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
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