Performance Based Advertising & The Funnel – Advanced

The Funnel

Agencies and advertisers like simplicity. They like to pay a fixed fee for a conversion. Either doing performance based advertising on desktop/laptop, tablet or mobile inventory; it’s all about that fixed fee (stimulated by the well know last click attribution model). Isn’t the customer journey more complex than clicking on a banner and buying a product? Of course it is.

Marketers like the word ‘touchpoint’ for a reason; there are many points a consumer touches before committing to an online or offline purchase. A touchpoint can be a TV commercial, a friend with a recommendation, an Out-Of-Home ad, an ad in print or; a display banner on a mobile device or computer. It’s that first touch that implants a desire to purchase/own a product.

Performance Based Advertising on mobile devices

Performance Based Advertising – the basics

It’s a hot topic. Mobile will be – or already is – the biggest channel for online purchases. A significant amount of research suggests that various countries have passed the tipping point of having more online purchases via mobile devices compared to desktop and tablet. While a couple of years ago researchers concluded that the mobile device is mainly used for product orientation; today, the majority of actual purchases are being performed on mobile devices. Secondarily there is the fact that apps play a huge role in today’s shopping behaviour. Brands have their own apps, online shops have their own apps and in many cases a product is simply an app. In this whitepaper we explore the status quo concerning Performance Based Advertising within the mobile channel. 

Clothes, groceries, electrical equipment, sport related products, health products, travel or finance products; it doesn’t matter what the product is, theoretically it can be bought using a mobile device. Just like almost every product can be bought online using a desktop, laptop or tablet. The purchases (or; conversions) can be stimulated by different online marketing tools. Performance Based Advertising means that a tech vendor (of a certain marketing tool) will only get paid a fixed amount for every conversion that is achieved. With this, the risk for the product owner (or; shop) is practically zero.