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April 24, 2018 | by MediaAlpha

MediaAlpha Releases New Study from Leading Independent Research Firm on The State of Performance Marketing

Research shows that performance marketing yields highest returns when bought programmatically instead of through costly, opaque ad networks

LOS ANGELES, Apr. 24, 2018 – MediaAlpha, a pioneer in programmatic platforms for native and metasearch media, today announced the findings of Performance Marketing Actually Performs[1], a study performed by leading industry research firm. MediaAlpha commissioned Forrester Consulting to evaluate the state of performance marketing and how it is being utilized and purchased by marketers.

The research indicates that performance marketing enables marketers to gain deeper insights into how their campaigns directly impact business outcomes, and that marketing firms that use it are outperforming those that don’t:

  • 71 percent of marketers that use performance marketing report their marketing programs as being either extremely successful or successful in achieving desired results, compared to 47 percent of those that don’t.
  • 41 percent of firms that actively use performance marketing said it was either extremely easy or easy to link their performance spend to business benefits, and 59 percent said that link to business value was either critical or important to their business.

For marketing firms that have taken a data-driven, programmatic approach to performance marketing instead of relying on an ad network, the experience has exceeded expectations. More than half of these firms reported experiencing a better performance against marketing key performance indicators (KPIs), the ability to deliver more relevant experiences for customers and an increase in return on investment (ROI.)

The research also shows a knowledge gap in the industry, with many marketers not fully understanding how to unleash performance marketing’s full potential through programmatic:

  • 30 percent of firms said they weren’t aware that buying performance marketing programmatically was possible.
  • 27 percent of firms said they don’t understand the benefits of buying performance marketing programmatically.
  • 21 percent of firms said they don’t know enough about how performance marketing channels work to pursue a programmatic approach.

The study points out that marketers moved to a programmatic approach for buying display over the past few years and recommends they do the same with performance marketing, as network-driven buying lacks the insights, transparency and control that platform-driven buying can deliver:

  • 64 percent of firms said they want to ensure they have full transparency into the sources they would be working with when buying performance marketing.
  • 63 percent of firms said it was either very important or critical that they be able to monitor and optimize campaigns themselves, rather than relying on an ad network to do it for them.

To view the study in its entirety, please click here.

About MediaAlpha:
MediaAlpha innovates where programmatic technologies and native and metasearch media intersect, bringing unparalleled transparency and efficiency to performance marketers. Its technology platforms power over 50 million high-value transactions annually, representing more than $400 million in media spend across the insurance, travel, personal finance, education and home service verticals. For more information, visit www.mediaalpha.com.

[1] Performance Marketing Actually Performs, a March 2018 commissioned study conducted by Forrester Consulting on behalf of MediaAlpha.

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