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The Pursuit of Happiness – a guide to more effective DM

Jason Cromack (pictured) adds quintillions of data to an insightful direct marketing strategy and comes up with a happiness factor.

Happiness is a powerful force. The ascent of stockbroker Chris Gardner to become one of American’s leading and most renowned entrepreneurs has provided inspiration to many. His memoirs, entitled ‘The Pursuit of Happiness’, document the struggles of one man to juggle the obstacles of fatherhood and homelessness while launching a career in brokerage. His story, aside from providing the subject matter for a Will Smith Hollywood blockbuster, has come to symbolise the impact that a human’s surrounding can have on one’s life.JasonCromack

Whether it is the motivation to continue to strive for success or merely the deciding factor in which supermarket to visit, a person’s view of their world shapes so many choices. For marketers, the task is always to wrestle with these perceptions and use them to their advantage by ensuring that their message marries timing with relevancy. What’s more, there is no discipline where these two elements have a bigger role to play than in the world of direct marketing and, more specifically, direct mail.

For too long, direct marketing failed to really grasp this. The emphasis has been on volume and a broad scatter-gun approach to reap success, albeit with relatively small returns, and simultaneously creating a negative image of the whole practice both for marketers and the wider public. However, the explosion in consumer data that has taken place in the last couple of years promises to change all this. The rapid evolution of technology driven by consumer adoption and forward thinking brands such as Apple, means that 2.5 quintillion (a one followed by 18 zeros) bytes of data created every day and 90 per cent of the world’s total data have emerged in the last year alone.

This provides marketers with a real opportunity to develop deeper insights into human reaction and behaviour to create campaigns that tap into the emotional triggers and ensure a piece of activity resonates with them in some way. The challenge of leveraging a person’s emotional triggers with campaigns that feel personal is still a primary concern, but it is achievable. By putting data analytics at the heart of everything they do, brands are given the opportunity to elevate the relevancy of the creative and ultimately ensure that a campaign reaches the right person at the right time.

A good example of this is the direct marketing that prefaced the UK Government’s ‘Right to Buy’ scheme, which offered council house tenants the opportunity to buy their property outright. The campaign used data to identify eligible tenants and resulted in the creation of an eye-catching, house-shaped mailer. However, as with any direct marketing activity, the devil was in the detail.Happiness (WEB)

By monitoring response levels, it was possible to identify the consumers that were most likely to buy their property to increase the efficiency of the campaign. It also unearthed a surprising level of simplicity in what was previously considered a complex decision that took into account a variety of factors. The decision to buy was driven simply by the tenant’s perception of the area, which was informed from the view within a few hundred yards of their front door. If they liked the area that they lived in, then the tenant was much more likely to respond to the campaign and ultimately buy the property. Not only did this insight ensure that any direct marketing activity could be better targeted to reach those most likely to buy their property, but it began to unearth a whole host of other insights that had a huge impact on the way direct marketing could be planned for maximum efficiency.

This was a Government example, but could well be used commercially; by charting the inhabitants’ overall perception of an area, a marketer can begin to rank the responsiveness of a prospective recipient to a piece of direct marketing. For example, the nicer an area the greater the likelihood that there will be an increased sense of a community, and the more likely that a new initiative could be shared through word-of-mouth. By delving deeper into the data, a marketer can begin to chart the probability that something will be shared, reducing the number of pieces of direct marketing accordingly while still reaching the same audience, tapping into mavens and influencers in the area who will spread the word for them. What is more, this efficiency only scratches the surface of the effect that a simple and basic human understanding can have. For example, profiling different areas by the inhabitants’ perception of it can provide a profile of the area that can be overlaid with financial and demographic information to build a richer picture of the UK on a broader level.

This goes to demonstrate the more efficient planning that can be put in place based on simple insights gathered from the data at hand. Perception can be a huge hindrance to any marketer, shaping biases and constructing barriers in the consumer’s receptiveness to a marketing message. However, for the savvy marketer, it presents a huge opportunity to communicate a brand’s objectives in the most efficient way possible to the most willing audience.

Jason Cromack is CEO of the GIG at DST.

