If you're running a business, you've probably heard about "growth marketing" and "performance marketing."
You might be thinking, "Hey, they're both in marketing, so how different can they really be, right?"
Well, both types of marketing aim to help your business do well, but they go about it in different ways. The names might sound similar, but they do have some important distinctions.
In this article, we'll break down what each strategy is all about, including some examples. By the end, you'll have a better idea of whether your company should lean towards a growth marketing or performance marketing approach.
The goal here is to help you figure out what makes the most sense for your business without getting bogged down in confusing jargon.
So, let’s get started!
What Do Growth Marketing and Performance Marketing Have in Common?
Although different, growth marketing and performance marketing do have quite a bit in common when it comes to helping businesses expand and increase their revenue.
They both use processes that can be repeated and scaled up, and they share some similar features. One significant similarity is their reliance on data – both use it to create a loop of continuous feedback, monitor progress, and make important decisions.
Another shared aspect is the emphasis on setting goals. Knowing your audience and establishing key performance indicators (KPIs) that focus on growth and revenue are crucial components of both strategies.
Nevertheless, even with these shared traits, it's important to highlight that the two marketing approaches aren't carbon copies – they do have some differences, which we’re going to highlight in our next point.
Growth Marketing vs Performance Marketing: How Do They Differ?
Performance marketing is like ordering food when you're hungry. It's a focused strategy where businesses pay for online advertising only when a specific action is completed, like clicking a link or signing up. It includes things like pay-per-click ads, sponsored social media posts, and affiliate marketing.
The key here is that businesses only shell out money when someone takes a predefined action. It's like a quick, convenient meal—you get results fast, but as soon as you stop paying for the ads, the impact on your business growth stops too.
Now, imagine growth marketing as a carefully planned and nurtured garden. It's a more holistic and sustainable approach. Growth marketers don't stick to a limited menu of tactics; instead, they choose from a wide range of methods to build awareness and turn strangers into loyal customers.
Unlike performance marketing, growth marketing looks at the big picture. It's not just about the number of clicks or impressions. Growth marketers focus on key performance indicators (KPIs) that are tied to overall revenue goals. Did a campaign contribute to long-term growth or help lower the costs of getting new customers?
In essence, growth marketing is about creating a garden that keeps producing results over time, giving your business steady and profitable growth. It's not just a quick meal; it's a sustainable feast that keeps your brand thriving.
What Are Some Examples Of Growth Marketing vs Performance Marketing?
Let's dive into some examples to highlight the difference between growth marketing and performance marketing:
Performance Marketing Examples
Pay-Per-Click (PPC) Ads:
Scenario: You run a Google Ads campaign, paying only when someone clicks on your ad.
Objective: Immediate visibility and website traffic.
Social Media Ads:
Scenario: You invest in sponsored posts on Facebook, paying for each click or impression.
Objective: Quick engagement and interaction with your target audience.
Scenario: You partner with affiliates who earn a commission for every sale they generate through their unique referral link.
Objective: Directly tying marketing spending to actual sales.
Growth Marketing Examples
Scenario: You consistently create and share valuable blog posts, videos, and guides to attract and educate your audience.
Objective: Building brand authority and establishing long-term relationships.
Email Marketing Campaigns:
Scenario: You send targeted and personalized emails to nurture leads and guide them through the customer journey.
Objective: Fostering customer loyalty and retention.
Scenario: You optimize your website content to rank higher on search engines, organically attracting more visitors.
Objective: Long-term visibility and sustainable growth.
Combining Both Strategies
Google Ads with Conversion-Oriented Landing Pages:
Scenario: You use PPC ads to drive traffic but focus on optimizing landing pages for conversions.
Objective: Blending performance for quick wins with growth elements for lasting impact.
Influencer Marketing Campaigns:
Scenario: Partnering with influencers to promote your product but integrating it with a broader content strategy.
Objective: Leveraging the performance boost from influencers while building long-term brand presence.
PRO TIP: Remember, the key is finding a balanced approach that aligns with your business goals and the stage of your overall marketing strategy.
Growing Your Business with Both Growth and Performance Marketing
If you want your business to thrive, using a mix of growth and performance marketing is like having the best of both worlds. Here's why:
Performance Marketing for Quick Wins
Performance marketing gets you fast results. Yes, it might cost a bit more to bring in customers, but it's like a shortcut to testing your marketing and sales strategies.
You get a bunch of website traffic and leads, which helps you figure out what messages work, what offers are appealing, and how to fine-tune your sales process. It's like a speedy way to validate and improve your business model.
Building Long-Term Success with Growth Marketing
Now, growth marketing is the crucial element for long-term success. While performance marketing gives you a quick boost, growth marketing sets up a solid foundation for sustainable growth. Think of it as planting seeds that will keep producing results over time.
As your business matures, you can gradually shift more towards growth marketing, which lowers costs and supports organic growth.
SO, WHERE DO YOU FIND THIS PARTNER?
Well, aren’t we glad you asked! We at DigiCom are obsessive data-driven marketers pulling from multi-disciplinary strategies to unlock scale. We buy media across all platforms and placements and provide creative solutions alongside content creation, and conversion rate optimizations. We pride ourselves on your successes and will stop at nothing to help you grow.