It’s no secret that Performance Marketing on Instagram, Snapchat and other social networks is evolving and will deliver high-quality engagement for brands. People are increasingly turning to social media to learn about new products, with 76 percent of shoppers purchasing a product they discovered in a social media post. Brands are partnering with affiliates and influencers to generate leads, acquire new customers and increase ROI. Authenticity is key when it comes to selecting influencers and partners to promote your brand. People want to trust companies or influencers before they consider their content or purchasing their products. Performance Marketing via shoppable media will see significant growth in terms of the value it can bring to brands.

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Budgets Shift to Performance Marketing

Companies are shifting their budgets to invest more in Performance Marketing and less in brand marketing as they look to tie their spending to results. In a recent study conducted by TUNE in partnership with Acceleration Partners, the majority of survey respondents (70 percent) observed 50 percent or more of brand enterprise marketing technology budgets are moving to Performance Marketing. Marketers cited more flexibility and decreased risks as some of the benefits of switching. The performance model makes it easy for marketers to scale and increase reach quickly and the pay-for-performance framework inherent to affiliate marketing ensures that companies are paying partners based on results. This approach will be leveraged more prominently, especially by larger brands.

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Rise of Click and Buy on Mobile

Mobile is becoming the default for online shopping. eMarketer reports that mobile commerce sales in the U.S. will amount to 39.6 percent of total retail e-commerce sales (reaching $208.1 billion) and by 2021 mobile will represent the bulk of e-commerce spending. Apple Pay, Samsung Pay and Google Wallet all make impulse buying on mobile easier, helping it to be a more effective acquisition channel. At the same time, marketers are getting up to speed on the factors that drive mobile purchases and making it easier for people to transact on mobile devices. Brands will increasingly leverage mobile wallets to engage and incite loyalty with their customers.

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