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Performance Marketing Poised For Dramatic Growth

Sep 30, 2010
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Last week in Santa Barbara, CJU attendees breathed a communal, but skeptical, sigh of relief as the media reported an end to the Great Recession. Thankfully, the Affiliate Marketing channel has fared better than most other industries due to its focus on pay-for-performance pricing models.

Kerri Pollard, General Manager of Commission Junction, presented some of the following positive statistics about the current growth of the Affiliate Marketing / Performance Marketing industry and the projected growth opportunities ahead.

Advertising Growth Rates:

  • Total advertising spend is projected to grow by 10 percent in the next 5 years.
  • Online ad spending has tripled in the last 10 years and is expected to grow by 60 percent in the next 5 years (from $22.7B in 2009 to $36.3B by 2014
  • US Affiliate Marketing Spend is projected to grow by 110 percent in the next 5 years (From $1.9B in 2009 to $4B by 2014.

Media Time Spent vs Ad Spend:

The following graph really hit it home for me. We all know that media consumption behaviors have changed, but the advertising spend has been slow to adapt.

Based on these numbers by Morgan Stanley, a clear shift from print towards Internet marketing is happening.  This will accelerate as CMOs, CFOs and other corporate executives fully understand the pay-for-performance Internet marketing model.  The red outline rectangle above equates to approximately $50B in advertising spend opportunity.

eCommerce Sales vs Total Retail Sales

According to the US Department of Commerce, e-commerce sales still only account for a small sliver of the total retail sales channel. This is creating huge market opportunities for performance marketers when these sales move online and as new technologies are created to enable companies to track and pay performance marketers for driving these online sales.

This is all great news for the performance marketing industry. It will be great to watch the innovation and changes to our industry as more of these ad dollars flow online, as the C-Level executives fully embrace the power of pay-for-performance marketing, and as the investment capital community fully grasps this enormous opportunity.

About Adam Viener

Adam Viener is the Chairman & Founder of imwave, inc, a leading performance search engine marketing agency. Imwave focuses primarily on building and launching effective pay-per-click search engine keyword marketing campaigns for companies paying commissions on sales and leads generated. In both 2009, 2010 & 2011 Imwave was recognized as one of the fastest growing privately held companies by Inc. Magazine. Imwave recently announced they had served over 5 Billion ads for their clients!

Adam, a serial internet entrepreneur, founded one of the first commercial internet service providers (ISPs) in 1993. He has a deep understanding of internet technologies and profitable internet marketing tactics. Adam currently sits on the publisher advisory boards for Commission Junction and the Google Affiliate Network.

Social Media:

Twitter: adamviener
Filed under: Affiliate Marketing + eCommerce + Events + Internet Marketing + Online Marketing + Recession
  • http://www.TheSearchEnginePros.com Santa Barbara Marketing

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    Hi, 

    Its very informative article guys. 

    Thanks