ITCAN, a leading e-commerce technology and digital marketing company focused on e-commerce performance marketing, has revealed a remarkable increase in the demand for performance marketing services from 2019 to the first six months of 2020 (H1 2020)--demonstrating overall growth of around 160 per cent during the period. The vibrant growth reflects the increased awareness of brands on the benefits and advantages of performance marketing, which has now become a vital component to e-commerce growth.
Moreover, an increase of 180 per cent was seen in mono (single) e-commerce brands requesting performance marketing services from 2019 to H1 2020, while 140 per cent growth was witnessed in marketplace e-commerce over the same period.
According to ITCAN's senior officials, the company has marked high demand for this service as they have become widely known as one of the best providers of performance marketing related services in the region. ln fact, ITCAN's e-commerce revenue for the same group of clients reflects a 29 per cent increase for the first six months of 2019 and 2020. ITCAN's client base during the first half of 2020 grew by 77.4 per cent as compared to the same period in the previous year. Broken down further in numbers, the e-commerce revenue for the first half of 2019 totaled to around AED 68, 863,916 worth of performance marketing services. Meanwhile, the first six months of 2020 saw the generation of around AED 88, 805, 212 worth of revenue for the same group of clients from 2019 and around AED 122, 202,164 coming from both old and new clients during the first half of 2020.
Mansour Al Thani, CEO and co-founder of ITCAN, explained that performance marketing are online marketing and advertising programs wherein advertisers and marketing companies are paid when a specific action is completed, such as a sale, lead or a click. He noted that performance marketing should be leveraged by all companies as it allows to tap into a massive number of affiliates or media buyers that specialize in all traffic sources.
“Every company needs more leads, sales, and customers. Performance marketing opens unlimited opportunities due to its practical and measurable prospects. They offer key features that help companies identify traffic sources; what creatives are performing well; and what is the average cost per acquisition--important factors that can assist the companies in utilizing the data to drive more traffic and sales to their services or products and aggressively scale,” Al Thani added.
The ITCAN CEO and co-founder further pointed out that performance marketing allows companies to leverage the knowledge of affiliates, which all have their unique skill sets, creative angles, problem solving tactics, and specialties with traffic sources and conversion rate optimization. He revealed that affiliates are not salaried employees nor are they on retainers, but only get paid if they drive a conversion, and only profit if their conversion cost is lower than the conversion payout, which means that they will go above and beyond to try to lower their costs, in turn increase their profit margins.
“We believe that performance marketing services will continue to boom, which is evident in e-commerce brands showing huge turnovers in 2020. Performance marketing, combined with the latest technologies, allows publishers the advantage of being able to track and measure the action generated by campaigns while also providing attribution to the correct source. This allows for brands to reduce risk, increase return on investment (ROI), lower cost per acquisition and maintain tight margins across the board--enabling them to accurately identify the efforts that are performing well and which ones are not. If there is one lesson to be learned, it is to understand the best times of the year to run various promotions and campaigns. In line with this, we should know by now the strong sales activity generated by Black Friday. Brands wanting to make the most of their performance marketing should take advantage of these events and run wide reaching marketing campaigns during this time to ensure maximum sales,” concluded Al Thani.