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Why Ad Tech AI Is The New Face of Performance Marketing

Performance marketing has given us the ability to measure everything—more precisely—from brand reach to the conversion performance of a single ad.

It has helped us optimize our campaigns to achieve the best cost per acquisition and a genuinely impressive ROI. 

But what exactly is performance marketing?

 

Performance Marketing And Its Transformation

According to the Interactive Advertising Bureau (IAB) performance marketing used to be defined by its objective. It simply needed to:

“…drive a specific action, and advertisers only paid when that action, such as an acquisition or sale, was completed... [Performance marketing] included search advertising, pay per acquisition, email marketing and more.”

And it sharply contrasted with brand advertising, whose sole objective was to build awareness and payment was typically based on impressions (CPMs) or sponsorship.

Yet recently, the definition of performance marketing has changed.

Now, a more accurate description might include marketing campaigns that:

  • Are intended to drive consumer action, not just to raise awareness
  • Measure the cause and effect relationship between the advertising and specific consumer actions
  • Allow a buyer to optimize their campaign in real or near-real time based on campaign and ad data
  • Revolves around a performance action that is being measured, optimized and potentially monetized to increase revenue

 

Other experts in the space have yet more to say on the subject. 

James Maley, Senior International Marketing Manager at Hilton Hotels says, “Performance marketers measure spend vs. return; they quantify how successful activity is against objectives originally set.”

That might mean revenue vs. a cost metric or a range of goals like cost per sign up, lead, acquisition, view, engagement, sale or download across all channels to measure ROI, he adds. 

Digital Marketing Manager, Riman Verma from First Utility partly agrees.

“Performance marketing is driving performance and rewarding on completed consumer action versus a pre-determined KPI set, including, but not limited to, pay-for-performance business models,” she says. 

The pretext here is that clear goals for any marketing activity should be aligned, while there are techniques that only require payment when they are met.

Nick Cristal from UK media agency Maxus adds: “...successful performance marketing depends on the ability to reach the right audiences, at the right time with the right message, which in turn delivers the desired actions for our clients.”

Others claim that programmatic will force all digital marketing to become “performance,” leading to the blending of the foundations of performance with brand marketing, making it more measurable, accountable and trackable.

 

The Future of Performance Marketing: Next Generation AI?

why_ad_tech_ai_is_the_new_face_of_performance-01

AdTech has undoubtedly played a key role in shaping the term most recently. And this trend has come about because—let’s face it—the two are a match made in heaven.

Performance, tracking data, and metrics just can’t be performed as well by humans as they can be by machines. And AI can empower you with the most useful and extensive data, plus the best conversions and campaign results possible by learning and detecting the audiences for any ad or campaign.

In fact, without next generation AI, how are you planning to manage the potential thousand data points that need to be generated from each and every one of your campaigns?

Scripted CEO, Ryan Buckley, puts it this way: “In a modern marketing operation, the sheer complexity and variety of signals is way outside the grasp of a human mind…”

“In the next five to 10 years, there will be a machine learning company whose platform sits on top of Google Analytics and derives valuable strategic insight from the underlying data, including directional guidance on which channels to tune, which to divest and which to accelerate.”

He’s right. 

But is Real AI and machine learning (ML) company whose platform sits on top of Facebook and Google AdWords already exists.

Adext’s audience management as a service (AMaaS) focuses on what really matters—not impressions, CPC, and branding (we’re sure you’re the best at branding, because humans crush machines when it comes to creativity), but leads, prospects, and sales. At the end of the day, those are the conversions that matter the most for a business. They are directly correlated with gross profit and business growth.

Having Adext AI means automating budget and audience management on multiple platforms. It manages budgets across 20 different demographics per ad and performs 480 daily budget adjustments per ad to find the audience that provides you with the highest sustained conversion rate and the lowest CPA.

That’s how it has increased ad conversion performance by an average of 83% in just a week!.

Would you like a conversion boost like that for your campaigns? Just connect Adext AI to your Google and Facebooks accounts today (which takes about 5 minutes) and we will do the rest for you.

Check out this guide, which explains the simple steps to follow to get started with Adext AI.

And don’t worry, you’ll still be in full control of the creative and strategic side of your campaigns.

Jessie Maguire
ABOUT THE AUTHOR | Jessie Maguire
With over 14 years as a freelancer now specializing in the AI, HealthTech and AdTech spaces, Jessie Maguire loves to dig up and write about data that intelligent audiences can use to stay ahead of the curve.
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