This morning we went along to the IAB offices to hear the results of the 2016 Online Performance Marketing (OPM) study. The research carried out by PwC and commission by the IAB, highlights the ongoing and growing success of both affiliate marketing and lead generation activity in the UK and indicates a promising growth for this performance based channel.
Headline figures summarised by the IAB revealed that in 2016:
- 4,900 advertisers spent £1.578 billion across 12,700 publishers
- Delivering £5.6 billion clicks, converting to 171 million transactions (124 million of these transactions were through the affiliate channel)
- This generated £19.4 billion in sales, which is the equivalent of advertisers earning £12.30 for every £1 spent!
And what’s greater news is that the study shows strong evidence of industry growth in 2016, with online performance marketing growing by 12% on a like-for-like basis (compared to a like-for-like growth of 9.3% in 2015). With the market now accounting for 8-10% of all UK digital marketing spend and 1% of UK GDP.
In terms of sectors, the 2016 results revealed that finance, retail and travel are key sectors, all increasing marginally from 2015 to 2016. Finance was the largest sector, driving 32% of revenue, with 88% of this revenue driven through price comparison sites. Travel and Leisure was noted as the second largest sector, driving 18% of revenue.
This year’s study also revealed the increasing significance of Mobile with share of mobile specific revenue as a percentage of total advertiser expenditure increasing by 23% like-for-like.
Having our roots in the affiliate channel, we’re delighted to see such a positive growth story. Rick Leake, Affiliate Strategy Director at affilinet commented on the study
“Once again the IAB UK’s ad spend report contained good news across the board for the digital advertising industry, but for Online Performance Marketing (OPM) the report not only highlighted the continuing growth of the sector (12% YoY in advertiser spend), but it shows again something that advertisers should surely be taking note of. For every £1 of the £1.6 billion spent in OPM there was a Return On Investment (ROI) of £12.80 which equates to a total sales value of £19.4 billion.
OPM and affiliate in particular is in rude health and with continuing advancements in the industry I see this growth only continuing.”
More information and the full study can be downloaded on the IAB site.