New Higher Education Data Reports That the OPM Market Is in Steep Decline
The newest quarterly report from Validated Insights shows a 56 percent drop in online program management (OPM) initiations, a rise in cancellations, and a 97 percent drop in OPM investment since 2021.
CHICAGO - October 14, 2024 – The online program management (OPM) market is experiencing a significant downturn, with new partnerships plummeting and contract terminations soaring, according to the first new quarterly report from Validated Insights, a leading higher education marketing firm.
The report reveals a dramatic 56.1 % drop in new OPM partnerships in the first half of 2024 compared to the same period last year. This marks the lowest level of activity since 2020, with only 29 new agreements formed.
Adding to the industry's challenges, the report highlights a surge in contract terminations. In 2023, a record-breaking 147 OPM relationships ended through either termination or the contract running out, nearly matching the combined total for the previous three years.
"Universities are increasingly seeking greater control over their admissions and operational processes, diminishing the appeal of traditional OPM partnerships," said Yelena Shapiro, Founder and CEO of Validated Insights.
The report also points to a steep decline in investment within the OPM sector. Funding for OPM providers and related companies has plummeted by 97% since its peak in the first half of 2021.
Regulatory pressures further contribute to the market's challenges. The Department of Education's ongoing scrutiny and Minnesota's recent legislative action to ban revenue-sharing OPM partnerships among state institutions signal a less favorable environment for OPM providers.
"The warning signs for traditional OPM businesses have intensified," said Brady Colby, Head of Market Research at Validated Insights. Colby previously founded 32EDU, a higher education market research firm acquired by Validated Insights in 2023. "The data clearly illustrates less interest for traditional OPM partnerships. We’re closely watching how most OPMs pivot away from older revenue sharing models to more enablement-focused services."
Validated Insights will release report updates on the OPM market quarterly, along with other timely and relevant information about higher education and the higher education market. For the latest higher ed market research and insights, follow Higher Ed News by VI on LinkedIn
About Validated Insights
Validated Insights is an agile marketing agency specializing in helping higher education institutions achieve and exceed their goals. With a comprehensive suite of services, including digital marketing, paid search, paid social, and web strategy, Validated Insights delivers data-driven strategies and measurable results. The agency's agile testing approach enables short- and long-term growth through better creative, strategy, media execution and continuous brand building. Validated Insights is the only agency in the higher education space to offer a performance guarantee in KPIs in the first 60 days - and continuous growth beyond that.
For the latest higher ed market research and insights, follow Higher Ed News by VI on LinkedIn or learn more at ValidatedInsights.com
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Media Contact:
Jennifer Harrison for Validated Insights
+1 916.716.0636
Jennifer@pandopublicrelations.com
OPM Market Insights - September 2024
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