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Americas Canada In the News

Cirque du Soleil joins hands with DHL

In the photo, DHL Express CEO Ken Allen and Cirque du Soleil CMO Mario D’Amico sign the partnership agreement, with the cast of Quidam looking on.dhl-cirquedusoleil (WEB)

DHL has announced that it will support Cirque du Soleil, a major live entertainment company, as Official Logistics Partner.

DHL will be integrated into Cirque du Soleil’s supply chain activities, with its DHL Global Trade Fairs & Events team, a subsidiary of DHL Global Forwarding, Freight, supporting the event logistics of Cirque du Soleil Big Top and Arena tours worldwide.

DHL will also provide global logistics support for the corporate headquarters of Cirque du Soleil in Montreal, Canada. The partnership will see the two global brands engage in joint marketing activities for their worldwide customer bases, partners and employees.

Ken Allen, CEO, DHL Express, said: “Cirque du Soleil and DHL are a perfect fit.

“We have both grown from entrepreneurial beginnings into global brands through a commitment to conquering new frontiers and amazing and delighting our customer bases. As we pool our respective strengths through this partnership, both brands’ proven ability to innovate and deliver excellence will contribute to even more exciting customer experiences in the future.

“We look forward to replicating the breathtaking performances under the Cirque du Soleil Big Top in our own operations behind the scenes.”

Finn Taylor, senior vice-president, Touring Shows, Cirque du Soleil, said: “Cirque du Soleil is delighted to be partnering with industry leader, DHL, as our official global logistics partner.

“This is a fantastic alliance for us, marrying two beloved brands known for their commitment to excellence in their respective fields. With a global touring operation spanning over 150 locations across more than six continents, logistics is critical to the success of Cirque du Soleil.

“In announcing DHL as our worldwide Official Logistics Partner, we are delighted to have this opportunity to work with another global brand that shares our commitment to excellent quality. We look forward to integrating DHL’s services into our supply chain and to introducing the Cirque du Soleil experience to new audiences and markets together.”

The main logistics requirements of Cirque du Soleil consist of the set-up and ‘tear down’ of shows and transfers between tour venues, including the use of air, sea and land transport and customs clearance services. A single Big Top show can involve the movement of up to 80 freight containers. The Canadian-based entertainment company also has a range of standard supply chain requirements within its day-to-day business operations, including small package shipping, warehouse management and merchandise distribution.

A total audience of 15 million people is expected to attend any of the 19 Cirque du Soleil shows around the world in 2014.

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In the News UK

UK marketing pay rises 5.6% in the past year

Marketing spend at highest level for 13 years

Average marketing salaries in the UK have risen 5.6% in the past year according to specialist marketing recruiter EMR.Salary-increase-200x150

The recruiter’s 2014 Salary and Market Trend report found marketing salaries increased almost £3,000 from £50,781 in 2012/13 to £53,613 in 2013/14. However, bonuses have stayed fairly steady at £7,155 this year compared with £7,238 last year.

Marketing spend is currently at its highest level for 13 years and has seen four consecutive quarters of growth. Q3 2013 saw a 12.3% increase in spend compared with the same period last year.

Marketers themselves are even more upbeat with a 30% increase in those feeling optimistic about the economy over the coming year – from 21% in 2012/13 to more than half currently (51%).

Simon Bassett, managing director of EMR said: “An increase in overall pay and salary in particular is a major sign of confidence within the marketing industry as it represents a longer term commitment than simply raising bonuses. The sector is performing well and spending more and the huge increase in optimism is a by-product of this.”

In more good news for the marketing industry, 43% of marketers reported that the number of staff in their department had risen over the past year and 36% expect further headcount growth in the next 12 months. Forty-four per cent of marketers expect to change jobs in the next year.

Job security has risen 6% over the past year from 55%, to 61% currently.

Similarly, job satisfaction has risen from 41% to 48%.

Bassett continued: “Marketing has a major role to play in the economic recovery as companies seek to expand. Talented staff are central to this hence increased hiring and increased movement in the job market. Many marketing professionals will have stayed put during the worst of the downturn as confidence was low, but now the sector is booming again, marketers will be on the look-out for an attractive move and bigger pay rises.”

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Africa Americas Asia-Pacific Best practice Europe Legal & Compliance MENA Strategy and Management

Preparing for a new internet age

Gary McIlraith looks at how marketers can prepare for the changing nature of the internet in 2014.

