Performance based advertising will flourish this year
ADOTAS — Advertisers will be focusing heavily on performance-based types of advertising during 2009 as the recession continues to dig deeper, a new report shows.
More than three quarters of advertisers are planning to increase their spending on CPA formats this year, according to business-to-business research published by Econsultancy and Convera. Two thirds of respondents said that the “need to find information quickly” is the main advantage of vertical search engines from the perspective of business users. More digital marketers this year are also more likely than a year ago to be using widgets that provide customised internet marketing and business information.
“CPM is already suffering as advertisers turn their attention to performance-based formats to ensure that they can get clearly measurable returns,” said Linus Gregoriadis, Econsultancy’s Research Director. “Publishers are facing extremely challenging times and, more than ever, need to think about how they can adapt to trends such as the growing appeal of performance-based advertising and the increased use of widgets.”
The Vertical Search (B2B) Report 2009, produced by digital research publisher Econsultancy and sponsored by vertical search specialist Convera, examines the benefits of industry-specific search engines for users, publishers and advertisers.
Other research findings included:
- Software-as-a-Service is being widely used by companies both for on-site search and for a range of other functions. More than half of survey respondents report that their businesses are using SaaS for email (77%), web hosting (74%), sales and marketing (62%), CMS (59%), file and assets storage (57%), site search (57%) and ad serving (51%).
- Overall, 91% of publishers surveyed make use of search log analytics, and 28% refer to this data frequently. Only a third of publishers (36%) say they derive strategic value from this data.
The research is based on a survey of more than 500 media and internet marketing professionals, including 152 publishers and 118 advertisers. The survey was carried out online at the end of 2008.
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Reader Comments.
As a company, we have seen a definitive increase in merchants requesting proposals for affiliate program management. In the last 8 years, we have seen more and more companies embrace the model. We look forward to an awesome 2009!
As a CPA network, not only have we seen an interest from advertisers looking to move from a CPM model to a more measurable CPA model, we are also see a shift in publishers open to a CPA model where they can get a higher effective CPM, while regular CPM rates continue to erode.
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