The State Of Performance Marketing - Ascend2
THE STATE OFPERFORMANCEMARKETINGSTRATEGIES, TACTICS & TRENDSResearch Series Conducted in Partnership with Leading Providersof Marketing Technology and Digital Marketing Agency Services.
2Table of Contents4.The State of Performance Marketing9.Most Effective Channels5.The Importance of Performance10. Budget Trends6.Primary Objectives11. Most Effective Use of Resources7.Strategic Success12. Attributes in an Agency8.Greatest Challenges13. Ascend2 Research Partner ProgramsThe State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
3MethodologyAscend2 benchmarks theperformance of marketingstrategies, tactics and thetechnology that drives themwith a standardized onlinequestionnaire and a proprietary3-Minute Survey format.This survey was fieldedto a panel of marketingprofessionals and marketingresearch subscribers.Survey RespondentsPrimary Marketing ChannelB2B42%B2C33%B2B and B2C equally25%Number of EmployeesMore than 50027%50 to 50022%Fewer than 5051%Primary role in companyOwner / Partner / C-Level42%Vice President / Director / Manager36%Non-Management Professional22%
4The State of Performance MarketingMarketers strive to create a frictionlessjourney that leads individuals to complete atransaction in the form of a purchase, click,or other desired outcome. As this processevolves, performance marketing presents anopportunity to optimize methods such as paidsearch, social, and advertising.This Survey Summary Report, titled TheState of Performance Marketing, representsthe opinions of all the market segmentsresponding to the survey. Specific marketsegments from the survey are reported onseparately and exclusively by our participatingResearch Partners.But how are marketers executing theirperformance-based strategies?This research has been produced for your use.Put it to work in your own marketing strategy.Clip the charts and write about them in yourblog or post them on social media. Pleaseshare this research credited as published.To help answer this question, Ascend2 andour Research Partners fielded the The State ofPerformance Marketing Survey. We thank the274 marketers who responded to this surveyduring the week of September 14, 2020.e!Click herSUBSCRIBE TO OUR RESEARCH
5Importance of Performance MarketingPerformance marketing is fast becoming critical to the success of an overall paid strategy for anoverwhelming majority of marketers. 45% of marketers surveyed report that the importance ofperformance marketing is increasing significantly and another 49% would label this increase asmoderate. A mere 2% of marketers report that the importance of performance-based initiatives isdecreasing significantly as it pertains to strategic success.How is the IMPORTANCE of performance marketing changing as it pertains tothe success of a paid asingincreasing significantly increasing moderately decreasing moderately ratelysignificantlyThe State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
6Primary ObjectivesHalf (50%) of marketers are using a performance marketing strategy to increase Return onInvestment (ROI). Other primary objectives include audience-centric goals such as optimizingaudience targeting and improving audience reach for 44% and 42% of marketers, respectively.What are the PRIMARY OBJECTIVES of a performance marketing strategy?Increasing ROI50%Improving audience targeting44%Increasing audience reach42%Making data-driven decisions39%Maximizing budget27%Improving measurability26%Improving manageability17%Increasing tactic/program flexibility13%Improving transparency12%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
7Strategic SuccessAre marketers seeing success from their performance-based initiatives? The vast majority of thosesurveyed report yes. Over half (54%) of marketers report experiencing best-in-class success fromtheir performance marketing strategy. Another 44% say their strategy is somewhat successful atachieving primary objectives.Which best describes the SUCCESS of a performance marketing strategy atachieving objectives?Unsuccessful2%Somewhatsuccessful44%Very successful(best-in-class)54%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
8Greatest ChallengesA performance-based approach provides many benefits for a paid strategy, but marketers alsoface challenges when executing. Creating a comprehensive strategy presents a challenge forhalf (48%) of marketers surveyed. Allocating appropriate budget (45%) as well as integratingand managing disparate data (37%) are also top barriers to strategic success.What are the GREATEST CHALLENGES to the success of aperformance marketing strategy?Creating a comprehensive strategy48%Budget allocation45%Data management/silos37%Integration with customer journey36%Inadequate technology32%Multi-touch attribution31%Incremental sales22%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
9Most Effective ChannelsSocial media channels are reportedly most effective for executing performance-basedprograms according to over two-thirds (69%) of marketers surveyed. Search engine marketingand e-commerce marketplace advertising are also considered most effective by 49% and 37%of marketing professionals, respectively.What are the MOST EFFECTIVE CHANNELS for performance marketing campaigns?Social media marketing69%Search engine marketing49%E-commerce marketplace advertising37%Partnerships/sponsorships34%Display advertising27%Affiliate marketing27%Native advertising14%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
10Budget TrendsOrganizations are investing more in performance marketing in the year ahead. A 60% majority ofmarketers say their dedicated performance budgets will be increasing over the next 12 months,with nearly one-fifth (18%) of marketers reporting that increase will be over 20%. Only 11% ofthose surveyed say their performance marketing budgets will decrease.How is DEDICATED BUDGET CHANGING for performance marketing initiativesin the year ahead?42%29%18%8%3%Increasing byIncreasing byIncreasing by greater Increasing by up tomore than 20%up to 20%than 20%20%Budget isStaying the samenot changingDecreasing byDecreasing byDecreasing by up to Decreasing by greaterup to 20%more than 20%20%than 20%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
11Most Effective Use of ResourcesEight out of ten marketers (80%) surveyed outsource at least a portion of their performancemarketing initiatives. 77% believe the most effective way to execute a performance marketingstrategy is through a combination of in-house and outsourced resources. Of those marketingprofessionals surveyed, 20% report keeping all performance-based initiatives in-house.Which best describes the most effective RESOURCES used to execute aperformance marketing strategy?Outsourcedresources only3%In-houseresources only20%Combination of in-houseand outsourced resources77%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
12Attributes in an AgencyWith a total of 80% of marketers outsourcing performance marketing to some extent, what arethe most desirable attributes when working with an agency? Responsiveness and multi-channelexpertise top the list according to 46% of marketers. An agency's ability to innovate is alsoimportant to 45% of marketing professionals surveyed.What are the MOST DESIRABLE ATTRIBUTES for a performance marketingagency to possess?Responsiveness46%Multi-channel nagement/privacy awareness35%Integrated execution34%Brand safety18%The State of Performance Marketing SurveyConducted by Ascend2 and Research PartnersPublished October, 2020
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14MARKETING POWERHOUSES USE ASCEND2 RESEARCHPUT THIS CONTENT TO GOOD USE!This Survey Summary Report is part of a series conducted in partnership with ourparticipating Research Partners.You may adapt, copy, distribute and transmit this work. However, you must attribute thework as produced by Ascend2 and its Research Partners, but not in any way that suggeststhat they endorse you or your use of the work.When you share this content, please provide a link back to ascend2.com
The State of Performance Marketing Survey Conducted by Ascend2 and Research Partners Published October, 2020 Most Effective Channels Social media channels are reportedly most effective for executing performance-based programs according to over two-thirds (69%) of marketers surveyed. Search engine marketing
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