Recession-Proof Your Customer Acquisition Strategy with Outcome-Based Marketing
The looming recession has many digital marketers looking for alternative ways to maximize their ad spend without cutting marketing budgets completely. Contrary to the first impulse that many marketers (or CFO’s) may have, decreasing ad budgets amidst a worldwide recession will only hurt your brand in the long run. For example, the average brand could lose almost 15% of its business if a similarly sized competitor doubles its marketing investments.
With the power of outcome-based marketing, marketers can reduce spend across under-performing channels, while simultaneously creating new revenue streams – all while only paying for real, qualified conversions.
What is Outcome-Based Marketing?
Outcome-based marketing is the ability for brands to only pay once they’ve acquired a qualified customer, sale, install, any desired outcome – you name it. With outcome-based marketing, it’s the affiliates, publishers, bloggers, influencers, paid media specialists, and other partnerships who take responsibility for driving customers and sales for your business – this means that the financial risk is entirely alleviated for advertisers. If these partners don’t deliver results, they don’t earn anything—providing an incentive for action and a shield for the marketer against marketing budget losses.
By only spending advertising dollars for real conversions, outcome-based marketing is genuinely a win-win model for promoting products, services, and apps that can weather tough economic storms.
Only Pay for Qualified Customers: No Wasted Ad Spend
Marketers who decide to shift ad budget toward a “pay-for-performance” model can effectively drive guaranteed ROI, only spending for real customers. Sounds too good to be true, right? In times of economic uncertainty, outcome-based marketing allows marketers to budget for the exact amount of ad spend they have available – no more, no less. Oftentimes, outcome-based marketing will encompass the entirety, or at least the majority, of advertisers’s budgets during tough financial times.
Let’s say you’re an e-commerce brand specializing in sunglasses and you’re looking to limit advertising to only direct ROI-driving marketing channels. You want to refrain from wasting ad spend on impressions and clicks, while simultaneously testing across new digital channels. By setting a specific budget and optimizing through an outcome-based marketing model, you’re able to learn which channels perform best for your brand, only pay for real customers, and drive massive scale with confidence.
Interested in getting started, but not sure where to begin? Reach out to our team of outcome-based marketing experts today.
Looking to create more of an omnichannel approach but worried about eating up your marketing budget amidst a potential recession? Interested in testing out new traffic sources such as contextual targeting, but unsure if it will drive qualified customers? With outcome-based marketing, the opportunities are endless in learning what works best for your brand’s customer acquisition goals. Take contextual targeting for example – this traffic channel allows brands to target only qualified customers, learn what ads, content, and messaging they engage and convert on most frequently, and scale from there. Being that contextual targeting is up to 2.5x more effective than other forms of targeting, working with an outcome-based marketing network or agency with access to high-quality contextual traffic can help brands reach customers ready to convert. Paired hand-in-hand with proprietary anti-fraud software, and hyper-targeting and budgeting technology capabilities, your brand has the potential to be an outcome-based marketing machine no matter the financial climate.
As you look to adjust your marketing strategy ahead of economic slowdown, working with a trusted performance-based team can make all the difference.
Outcome-Based Marketing: Guaranteed in Times of Uncertainty
With the growing potential for a global recession, many marketers will be forced to adapt their ad spend. But, when pressure grows and budgets begin to feel tight, the best marketers lean-in to outcome-based marketing.
If you’re interested in recession-proofing your brand’s marketing strategy, reach out to our team of outcome-based marketing experts to unlock guaranteed success today.