Today, advertisers spend almost 72 percent of their budget on digital marketing channels. Companies are, therefore, unsurprisingly increasing their marketing budgets, as it’s cost-effective as well as known for generating healthy ROIs. The reason for this cost-effectiveness is that marketers only pay publishers or ad networks for the results they achieve, such as website clicks and/or conversions. Performance marketing is a digital marketing strategy that drives results. And if you want to get involved, you should invest in a performance marketing tracking platform.
These platforms help advertisers or affiliates to have total control of their campaigns, enabling them to monitor key performance indicators (KPIs) such as bounce rates, conversions, clicks, leads, etc. Irrespective of their size, advertising firms should use performance marketing tracking platforms if they want to know how their campaigns are doing.
When it comes to starting out in performance marketing, however, many firms struggle to decide whether they should build a platform or a third party. If this is you, then read on.
Managed performance marketing tracking platforms
Companies and marketers looking to grow their businesses are best suited to using managed performance marketing platforms. The market is enormous, so doing research will pay dividends as there are so many performance marketing tracking platforms on the market.
These platforms offer unique features and tools that affiliates, advertisers, and/or marketers can use to check and analyze their marketing campaigns. They can also provide valuable insights that can help advertisers spend wisely and make better decisions. Some of these platforms carry out tasks automatically too.
There are many reasons why picking a performance marketing platform from a third-party vendor is beneficial.
Here are some of the key benefits:
As an advertiser, performance marketing tracking software will be cost-effective, as many platforms will offer you their services at affordable rates via subscriptions. These tools help marketers stay on top of everything, and since the subscription cost is fixed, you know exactly how much you have to pay for them.
No one size fits everyone. Most service providers will appreciate this, and their sales team will be happy to help you choose a plan that best fits your needs. In the future, if your plans change, many platforms will also allow you to switch to a better plan with more extensive features.
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It usually has good customer support
One of the best things about managed performance marketing platforms is that they provide their clients with the best technical customer support. So when you have a problem, you can get help right away.
There’s no risk
When you pick a managed performance marketing tracking platform, there is no risk involved whatsoever as they will already be providing your business protection against ad fraud.
Migration is easy
The best performance marketing tracking platforms, make switching from one platform to another a quick, straightforward process that can be done in a day. So, if you like another platform and plan on moving your data, the migration doesn’t have to be stressful comparatively, if you’re thinking of developing your own platform, things aren’t as easy. In that case, creating another platform with better features in 24 hours is virtually impossible.
There are no Installation or maintenance costs
Since you are not developing the performance marketing software yourself, you don’t have to worry about these additional costs. Once you pay the subscription amount, you are ready to use the platform immediately.
Here are some disadvantages of using a managed performance marketing platform:
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There are recurring expenses
Once you subscribe, you will still incur expenses every month or year, depending on the type of plan you select. Just because you’ve signed up with a fixed rate doesn’t mean there won’t be other expenses. It all depends on the platforms themselves and various other factors.
When you sign up for a managed performance marketing tracking platform, you will be asked to agree with the platform’s terms and conditions based on its belief system and objectives. You will only be able to use their platform if you consent.
In-house performance marketing tracking platforms
In-house or on-premise software refers to the development of a platform by the company as per its needs. This way, they customize the application as per their requirements. While this might sound easy, there are, in fact, a lot of uncertainties involved. For instance, the company in question will probably have to invest a lot of time, money, labor, infrastructure, technology, and effort to make it work.
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Here are some of the benefits that come along when companies build their own in-house platforms:
You can customize it
When you develop your own platform, you can customize the features or tools to meet your requirements. Companies willing to spend a significant amount on this project and hire the best people will be able to build robust platforms that fit their needs.
You’ll have total control over your team
When your own team is responsible for building your tracking platform, you’ll have total control over it. What’s more, communicating with your team will be easier than working with contractors, and the likelihood of timely completion will therefore be greater.
Here are some of the cons of creating an in-house performance marketing tracking platform:
You’ll have to invest a lot
Companies that want to develop an in-house performance marketing platform will probably have to spend a lot to achieve it. Compared to a subscription for the same service, developing your own will cost significantly more. It may take decades to recoup this expenditure.
It’s hard to find real talent
To build a good platform, you need talented people. Finding the right individuals is a time-consuming process.
Building a performance marketing tracking platform is one thing, but maintaining it is another. It requires you to spend a lot of money to ensure the platform runs smoothly. It is a big responsibility, and you must invest time and effort to make it work.
While developing a platform looks easy, there will inevitably be additional costs. You have to be ready to spend money when something unexpected happens.
What to consider when deciding which type of platform to use
Here are some of the questions you need to ask yourself before taking the next step:
- Do you have enough time to develop your own platform?
- Is it worth spending money on developing a performance marketing tracking platform? Or will it be easier to use a subscription platform like Swaarm that already offers all the features that will make your work easier?
- Are you ready to spend a lot of money developing your own platform, or do you want to cut costs by choosing an affordable alternative?
- Is hunting for the talent that can bring your project to life worth the effort?
- What is the rough estimation of the total expenditure you might incur for developing and maintaining this platform?
Performance marketing tracking platforms can help companies have total control of their marketing campaigns and work towards getting the best results. In-house performance marketing platforms have their own advantages.
But is building a platform really worth your money? Finding a managed performance marketing platform is relatively easy too and you might use software comparison sites like Capterra or Software Advice to help you decide. This article discusses the pros and cons of both options so you can make an informed decision.