Growth Marketing Vs Performance Marketing: Which Is Better?

Growth marketing vs Performance marketing? “What’s the difference?” You’ve probably…

Growth marketing vs Performance marketing? “What’s the difference?” You’ve probably heard “growth marketing” and “performance marketing” before. We will break it down, don’t worry!

All marketing is done with high performance in mind so a business can grow. However, growth marketing and performance marketing are very different.

In this article, we’ll talk about each strategy, how it works, its goals, and what makes it different from the others. By the end of the article, you’ll have a better idea of whether or not your company should focus on growth marketing or performance marketing.

Growth marketing is a group of activities that focus on the user and are experimental
Growth Marketing vs Performance Marketing

What Is Growth Marketing?

A decade ago, the term “growth marketing” started to be used, and since then, it has become much more than a passing fad.

Growth marketing is a group of activities that focus on the user, are experimental and constantly changing. It builds on traditional marketing by adding things like A/B testing, SEO, data-driven campaigns, engaging blog content, etc. Growth marketing is about making the most of all the ways a business can grow throughout the entire funnel.

It gives brands a plan to test often, learn quickly, and change in a good way. Growth marketing takes the traditional parts of marketing, like print, TV, radio, and billboards, and changes the conversation from “How do we get customers?” to “How do we keep customers for longer?”

With this new way of talking, you can make decisions based on data that will help you reach and retain your target audience. What does this mean? Growth that lasts for a long time.

Strategies and Channels for Growing Your Business

What strategies and channels do teams that work on growth marketing use? It depends on the goal and how the company plans to grow.

Growth marketing strategies and channels are based on content and how to use it to influence, bring value and growth to a business. Some growth marketing channels and strategies include:

  • Blog posts with calls to action that lead to lead magnets that are relevant to the context, SEO Keyword research, link building, and optimization
  • Email marketing that is automated and email marketing campaigns to be sent to specific lists or contacts based on how people have behaved in the past.
  • Reusing content on different social media platforms, search engines, and in different formats and making lead magnets that can be used on the website’s cold, warm, and hot pages.

Metrics and Goals for Growth Marketing

Growth rate is the “North Star” of growth marketing. The metrics and goals for growth marketing involves many indices. Here are some of the goals for growth marketing:

  • Marketing-qualified leads (MQLs), sales leads of all kinds, certified Leads (SQLs)
  • Opens and clicks are examples of email metrics.
  • SEO factors like the website’s Domain Authority and how it ranks for specific keywords.
  • Retention statistics, such as the churn rate, the number of upsells, and cross-sells.

How Do You Define Performance Marketing?

Performance marketing is a term for online advertising and marketing programs where advertisers only pay when a specific action takes place. This action could be a user-driven lead, the sale of a product, a click on an article, or any other things.

The goal is to get new customers, which is different from growth marketing. Impressions, clicks, and leads are the most important parts of performance marketing. Revenue, retention, and referrals are things another person or marketing team thinks about.

Performance marketing is also a “set it and forget it” method. They will work as long as you have enough money to keep running ads. But the campaign stops when the money runs out, and your asset is no longer seen. Because of this, performance marketing works best for one-time campaigns most of the time.

Common Ways and Channels for Performance Marketing

Paid marketing channels are used in performance marketing. Some of the most common strategies used in performance marketing are:

1. Local Advertising

These ads don’t look like the kind of ads you usually see. They fit with the editorial style and tone of the publication or website and give the type of information that the audience expects.

2. Sponsored Content

Sponsored content is when a company pays money to a company or influencer that fits their target customer group and the topic. When done right, sponsored content doesn’t feel like an ad but more like a natural part of the site.

3. Affiliate Marketing

Affiliate marketing is when you promote other people’s products and get a cut of the sales. Brands often work with “influencers” who have an “affiliate” link. When a sale is made through this link, the influencer gets a small profit cut.

4. Advertising on Social Media

It sounds like an ad on social media, which is exactly what it is. It could be a banner ad, a video ad, or sponsored or “native” advertising. When you use a search engine like Google, the first few results usually have the word “ad” next to them. You can pay to advertise on search engines and be one of the first things people see when looking for a certain product.

Performance Marketing Goals and Measurements

Is your goal to produce sales? Do you want a possible customer to sign up for an email blast? Before deciding on performance marketing, it’s important to figure out your most important metrics.

In most performance marketing campaigns, goals and measurement are based on some of these terms below:

1. Return on Ad Spend (ROAS)

ROAS is the amount of money your business makes for every dollar it spends on advertising.

2. Return on Investment (ROI)

ROI is the growth in sales minus the cost of marketing, divided by the cost of marketing. This shows how much money you made from the money you spent on advertising.

3. Cost Per Thousand Impressions (CPM)

CPM is the amount an advertiser pays a publisher for every 1,000 people who see their ad.