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Global Insight Strategy and Management

A single customer view in a crazychannel world? Don’t be stupid!

Professor Merlin Stone discusses whether the single customer view is a serious aspiration as the number of channels explodes.

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Uncategorised

The blurry line between marketing and sales enablement

Gavin Finn (pictured) details three questions to ask when delivering sales materials.

When was the last time your sales team applauded when your marketing team delivered materials or content for them to use?

If this is not happening frequently enough (or at all) then perhaps we should consider the reasons.

I recently asked a senior director of marketing at a very successful high-tech company how he spends his time and, after a long pause, he told me he spends the majority of his time managing the process of putting materials together for the sales team. Brochures, specifications/data sheets, white papers, presentations, etc. I then asked him what, out of all of his deliverables, was the most effective and the most valued by his marketing and sales teams? His answer was simple: Anything interactive – online AND offline. We both sat in silence pondering the ramifications of these last two (perhaps incongruent) points. A visionary global vice-president of marketing for a leading telecom equipment provider said recently: “None of my sales guys ever thank me for making brochures.”

It is axiomatic that useful and effective sales enablement solutions will be used by sales teams and ineffective tools will sit on the shelf (or in the file folder on their laptops.) Where are you spending the majority of your time? What kinds of content/tools would your sales teams really use?

Here are a few things to consider when creating sales tools:Gavin_A_Finn_(WEB)

WHERE IS YOUR CUSTOMER? Your customers participate in the buying cycle in a wide variety of venues, and your tool must function well in any situation to be truly effective. Sales enablement tools need to be able to reach prospects anywhere they seek information, from individual discovery on websites and mobile devices, to face-to-face events, to intimate sales meetings, or briefing centres.

The end goal is to provide engaging informational knowledge exchanges that enhance the sales experience regardless of whether or not a representative is present.

Geographical location and local languages are also important factors to consider when developing sales enablement content. If you have globally dispersed representatives, customers and channel partners, you will want marketing content that is easy to translate. Look for marketing platforms that have modifiable text and don’t require content to be re-created for each revision or translation. This will significantly expand the reach of your investment while keeping content relevant for even the most remote sales representatives.

HOW COMPLEX IS YOUR SOLUTION? Marketers are often challenged to educate sales teams and channel partners on the value, differentiation and positioning of their offerings. When complex physical products are being sold, this task is not trivial. Many companies are turning to virtual representations of products to improve the expertise of their sales, marketing and technical teams. The ability to quickly train internationally dispersed people gives organisations a huge advantage.

For many companies, physical products (especially ones that are newly manufactured) aren’t always readily available for training and demonstrations, due to their size, cost, and limited supply. This results in many employees not being well-versed in the features, benefits and specifications of the company’s latest innovations, which is obviously detrimental in many ways. When virtual 3D products are available, users can access these products in useful and meaningful ways. Sales personnel and customers can view your products from every angle, explore options and features (open drawers, change batteries, add components, etc.), investigate internal workings and even run animations showing processes.

Now, sales will ALWAYS have access to even the most difficult to obtain products (size, fragility, limited supply) and can use these tools during meetings to succinctly deliver the information each customer needs. This allows employees in any corner of the globe to learn about and interact with any product as if it were physically in front of them – on a variety of convenient platforms, including websites, tablets, smartphones, laptops or touch screen appliances.

HOW PERSONAL ARE YOUR SALES EXPERIENCES? Because no two prospects are exactly the same, personalisation of content is what makes sales and marketing messages fully resonate. Therefore, the goal when creating sales enablement tools is to provide all prospects with the ability to view and experience content that is targeted and relevant to them, and accessible at their own pace. By creating non-linear, user-driven content, the prospect can control their own experience, exploring the content and messages in a sequence and level of detail that they feel are most appropriate to their needs.Subway Station in Munich

Cognitive research has shown that when users drive their own experience they retain significantly more information than when they are watching a presentation. Tools such as videos do the talking for you and put the sales encounter on autopilot, creating a forgettable experience and inhibiting a true conversation with your customer. Putting your customer in the driver’s seat better highlights their interests for your sales representative, enabling them to tailor the discussion to best solve the customer’s business challenges. With interactivity proven to increase product knowledge retention by 78%, it’s no wonder that companies are turning to digital engagement marketing strategies that put the customer in control.

