Performance Marketing Trends
Provide additional statistics on the growth of performance based marketing.
Since growth-specific statistics on performance based marketing were limited, due to the relatively limited time frame available for study, the research team included additional statistics on performance based marketing to provide a complete picture of the field.
- Performance marketing was a part of 16% of ecommerce sales in 2017.
- According to a survey of over 2,300 people, "62% of brand and enterprise marketing budget was moving toward performance marketing." Some companies are even dedicating 100% of their marketing budget to performance marketing.
- In 2018, US spend on performance based marketing was estimated to be $6.2 billion.
- The retail sector makes up over half of the total spend on performance marketing, followed by the financial, travel and entertainment sectors.
- By affiliate type, content and bloggers accounted for 39% of performance based ad spend, followed by cashback/loyalty programs, coupons, voucher and rebate programs, and sub network and comparison website spend.
- Affiliate marketing was worth $5.94 billion in 2018 and is expected to grow to $6.8 billion by 2020.
- Performance marketing includes affiliate marketing. Total spend on affiliate marketing in the US is projected to grow by 10% over the next few years.
- Affiliate marketing "contribut[es] to about 15% of the total revenue made through digital marketing efforts."
- 81% of brands use affiliate marketing.
- Global affiliate marketing spend is growing by an astonishing 27% CAGR.
Proposed next steps:
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We recommend further research to identify 3-5 trends in performance based marketing. For each trend, we will describe the trend, identify what is driving the trend, and provide one example of a company illustrating the trend. Trends will focus on the US and Canada.
We also recommend further research to identify 2-3 case studies of US/Canadian brands shifting towards performance based marketing. For each brand we would include why and how they made the shift, the results produced (as available), and management commentary (quotes) or perspectives on the same.
Finally, we recommend further research to identify 3-5 of the main drivers for US/Canadian brands to switch to performance based marketing.