4. Cost Per Click (CPC)

CPC is how much an advertiser pays each time one of their ads is clicked on. It is the total amount spent on ads divided by the number of clicks on those ads.

5. Cost Per Sale/Conversion (CPS/CPV)

CPV is the amount an advertiser pays for each sale that an ad brings in. It is the amount of money spent on ads divided by the amount made from sales because of the ads. Cost per lead, or CPL, is how much an advertiser pays when a customer signs up because of an ad.

6. Cost Per Acquisition (CPA)

CPA is how much an advertiser has to pay when a certain action is taken. This action could be a sale, a click, or a completion.

Growth Marketing Vs Performance Marketing: Which Performs Better?

Your company should decide on performance marketing at a certain time and place. If you want to sell a certain number of products this month, or if you want to get more people to sign up for your email list, performance marketing teams could help your business.

But these things happen naturally when growth marketing campaigns are implemented. Instead of focusing on a specific number of sales, growth marketing aims for the overall growth of your business.

Growth marketing may be the best way to go if you are a tech or SaaS company in its early stages and want to grow your audience but don’t care about meeting specific sales goals.

Both of these plans work for successful businesses, and neither is better than the other. Our goal is to help you learn more about each strategy so that you can make a better decision for your business.

To Wrap Up

In summary, when you are on a growth marketing strategy you are trying to acquire new customers that you can support and retain through drip marketing, conversion marketing, upsells, and cross-sells.

On a performance marketing strategy, you are specifically looking for the sale.

Frequently asked questions

Is growth marketing hard?

It’s tough. Growth marketers themselves struggle to define what they do. Growth marketer Derin Oyekan told us it’s a billion-dollar question.

What are the benefits of performance marketing?

  • Affiliate marketing is a great way to bring in new ideas and creativity.
  • Advertising is extended by performance marketing.
  • It’s traceable and measurable. Performance marketing is based on successful transactions by advertisers and marketers.
  • You can diversify your revenue stream by doing so.

Which marketing strategy is most effective in the modern era?

The best marketing strategy a business can use effectively engages and connects with its customers – and the answer could be right there: digital marketing.

Does performance marketing include SEO?

Performance Marketing is now taking on a new dimension, encompassing any marketing strategy that will improve your business. The main areas of focus include email marketing, search marketing (SEO and PPC), conversion rate optimisation, content marketing, and many more.

Why do you love growth marketing?

Marketing growth goes beyond the bottom line. When done correctly, it adds value all the way through the marketing funnel by attracting users, engaging them, retaining them, and ultimately turning them into champions for your brand. Marketing usually looks at the top of a funnel, while growth tends to focus on the bottom.

What is the difference between marketing and growth marketing?

While digital marketing offers a set of marketing tactics, it is not a methodology to apply strategy to your marketing decisions. Similarly, growth marketing begins with strategy and empowers you to implement the marketing tactics that support your company’s specific growth goals.

What is the most effective form of marketing?

One of the most popular marketing strategies is social media marketing. Additionally, it is one of the most effective ways to build awareness and increase sales. It is easy to understand why social media platforms are used by more than 2.8 billion people. About 37% of the world’s population is who knows!

What is the difference between performance marketing and marketing?

We rely on internet marketing to market our products or services. The concept of performance marketing is one where you pay only when a certain outcome occurs.

How much do performance marketers make?

A senior-level role in performance marketing in the United States is $66,090 to $187,200, with a median salary of $128,750. The middle 60% of Leadership Makes $128,750, while the top 80% makes $187,200.

Is growth and performance marketing the same?

Growth marketing involves continuously recruiting new customers to your business, while performance marketing involves increasing user impressions, clicks, and leads. Marketing tactics are driven by revenue and customer retention so that they barely have to think about revenue or customer retention.

What is the most powerful marketing tool?

You can and that tool is the internet, the most powerful marketing tool on earth, which has a virtually unlimited reach. Small businesses believe old-school marketing tactic is sufficient.

How do you become a performance marketer?

  • The first step is to set your campaign goal.
  • Let’s take a step 2: choose your digital channel(s).
  • Step 3: Launch the campaign.
  • Monitor and optimize your campaign step 4.
  • Identify potential pitfalls in step 5.

What is the opposite of performance marketing?

Brand marketing and performance marketing go together. In the world of mobile advertising, it has historically been seen as performance marketing compared to non-profit. The two camps seem to be opposites in brand marketing.

What is an example of performance marketing?

The performance marketing strategy is overlooked in digital marketing. With performance marketing, advertisers only pay when specific actions take place. When a viewer clicks through to their page or purchases something, for example.

Is growth marketing a good career?

A career in growth marketing is a high-growth field. Content marketing and social media marketing can be difficult to link directly with tangible business results. These could be the first jobs de-prioritized when budgets are tight.

Growth Marketing Vs Performance Marketing: Which Is Better?

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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