specific action, such as a click, form submission, or sale. In the past, companies paid a fee up front for advertising space regardless of performance. This could mean thousands of dollars spent without a single conversion. Performance marketing doesn’t require a huge budget because you only pay for what you get. It’s a great way for smaller businesses to get in on the advertising game without spending thousands and for larger businesses to get more results from their expansive marketing budgets.

With this shift in marketing, CEO’s need to stay up-to-date with how this affects their marketing goals, strategies, and teams.

Here are 3 things we suggest CEO’s need to know about performance marketing.

  1. The Right Marketing People

Traditionally, marketing people were known as right-brained creatives. Now that the world of marketing has evolved and more data is available, analytical skills have become increasingly important in marketing teams. Sure, you need someone who can create pretty ads, but you also need someone to hone in on the details, test and experiment with small changes, and scrub the results.

CEO’s should consider this when hiring new marketing staff. While creativity is needed, it can be a waste if there is no one to examine the results and make suggestions for continued growth. We recommend focusing on analytical, detail-oriented self-directed learners who have a creative edge.

  1. Know your KPIs

Key performance indicators, or KPIs, are specific, numeric metrics that are tracked in order to measure success. There are countless KPIs marketers can track with the advanced analytics available today. However, issues arise when they are not narrowed down and targeted. Having a clearly defined goal and ways to measure if you hit the mark or not ensures continued improvement for the next project.

We recommend that CEO’s become accustom to the KPIs their marketing teams are using. They should know how to ask the right questions about an ad and its results. While conversions are important, they need to understand who found the ad compelling and their buyer personas. When a CEO understands who is attracted to their service or product, it helps drive and solidify the vision of the company. 

  1. Analyze, Analyze, and Analyze Again

The first time you see that fancy report showing an increase in clicks, likes, or form submissions is exciting. But the right marketing person will know that the job is not done yet! A healthy marketing team will celebrate the successes and then get started looking for more. CEO’s need to understand that the marketing team’s job is not simply to churn out ads. They need time, training, and processes to sufficiently analyze the results to make better decisions on the next project.

Like we mentioned above, the need for a strong analytical team is larger now than ever. If CEO’s allow their marketing teams the time to examine each and every detail of a performance marketing project, they will see larger successes each time.

When we talk to companies about their performance marketing programs, we involve the CEO. Having everyone on the same page is important when it comes to narrowing down the KPIs of a performance marketing program. If there are differing opinions, expectations, or ideas, these need to be hammered out so that the program can be successful. CEO’s should play a role in the marketing of their company and knowing the industry is a great place to start.

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