Gavin Finn is president and CEO of Kaon Interactive. 

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Americas In the News USA

US survey: Big Data marketing budgets rise again in 2014, but hiring slows

Infogroup Targeting Solutions survey at DMA13 Conference finds companies continue to make technology investments, but focus on data analysis couldguidelines suffer without adding people

Most companies will continue spending heavily on big data marketing initiatives in 2014, but fewer companies plan to hire for data-related positions compared to a year ago, according to a Stateside study from Infogroup Targeting Solutions.

The report, based on a survey of almost 400 marketers at the USA DMA13 Annual Conference, found for the second straight year that more than 60 per cent of companies expect their big data marketing budgets to increase. But the majority of marketers do not plan on adding new employees to handle their data efforts in 2014, a reversal from a year ago when most companies said they did expect to hire for big data positions.

“The survey findings also indicate that marketers are moving from the information-gathering stage to the analytics phase of big data adoption. But a downturn in hiring could stall big data implementation, as the need for human capital is greatest during the analysis and action stages”, said David McRae, president of Infogroup Targeting Solutions.

“Big data is meaningless without manpower,” McRae said. “While it’s exciting that most companies are making bigger investments in big data, marketers should not forget that it takes people to make sense of the information. Hiring before reaching the analytics stage enables companies to become data-led and act on the data.”

Marketers seeing positive ROI

Big data early adopters will be spending the most in 2014, likely because they are already reporting a positive ROI. Two-thirds of marketers who have already made big data investments expect to see increased budgets this year, ten per cent higher than those who have not started yet.

When it comes to specific big data investments, the most popular technology in 2014 will help marketers with enhanced analytics (42 per cent). Almost three-quarters (73 per cent) of marketers say data analysis will be more of a priority this year, and a quarter plan to hire data analysts or strategists.

The ITS findings show where data-driven marketing is headed in 2014: 62 per cent of marketers expect an increase in their data-related budgets, down six per cent from last year.

Only 43 per cent of marketers plan on hiring for data-related positions, compared to 56 per cent in 2013. Among survey respondents who are hiring, 59 per cent intend to onboard data analysts or strategists.

More than half (54 per cent) of marketers have already invested in big data. Among those early adopters, 61 per cent are already seeing positive ROI.

Thirty per cent of marketers plan to invest in big data for the first time in the next two years; of the 15 per cent who plan to invest for the first time in 2014, 86 per cent expect to see positive ROI in the first or second year.

Eleven per cent of marketers have no plans to invest in big data solutions. Big data implementation is a multi-year process that requires sustained investment in technology and talent,” McRae said. “To maintain momentum, marketers need to create an intentional roadmap because big data cannot be tackled in a day.”

Infogroup Targeting Solutions surveyed 370 marketers in person on tablet devices at DMA13 in Chicago from Oct. 14-17, 2013. The full report, ‘Big Data’s Big Step: Analytics Takes Center Stage for Marketers in 2014,’ can be downloaded here. 

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In the News

‘Mobile data roamers to generate $42bn in revenues by 2018’

A new report from Juniper Research has valued operator revenues generated from mobile data roaming at $42 billion by 2018. This will represent 47% of the global mobile roaming revenue, compared to an estimated 36% in 2013.

The report notes that these revenues will be driven by increasing data usage, as operator migration towards 4G will induce consumers to take advantage of faster broadband networks, while reductions in roaming charges will spur more frequent and heavier usage.

LTE to drive roaming business

The new Mobile Roaming: Regulations, Opportunities & In-flight Strategies 2014-2018 report found that with LTE deployments increasing and set to grow exponentially in all markets around the world, it will continue to fuel the explosion of roaming data usage.

However, the report notes that in order to achieve the full potential of LTE roaming, successful business models towards end-users and between operators are needed. Roaming agreements for 4G LTE are in its initial stages and operators are currently looking to partner with tier one operators in developing the right wholesale model.

Report author Nitin Bhas added: “Operators also need to sort out the right economics to encourage more usage at a value to the end users in order to avoid revenue erosion. They need to also provide services that are both relevant and cost effective to LTE roamers.”

