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09 July 2015

Facebook Points the Way to a Performance-Based Ad Future

The rise and rise of digital advertising – already a $145 billion industry worldwide, according to eMarketer – increasingly presents marketers with a conundrum: as they push more of their ad budgets into digital, it’s necessary to prove the return on their investment. To show an ad campaign’s performance, in other words. Marketers are asking themselves, and their marketing partners, What is the performance of my campaign?

In recent years, there has been a clear shift in preference towards performance-based advertising solutions, in line with the overall growth of digital advertising. According to the IAB’s 2014 Internet Advertising Revenue Report, performance-based pricing models accounted for 66% of all digital ad campaigns in the U.S. Having reached an inflection point in mid-2006 when performance-based digital ad models surpassed advertising spend on branding campaigns, companies are increasingly shifting their advertising budgets to more advanced and complex forms of digital performance-based activities (such as programmatic ad buying).

Read the full article at Ad Ops Online

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