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IAB study reveals the value of the UK Online Performance Market

This morning we went along to the highly anticipated launch of the first UK Online Performance Marketing industry spend report at the IAB offices in Covent Garden. The industry has long awaited such a study and testament to that fact is the financial contribution given from 23 companies within the market place to make it happen.

The aim of the research, carried out by PWC and commissioned by the IAB, was to accurately represent the size and value of the Online Performance Marketing sector (namely affiliate marketing and lead generation) to encompass all revenue generated through the channel. It revealed some impressive top-level statistics and after more scrutiny some compelling insights into the marketplace.

Headline figures summarised by the IAB revealed that in 2012:

> 3,000 – 4,000 advertisers spent £814 million across 10,000 publisher websites
> Resulting in 100 million transactions and 70 million leads generated
> Ultimately generating £9 billion in sales (That’s the equivalent of advertisers earning £11 for every £1 spent!)

And what’s greater news is that the study shows strong evidence of industry growth, with online performance marketing growing by 57% (at an average of 12% p.a.) over the past 4 years. This means that the market now accounts for 7-9% of all UK digital marketing spend.

Major sectors who invested in the channel were revealed as finance, retail, telco & media and travel & leisure. Spend was also spread across a variety of publisher businesses, most prominently cashback, coupon and rebate, loyalty & reward, comparison sites & directories and content & blogs. The study revealed that typical implementation of performance marketing varies by sector and value of the item in question e.g. finance invests heavily in price comparison publishers.

Having our roots in the channel, we’re delighted to see that the news of the industry has already spread far-and-wide and has been referred to as digital marketing’s “hidden economy” and “best-kept secret”.

With predictions from parties such as OPM suppliers estimating their revenue to grow by 25% in 2013 – a combination of market share gain as well as market growth – and advertisers estimating they will spend 5-10% more on OPM in 2013, the future’s bright!

More information and the full study can be downloaded on the IAB site.

Sophie Parry-Billings

Sophie Parry-Billings

Sophie is responsible for affilinet’s marketing strategy in the UK and for raising brand awareness through events, PR and other marketing activities.
Sophie Parry-Billings

About the Author

Sophie is responsible for affilinet’s marketing strategy in the UK and for raising brand awareness through events, PR and other marketing activities.

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