Jane Turner - Marketing Director

Online Performance Marketing – new study demonstrates its value

posted by Jane Turner - Marketing Director27 Jan 2014 • 0 comments

Last week the IAB and PwC launched a new study that clearly demonstrates the benefits of performance marketing for advertisers: for every £1 spent on performance marketing an advertiser can expect to generate £14 in sales.  In an environment where every advertising penny needs to count, this is proof indeed that sites offering price comparisons, cashback, loyalty, voucher codes and product reviews have a vital role to play in the digital marketing mix because of the clear value they deliver for advertisers.

‘The value of Online Performance Marketing’ was conducted by PwC for the IAB.   It shows that UK advertisers spent £1billion on performance marketing in 2013 – 15% more than the previous year.

The study is full of big numbers: 150 million purchases made via affiliate websites – that’s three for every British adult; £13 billion spent on those purchases.  This means that performance marketing now drives around 10% of all UK e-commerce retail sales.  And if you want more big numbers, performance marketing generated over four billion clicks in 2013, that’s an average of around 10 million a day, or 120 clicks per second.  So, at any time of the day or night people are engaged with performance marketing channels, using them to help them make a purchase decision.

Last year Tradedoubler published its own study into the value of performance marketing, focusing on how consumers use affiliate sites to help them make purchases.  Our research corroborated the findings of the OPM study: 79% of connected consumers use price comparison, loyalty, coupon, cashback or deal sites when they are making purchases; even greater numbers (89%) use them when researching a purchase.  Performance channels are now used for inspiration on which brands and products to buy, as well as for finding a deal and making a purchase. 

The clear implication for brands is that without a presence on these sites you risk being locked out of consumers’ decision-making processes.  And with a ROI of £14 in sales for every £1 spent – why wouldn’t you give it a try?

OPM press release: 

http://www.iabuk.net/about/press/archive/affiliate-marketing-lead-generation-ad-spend-hits-1bn

Tradedoubler Whitepaper:

http://hst.tradedoubler.com/file/69966/ariane/Tradedoubler_Research2013_UK_Whitepaper1.pdf

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