The performance marketing space is nothing without a solid distribution plan. Performance-based distribution can be defined as a content delivery method that the advertiser pays for only when a publisher drives the consumer to make a purchase. This type of distribution is available in several forms across multiple devices.
Such distribution opportunities can drive greater optimizations and traffic to your brand, enable more efficient spend, and provide a better comprehensive understanding of your consumer base.
Explore Different Pricing Models
Traditional performance distribution channels you’re likely familiar with include deal and loyalty sites; however, modern distribution channels go far beyond these traditionally lower-funnel placements.
A few examples of these unique performance-based distribution methods include cart abandonment, retargeting, and search. These non-traditional methods are typically run on a Cost Per Sale (CPS) model.
For some brands, running on a CPS is most cost-effective, while, for others, it makes more sense financially to run on a CPM with a bit more risk involved. Choosing the right pricing model for your business shouldn’t be a guessing game. Testing into these unique performance-based opportunities is the safest and most cost-effective way to go!
Utilize a Multi-Device Strategy
Another important piece of the performance distribution puzzle is a multi-device strategy. Utilizing a multi-device strategy can increase conversion rates by creating additional touchpoints for consumers, which in turn helps brands attain higher visibility. However, these touchpoints are nothing without a consistent user experience across devices.
Building and maintaining a consistent UX across all devices ensures a fluid journey for the consumer across desktop, in-app, and mobile web. This fluidity decreases the likelihood of losing leads across devices.
Multi-device partnerships are crucial to ensure your brand is reaching as many consumers as possible. Performance partnerships should be paid out based on acquisition quality so that partners who are driving high-quality rates are incentivized to continue doing so.
Analyzing user acquisition by device, channel, and distribution source allows brands to truly understand what’s working for them on a deeper level. Such understanding can be utilized to help drive further price optimizations, user flow optimizations, user engagement, and a higher ROI.
Other Benefits of Performance Partnerships
Perhaps the most lucrative aspect of performance partnerships is the cost-effective touchpoints they create. As a general rule of thumb, consumers interact with at least seven touch points before they’re confident enough in the product to convert.
There are two ways to set up a performance acquisition program, the most popular being last-click attribution. That means that whichever publisher drives the last click before the sale is who will get paid.
For example, if three or four touchpoints come from performance partners, and the advertiser only has to pay for the one touchpoint that converts the user, the overall cost per sale decreases. Such touchpoints truly work to the advantage of the advertiser because, regardless of the number of touchpoints a consumer interacts with on a performance basis, the brand is not paying until the last click prior to conversion.
The second way a performance acquisition program can be set up is through multi-click attribution. This means you pay all publishers a small portion of the sale based on how they influenced the sale. Unlike non-performance channels, this method allows brands to better control their overall costs with multiple touchpoints.
Much like the example above, those same three to four touch points would all get paid, but instead of the last click getting the entire amount of commission, the commission would be split between all of the partners involved. This allows brands to take advantage of significant cost savings since the advertiser still only pays once the consumer converts. Although the advertiser is paying out multiple publishers, the amount paid remains the same and is simply divvied up to each partner based on the part they played in the buyer’s journey.
Adding performance-based distribution to your marketing mix can drive higher conversion rates, provide more opportunity for greater optimizations, and enable more efficient spend.