Dubai, UAE, November 3, 2020: 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.
