Performance marketing on a budget

In the current economic climate, every penny counts for online retailers, especially when it comes to ad campaigns. Performance marketing, with its focus on measurable results and pay-for-performance model, is a natural fit for eCommerce brands looking to maximise ROI on a tight budget, but how can you make the most of your limited resources? Here’s how to run effective performance marketing campaigns without overspending.

Start with clear goals

Before spending a single pound, make sure to clearly define what success looks like for your campaigns. Are you aiming to increase sales, generate leads, drive website traffic, or all of the above? Outlining goals will help you allocate your budget effectively and measure success, particularly if you utilise the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to set realistic objectives. Focusing on one or two key goals is also essential to avoid spreading your budget too thin, as by narrowing your focus, you can ensure that everything you invest contributes directly to achieving your desired outcomes.

Leverage low-cost channels

Not all performance marketing channels require a hefty investment, and even some of the most impactful options such as social media ads, paid search, and affiliate marketing can be extremely cost-effective if properly managed. For example, social platforms such as Facebook, Instagram, and TikTok offer highly targeted advertising at relatively low costs, making them ideal for budget-conscious brands, and Google Ads - with its pay-per-click (PPC) model - allows you to target users actively searching for products like yours.

As you only pay affiliates when they directly drive sales for your business, affiliate marketing is also a strong choice, however again, expert setup and ongoing maintenance of your programs can make all the difference.

Focus on high-impact tactics

When budgets are tight, be sure to prioritise tactics that deliver the biggest bang for your buck. Retargeting is a powerful strategy to re-engage users who’ve already shown interest in your products, as they’re much more likely to convert. Email marketing, when personalised and data-driven, can also nurture leads and drive repeat purchases, and A/B testing is another cost-effective tactic that allows you to experiment with different ad creatives, headlines, and CTAs to identify what works best without wasting spend.

Optimise your landing pages

If you’re able to easily create and customise CMS content across your online store, then a high-converting landing page can significantly improve your ROI without requiring any additional spend at all. Use clear, compelling headlines and CTAs to capture attention and drive action, and keep any enquiry forms short and simple to reduce friction and improve the overall user experience. Testing different layouts and designs can also help you find the most effective version, ensuring your landing pages maximise conversions with little to no cost.

Track and adjust in real time

One of the biggest advantages of performance marketing is the ability to track results in real time. Use analytics tools to monitor your campaigns and make adjustments as needed. Focus on key metrics like CTR (click-through rate), CPA (cost per acquisition), and ROAS (return on ad spend) to gauge performance, and always pause underperforming campaigns and reallocate budget to high-performing ones to ensure your resources are used efficiently.

Partner up with performance pros

If you’re new to performance marketing or lack the resources to manage campaigns in-house, consider partnering with an experienced eCommerce marketing agency. A good agency can help you develop a cost-effective strategy tailored to your goals, access advanced tools and expertise without a hefty upfront investment, and will work with you to scale your campaigns as your budget grows.

Looking to boost sales on a budget with performance marketing? Dive into our latest free guide, Profitability through performance: A marketer’s playbook, for expert insights and actionable tips to craft a winning strategy.