Connect with us

SOCIAL

Facebook Shares New Research into the Comparative Performance of Brand vs Direct Response Campaigns

Published

on

Should you invest more of your marketing budget into brand-building or direct response, in order to drive sales results?

Both elements are important, but due to immediate pressures, it’s often direct response that gets more focus. Because we need to sell now, right? We need conversions in order to meet our KPIs and demonstrate ROI to decision-makers.

Yet, at the same time, the benefits of building brand can be equally, if not more significant, over time. It just depends on how long a time scale you’re able to measure.

To provide some more insight on this, Facebook recently partnered with Analytic Partners and GroupM to analyze more than 500 Facebook brand and DR campaigns run by 21 businesses over a three-year period. The research took into account the varying approaches, with a view to determining which actually drives more value for a business.

As explained by Facebook:

“What is the proper balance of lower funnel and upper-funnel marketing activities on Facebook? Is it possible for brands to maximize the ‘easy wins’ now (through lower funnel messaging) while simultaneously setting themselves up for further growth tomorrow (through upper funnel messaging)? These are questions that all marketers face, and they become even complex when facing real-world challenges such as pressing growth and limited budgets.”

So which is the better approach, according to the research? Well, really, it depends.

Facebook’s report essentially breaks down the comparison into three charts.

In this first graph, we can see that direct response campaigns generated more conversions, which makes sense given the focus on such. 

Facebook sales research

But Facebook notes that this isn’t the only metric to consider – you also need to factor in the cost per impression, with DR approaches generally being more expensive due to more specific audience targeting, which tends to have higher CPM.

Facebook sales research

As you can see here, the cost per impression for brand-building (upper funnel) campaigns is far lower, because your targeting will be much more broad as you look to connect with a wider audience.

Correcting for this, once you factor in the cost per conversion, brand-building actually ended up being a more effective approach in some verticals.

Facebook sales research

“On a per-spend basis, the ROI performance of upper-funnel marketing is more comparable because of the less expensive cost structure. In fact, upper-funnel marketing is a consistently better performing strategy for driving short-term sales in specific industries like ecommerce and Retail.”

That’s an interesting consideration, especially given the rise of eCommerce over the past year. Brand-building, and establishing connection with a wider audience, can actually drive similar, if not better, sales results – but you need to go the extra mile of comparing your costs and conversions over time to see that reflected in your data.

The research really highlights the need for taking a tiered approach to your advertising, and investing accordingly.

As a basic outline, the structure of each of your ad campaigns should be split into three elements:

  • Highlighting product utility and brand to generate initial interest (broad audience targeting)
  • Highlighting more specific product benefits in targeting people who’ve expressed initial interest (those who’ve responded to ads or posts, or have visited your website)
  • Retargeting those who’ve expressed interest in specific products by underlining specific benefits (those who’ve visited product pages or gone through to the check-out but haven’t converted)

Segmentation is key, and Facebook’s research here underlines the need for investment in each element in order to maximize results. 

But there’s no definitive answer – Facebook’s study doesn’t specifically say that investing in brand-building will generate better results for all businesses over DR campaigns. It does show, however, that there are clear benefits to each, and by experimenting and tracking your results, you’ll be able to demonstrate relevant value for your efforts over time.

You can read Facebook’s full “The Effectiveness of Brand Messaging in Driving Sales Incrementality” report here.

Socialmediatoday.com

SOCIAL

Podcast Marketing Statistics for Businesses [Infographic]

Published

on

Podcast Marketing Statistics for Businesses [Infographic]

Podcasts have become an increasingly popular content format, providing on-demand, topical material covering virtually any subject that you can think of.

Indeed, according to estimates, over 130 million people will listen to podcasts monthly in the US this year, which could also provide significant opportunities for marketers to tap into this captive audience, and reach them with relevant ads and offers.

If you’re considering getting into podcasting or podcast advertising, this will help. The team from Spiralytics have put together a collection of podcast consumption stats and notes, which could help guide your thinking around the format.

Check out the full infographic below.

Source link

Continue Reading

SOCIAL

17 Content Options for Each Stage of the Sales Journey [Infographic]

Published

on

17 Content Options for Each Stage of the Sales Journey [Infographic]

Looking to formulate a better content strategy for 2023?

This will help – the team from Orbit Media has put together a listing of 17 content formats, and where they fit within the sales funnel which could provide some inspiration for your planning.

There are some good pointers here, with specific approaches that you can take at each stage of the journey.

Check out the full listing below – while you can read more on the Orbit Media website.

Source link

Continue Reading

SOCIAL

Meta Soars by Most in Decade, Adding $100 Billion in Value

Published

on

Meta Soars by Most in Decade, Adding $100 Billion in Value

Correction: February 2, 2023 This article has been revised to reflect the following correction: An earlier version of this article misstated how much Meta expected to spend on its deal with the virtual reality start-up Within. It is $400 million, not $400 billion. Meta’s stock surged on Thursday …

Source link

Continue Reading

Trending

en_USEnglish