EU regulatory impact on roaming revenue

Meanwhile, the report found that if the proposal to end roaming charges in the EU gets the European Parliament approval, then this would significantly impact on roaming revenue levels. Under this scenario, the report forecasts that European voice, SMS and data revenues would decline by just over 20% in 2016. However, the actual volume of usage and number of active roamers will continue to rise over the forecast period.

Unsurprisingly, the proposal for such a regulation is witnessing fierce opposition from operators, including Vodafone, Orange and Telefónica.

The ‘The Rise of the Roaming Empire II’ whitepaper is available to download from the Juniper website together with further details of the full report.

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Uncategorised

Contact centre as a service: The seven most popular myths about cloud contact centres

Klaas van der Leest (pictured) dispels some myths about contact centres in the cloud.

Cloud computing is here to stay and cloud providers are quick to quote the benefits of this new phenomenon including minimal upfront expenditure, payment per month, scalability plus application management including software and platform upgrades dealt with remotely. However, many in the contact centre world see mainly the negatives and cite seven common myths as reasons not to migrate to Contact Centre as a Service (CCaaS) with a cloud-based contact centre solution. So let’s take a look at those myths so you can make a more informed decision about the benefits of CCaaS.

Myth One: Expensive legacy telephony kit has to be thrown awayIntelecom - Klaas van der Leest (WEB)

The most common misconception when it comes to CCaaS is that organisations have to rip out existing telephony kit. This is not the case and modern cloud-based contact centre services simply sit on top of existing infrastructure therefore retaining any original investment in equipment. For those without legacy switches and handsets there is a complete cloud option but the majority of Intelecom customers choose to retain their original handsets and equipment making the change to a CCaaS model as simple as turning the old system off one day and commencing with the new service on the same day using the same legacy hardware.

Myth Two: What about resilience, service levels and call quality?

The CCaaS model is independent of hardware, software and agent location. Callers never receive an engaged tone because of the huge capacity of the cloud and rogue builders cannot cut through telephone lines. Agents and administrators have the freedom to log-on from any location. All that is required is a phone line (PSTN, SIP or mobile) and an Internet connection. This is great in bad weather or a break in business continuity for any reason and in fact improves resilience and service levels.
Add to that the reality that cloud providers test again and again – in fact Gartner says: “The design and construction of a CCaaS solution is inherently more resilient than most organisations can afford in their own infrastructures.” As for call quality working with an established provider, such as Intelecom, with over 15 years experience guarantees carrier grade telephony for every call as it is not dependent on VoIP.

Myth Three: How about functionality – can flexibility be guaranteed?

One of the major advantages of CCaaS is the ability for contact centres to seamlessly grow, or contract, which means capacity to cost effectively react to demand. Because of the building block approach which means that additional functionality and agents can be added or subtracted as required, cloud-based contact centres make perfect sense for seasonal businesses. Payment per month, only for what is used, can save significant amounts in terms of operational and capital expenditure on hardware and licenses which are not fully utilised all year round. We call it: Business on your terms.

Myth Four: Loss of control and the ability to customise

The inherent flexibility of the cloud means that organisations can have increased control and customisation of their contact centre solutions. Satellite offices can manage and control their own locations, while sharing the same technology platform across the whole organisation and still benefit from centralised management. Pre-defined access rights mean that people see what they need to see while management remains in control. With one time integration in the cloud with other applications, via web services, is easy and secure, making for improved integration and business processes.

Myth Five: Costs can get out of control

The Total Cost of Ownership (TCO) argument is an easy one to dispel because customers are only charged for the resources used. There is no up-front capital expenditure or annual maintenance payments associated with on-premise equipment regardless of usage. Remember that in traditional on premise scenarios the user has to license for maximum capacity which therefore attracts higher support and maintenance fees. Under the SaaS (Software as a Service) model actual agent usage can scale up and down with business demands and the monthly costs reflect this. The CCaaS pricing model has further attractions in terms of multi-channel operations as an agent is an agent regardless of channel making it easy and cost efficient to add new channels as they emerge. It has to be worth doing a comparison year-on-year in terms of CCaaS and traditional on-premise solutions.

Myth Six: What about security?

With centralised data storage security is enhanced with CCaaS. For regulated industries such as finance payment and card details can be secured by working with a Level 1 PCI-DSS compliant cloud application specialist provider. Referring back to Gartner’s comment, cloud providers are better placed when it comes to security than many organisations themselves – outsourcing security makes sense.

Myth Seven: Social media is always an add-on

Taking advantage of CCaaS allows organisations to utilise skill-based routing in queues regardless of which channel is used. To the cloud the channel is irrelevant, with queries coming into the same place. Social media capability is not an add-on when working with a CCaaS application specialist, it only becomes an extra if the supplier is not the solution developer. Connect from Intelecom, for example, integrates to many social media channels and has a specially designed interface advising the agent of the source of the enquiry. Social media is built in, rather than bolted on.

Think again when it comes to those seven most popular myths about cloud contact centres, as the benefits far outweigh any perceived negatives.

Klaas van der Leest is UK managing director, Intelecom.

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Data Driven Channels In the News UK

Affiliate marketing and lead generation adspend hits £1bn

UK businesses spent £1 billion on affiliate marketing and lead generation activities in 2013, 15% more (on a like-for-like basis) than in 2012, according to the second annual Online Performance Marketing study conducted by PwC for the Internet Advertising Bureau UK (IAB).

This generated £14 billion in sales via price comparison, voucher, cashback, loyalty and product review websites – the most common forms of Online Performance Marketing (OPM). This represents a return of £14 for every £1 invested by advertisers.

Across OPM sites – such as Comparethemarket, TripAdvisor, Vouchercodes, Nectar and Quidco – advertisers don’t pay publishers to show the ad, they only pay if the ad causes someone to complete a defined action, such as making a purchase (affiliate marketing) or submitting contact details (lead generation).

In 2013, UK consumers made 150 million purchases via affiliate websites – three for every British adult – totalling £13 billion. £1 billion in sales was generated from Britons submitting contact forms. This means OPM now drives about 10% of all UK e-commerce retail sales.

Dan Bunyan, manager at PwC, said: “OPM generated around four billion clicks in 2013, the equivalent of ten million per day or 120 per second, about 5% of which resulted in a transaction. This high conversion rate and the high return on investment explains the significant increase in advertisers (to 4,000) and publishers (to 12,000) now using OPM.

“It isn’t just the big publishers, or ‘super-affiliates’, who generate revenue through OPM. It’s opened up a new and growing industry among the ‘long tail’ where Individuals and small publishers with specialist knowledge of a particular area can produce websites and then automatically generate advertising revenue.”

OPM ushering in a “new era of savvy and careful consumerism”

OPM taps into consumers’ desire to find the best deals. More than half (52%) of British adults online report having visited a price comparison website in the last six months. Nine in ten say they cash in vouchers or redeem points, half of whom do so every month. One in eight has redeemed a voucher or deal using an app on their mobile phone.

UKOM-approved comScore data shows that in November 2013 alone, 39% of the UK internet population (18.7 million people) visited a price comparison site; 35% (16.6 million) visited a voucher/coupon site while 21% (9.9 million) visited a loyalty or cashback site.

Tim Elkington, director of Research & Strategy at the Internet Advertising Bureau, said: “Characterised by deals, incentives and product reviews, OPM has ushered in a new era of savvy and careful consumerism.

“However, the industry is growing quickly because it’s an ‘everyone wins’ situation.”

He explained: “Consumers can save money in a variety of convenient ways and get access to content online free of charge. Advertisers get new customers – nearly six in ten people become repeat customers of a company they only discovered through a deal or incentive site – and, at a return of 14:1, it’s extremely cost-effective. It also generates extra revenue for the publishers in the middle, large or small, via referral fees.”

Finance and retail advertisers account for more than half of OPM spend

The finance sector, driven by insurance and credit card advertisers’ use of price comparison sites, is the biggest spender – accounting for 35% of OPM expenditure in 2013 – followed by retail (21%). The top five are completed by travel & leisure (17%), telecoms & media (9%) and gaming (7%).

Commenting on the success of OPM, Olivier Claude, marketing controller Affiliate & Email at BSkyB, said: “Between 2010 and 2012, affiliate channel sales volumes grew by 33% and customer quality has improved. At the same time, affiliate share of online volumes have grown steadily. Should Performance Marketing maintain positive volume growth and positive ROI, we should expect an increased investment in the channel.”