The release today of a major report on the growth of the online performance marketing (OPM) industry in the United Kingdom represents a seminal moment for this young industry. The facts and figures it provides are evidence enough that performance marketing is here to stay; that it is a mature, growing online marketing channel that provides significant value to advertisers and publishers.
As Chris Johnson of A4U details in an excellent analysis of the IAB / PwC OPM study, the affiliate marketing industry in the U.K. has been valued (alongside lead generation) as a £9 billion ($1.43 billion) revenue generating industry.
Key Highlights (courtesy of A4U)
There are c. 3,000-4,000 advertisers and c. 10,000 publishers actively engaged in Online Performance Marketing in the U.K. (in this instance — Affiliate & Lead Generation).
Advertisers expected to spend (through commissions, management fees, bonuses and other marketing spend) £814 million on Online Performance Marketing in 2012, generating c. £9 billion of sales for advertisers.
This spend was achieved through at least c.100 million transactions and an additional c. 70 million leads generated.
This is equivalent for c. 7-9% of U.K. digital marketing spend, and drives c. 5-6% of retail e-commerce in the U.K.
The largest end-sectors include Finance, Retail, Telecoms & Media, Travel... Read more