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Performance Marketing Association Releases Study of US Performance Marketing Spending

Posted by Miriam Tremelling on Aug 7, 2019 8:57:00 AM
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The Performance Marketing Association (PMA) has released its first-ever industry-wide study of performance marketing spending in the United States. The study gathered data from Partnerize and seven other leading affiliate/partnership networks and marketing platforms to assess the overall size of the US performance marketing spending.

The study represents a massive achievement, spanning two years of hard work and dedication by PMA leadership, specifically Executive Director Tricia Meyer and Board of Directors President Rachel Honoway. “Tricia and Rachel deserve a standing ovation for ensuring this important performance marketing spending project came to fruition," said Jim Nichols, CMO of Partnerize. “From spearheading such an amazing collaboration, to working through roadblocks and managing the research process, Tricia and Rachel have delivered something truly valuable for our industry.” 

Conducted by PricewaterhouseCoopers (PwC), in conjunction with the PMA, the research found the performance marketing channel’s adoption has grown dramatically in part because of its measurability, trackability, attribution, and compelling return on investment (ROI.) According to the PMA report, performance marketing spending in the United States in 2018 was over $6 billion (the exact figure is available in the report.)
 
Performance marketing spending as measured in this report powers a wide variety of marketing tactics engaged in with the help and participation of partners like affiliates and influencers. PwC determined the overall value of the performance marketing space, which comprises more than 200,000 businesses and individuals, by collecting anonymized data from Partnerize and seven other major networks and platforms, along with publicly available data. The data aggregated show record performance marketing spending.
 
The report shows that performance marketing spending delivers a very attractive return on ad spend (ROAS) compared to other digital marketing channels. Mobile matters more than ever as consumer shift online shopping behaviors and spend more time online. And content affiliates and bloggers lead the way when it comes to garnering performance marketing spending.
 
Other key findings include:
 
•  The highest ad spend by affiliate type was with Content publishers and and Bloggers at 39%
•  ROAS average of 12:1 
•  Retail accounted for 50% of total spend by sector
 
Both the sales return and other strong metrics for this industry are attracting more dollars and advertisers at a fast clip. The PMA report also identifies several trends including influencers, incrementality, and mobile performance marketing advertising. Investment for these sectors is clearly on the rise as partner marketing automation and other key category developments take hold across the industry. 
 
"Compiling these results required an unprecedented level of cooperation across the industry,“ said Rachel Honoway, PMA Board of Directors President. “With a fair amount of trust and a common goal, our members came together to produce the one thing that this industry has lacked for decades: a concretely stated value."
 
Partnerize is a leader in partnership automation. The AI-powered Partnerize Partner Automation Platform delivers the data-driven intelligence and industry-leading management tools that are essential for unlocking unprecedented ROI from this fast-growing sales channel. The world’s leading companies, including 63 top retailers, 11 international airlines, 8 of the largest telecoms, and more than 200 other global brands rely on Partnerize to drive and manage more than $6B in partner sales and $500M in partner payments every year.

The full report is available here: https://thepma.org/2018-performance-marketing-study/

To join the PMA go to https://thepma.org/join/

 

Topics: company news, research

About Partnerize

Partnerize helps the world's leading brands build powerful business partnerships that drive extraordinary business growth. The Partnerize Partner Management Platform (PMP) is an end-to-end, SaaS-based solution for forming, managing, analyzing, and predicting the future results of partner marketing programs using artificial intelligence. Hundreds of the world’s largest brands leverage our real-time technology to Partnerize their businesses. In fact, the Partnerize PMP drives and manages more than $6B in partner programs and financial exchanges across 214 countries and territories worldwide. 

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