The transparency of performance marketing

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Being online is indispensable today, but there are ways to increase your company’s visibility. Brand awareness and performance marketing are two of the most effective tools. Ferenc Dudás, chief operating officer at Klikkmánia Magyarország, offers some insight.

BBJ: Most companies already have an online presence, usually a website, webshop or a social media account. But when they hear about performance marketing, many get suspicious. What would you tell them?

Ferenc Dudás: Compared to classic marketing, performance marketing offers company managers looking to increase sales and revenues a much more powerful tool, one better able to quantify the efficiency of a campaign, in a more transparent way. The main areas here are paid advertisements and organic turnover growth. We have analytics and measuring tools for both areas, which offer very reliable data about how much revenue is generated with every 100 forints spent on a campaign. This can be very attractive, as it offers not only marketing managers, but also sales managers, a much more transparent solution for tracking their online sales. Moreover, these data can be tracked with marketing automation or other solutions inside the company. Dashboards and reports are available for the management, which allow tracking on a daily or weekly basis, so everything becomes much more transparent.

BBJ: When a potential client contacts you, what growth can you guarantee through performance marketing?

FD: This can vary a lot, depending on several factors. We have clients from many economic sectors – commerce, real estate, finance – and each of them use different key performance indicators. It is important to understand that success can never be guaranteed. Mutual cooperation always has two sides: one is the amount of experience an agency has, and the other is how much the client is open to give the necessary inputs, to be open as much as possible for cooperation. What we can say is that, in most cases, we can generate visible growth within about three months. Let me tell you the factors required for this. Usually clients contact us for two reasons: they want to increase brand awareness or sales increase; they require a different type of cooperation, depending on the goals. In the case of sales increase, the most visible result is the conversion. The basket value is usually important for an e-commerce company. In those areas we are able to achieve significant growth with a well-designed, well-structured and consistently conducted campaign. Obviously an important part of the cooperation is also the planning. If we have all these and we can implement them successfully, then usually we can guarantee a dynamic growth already in the first three months of the cooperation. I usually see this as a test period, when we can have a better understanding of the company’s client base potential.

BBJ: You mentioned the importance of relevant inputs from the client side. What exactly is it that you expect from them? Is sensitive data involved?

FD: Yes. Within all collaborations of this kind we need sensitive information, like: how much is a finalized purchase worth for the client, what is their marketing budget available for the current year, what other areas are they considering for marketing spending. These are necessary for us because, when we design our campaigns, our colleagues need to know exactly if the conversion delivered to the client was worthwhile for him or her. If this is not transparently communicated by them, we do not know how to adjust our campaign. The budget side is also important because, if we see the whole marketing spending of the company, we can have an integrated approach to the campaign, and plan efficiently using other channels too. This information customers are not always willing to share with us in the beginning.

BBJ: And finally the unavoidable question: how much should potential clients expect to pay for a performance marketing campaign?

FD: I would rather indicate the monthly fee below which we do not recommend budgeting for such a campaign. Usually at least HUF 100,000 is the monthly fee that is worth investing in this. But there are many factors that can change that. For example, if the client is considering multiple channels, like a Facebook or Google ad, than the budget musts be carefully shaped, because it may be that HUF 100,000 is not sufficient for multi-channel use. The majority of our clients spend usually between HUF 100,000 and HUF 500,000, directed specifically to media. Of course there are some who spend millions a month. So these are the figures that we are looking at, if we take the Hungarian market. I would add to this that even very small companies can use this opportunity, spending HUF 50,000-60,000. But they have to decide if they want brand awareness or performance marketing. Of course they can opt for both, but the costs will be higher.

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