Lead generation generates around £16.5 billion in consumer spend, a new study has indicated.
Research from the Internet Advertising Bureau (IAB) found that advertisers spent £1.1 billion on online performance marketing (OPM) in 2014, marking a 14 per cent rise when compared to 2013.
British businesses spent £1.1 billion on online performance marketing (OPM) activities, representing an eight per cent increase from 2013 and equating to a return of £15 for every £1 invested.
Throughout OPM websites, advertisers just pay a publisher for an ad if it leads to someone completing an action, ranging from purchases to submissions of contact details.
In 2014, consumers made 125 million purchases through affiliate websites, reaching £15.4 billion. As well as this, £1.1 billion in sales was generated from the 30 million contact forms put in by customers.
Dan Bunyan, Senior Manager at PwC, said: “The fact that consumer spend is growing at nearly twice the rate of advertiser spend, indicates the OPM market is maturing and brands are becoming more efficient in how they drive consumer spending.
“OPM has grown to a near-£17 billion industry due to the fact that all parties continue to benefit. Advertisers get new customers extremely cost-effectively, consumers save money and get access to free online content, whilst the publisher in the middle gets revenue through referral fees.”
In particular, OPM spend on mobile and tablets rose by 72 per cent, while the share of OPM spend allocated to the devices jumped from 11 per cent to 17 per cent.
The study found that the finance sector spends the most money on OPM, thanks to the use of price comparison sites, while retail (21 per cent) and travel and leisure (19 per cent) are also popular.
Posted by Jon Aspinell on 29th April 2015
Product and Solutions Consultant
Product and Solutions Consultant - Birmingham (and home based) - up to £45,000 plus bonus and benefits (beaconing tec...
We have been engaged by a well-established charity in their search for an experienced HR Administrator/Recruitment Co...
IT Support Engineer
A growing medium-sized business is looking for a proactive IT Support Engineer to join its small IT team based in the...
Graduate Marketing Assistant
A rare opportunity has arisen in a unique global professional marketing business with offices in Twickenham, West Lon...
Digital Marketing Manager (B2C)
The Ashdown Group has been engaged by an international retailer, well-established, with an excellent reputation, to a...
ASP.Net Developer (MVC, C#, eCommerce)
An excellent new opportunity has arisen within a successful technology business, who are looking for a .Net Developer...
Is faster better?
‘Hire slow, fire fast’ - it’s an old business adage that continues to hold traction today. But in today’s hiring envi...
Unemployment falls to 4.3 per cent
Unemployment in the UK fell to 4.3 per cent between February to April 2017 and May to July 2017, the lowest since 197...
Keeping candidates engaged during the recruitment process
The relationship between a hiring team and a candidate can be a highly fruitful one, if it has been cultivated proper...
UK companies to publish pay ratios between CEOs and workers
Companies publicly listed in the UK are going to be expected to make public how much their chief executives are paid,...
Are internal candidates a safer bet than external candidates?
When you need to recruit for a vacancy in your firm, you’re faced with two choices: hiring externally or promoting in...
Does it pay to recruit with diversity in mind?
Is diversity a significant aspect of your recruitment strategy? If not, you may be hindering your company’s future pr...