Connect with us

SOCIAL

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

Published

on

facebook shares new research into the comparative performance of brand vs direct response campaigns

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.”

Advertisement

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.

Advertisement

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

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

SOCIAL

Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

Published

on

By

Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

Advertisement

This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Catering to specific audience boosts your business, says accountant turned coach

Published

on

Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

Advertisement



“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Instagram Tests Live-Stream Games to Enhance Engagement

Published

on

Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

Advertisement



Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS