By Obinna Anyanwu
In 1905 John Wannamaker, the founder of Walmart said, “I
know that half of my advertising dollars are wasted, I just don’t know which
half”. Since then it has been his and every other merchant’s dream to make
advertising accountable. Nearly 100 years later, Internet technology, with its
ability to track advertising to the sale, has created a marketing model that
makes this possible.
Performance Advertising is this solution for digital
advertising and with it, advertisers no longer have to pay for intangibles like
branding. They don’t even have to pay for impressions or click-through, so
there’s no guesswork about whether or not a marketing program is working or not.
According to Wikipedia,
Performance Advertising is becoming more common with the spread of electronic
media, notably the internet, where it is possible to measure user actions
resulting from advertisement.
Pricing model used in performance advertising include: CPM –
Cost Per Mile (Cost Per 1000 Impressions), CPC – Cost Per Click, CPL – Cost Per
Lead, CPA – Cost Per Actquisition, CPD – Cost Per Download, CPS – Cost Per
Sales, CPI – Cost Per Installation, CPV- Cost Per Video. Below is an
illustration showing the different levels of pricing models for the delivery of
|Pricing models for the delivery of performance advertising|
Senior Product Manager, Terragon Group, Eniola Moronfolu, said
it eliminates the guesswork out of mobile advertising and optimizes spending by
tracking, monitoring and reporting success on adverts.
“Performance Advertising helps clients maximize their return
on investment (ROI) as it provides ways for them to measure user engagement,
Marketing channel performance, Sales and real time optimization.” She said.
For performance based ads to be successful, a few things
have to be considered:
- Content and the Market - The content should be
appealing to prospective consumers. For example, in Nigeria, it is easier in to
run a performance campaign in dating than e-commerce.
- How to
Track Conversions – There should be an understanding between client and
affiliate on when a conversion should be recorded, and how both parties get
less errors during communication between both parties conversion trackers.
- Number of Clicks That Leads to Conversions –
There should be a proper understand of how many times a user needs to click to
reach conversion point.
- Targeting – What devices, OS, Carriers are your
consumers using and what country can they be found?
- Payout – The easier the targeting, the lesser
the payout per conversion and the more the targeting, the more the payout.
Organizations with small budgets like Small and Medium scale
Enterprise (SME) are not left out as they benefit from it. In a case where they
purchase a cost per action ad, they are sure that every advertising dollar will
lead to a positive return on investment.
Twinpine now works with various Enterprise Platforms for
mobile application tracking to provide performance advertising solutions for
advertisers and publishers in Africa. Just as our innovative Advertising
formats enables great experiences for mobile users, gives brands prime
positioning and publishers more revenue, so do these platforms enable clients
choose which methods and device identifiers are most appropriate for their
users as they can be monitored by advertisers from anywhere and at any time.
This stresses Twinpine’s constant move to innovate and provide clients with the
most efficient and cost effective methods of mobile advertising.
For more information on this, Send a mail to support@twinpinenetwork.
Obinna Anyanwu is the
Data and Performance Manager, Twinpine Network.