Understanding media performance in digital marketing is like navigating a maze that constantly changes. The emergence of platforms like TikTok has revolutionized how brands connect with their audience, adding layers of complexity and opportunity. However, with regulatory changes such as GDPR and iOS 14.5 updates, eCommerce brands are now facing a growing challenge: gaining clear visibility into the performance of their media mix channels. 

Top of Funnel Marketing 

Top-of-funnel marketing is about more than just creating buzz; it’s about laying a sustainable foundation for growth. Imagine it as the first chapter of an engaging novel, where the story begins, intrigue is created, and the relationship with the reader—or in this case, the customer—starts to form.  

Historically, due to the difficulty in tracking and measuring the impact of these top-of-funnel activities, brands have gravitated towards bottom-of-funnel advertising, where results are more tangible, like direct sales and conversions. However, this approach often overlooks a critical aspect of customer acquisition and brand building.  

According to a Fospha report, brands that consistently invest in top-of-funnel activities for a minimum of 10 months are likely to see reduced customer acquisition costs and a more robust Return on Ad Spend (ROAS). Specifically, the report reveals that brands prioritizing long-term brand awareness strategies can improve their ROAS by 42% and decrease acquisition costs by 35%, in comparison to brands that concentrate exclusively on conversion-focused activities. 

The Challenges of Current Measurement Practices 

The digital advertising landscape has evolved significantly over the past five years, growing more complex and demanding advanced measurement techniques.  

Traditional pixel- and cookie-based methods, which have been the mainstay of most brands, are losing their effectiveness due to regulatory changes like GDPR, CCPA, and iOS 14.5, which prioritise consumer privacy over technological efficacy. This has led to a significant reduction in visibility, especially in the early stages of the customer journey. Consequently, marketing attribution models that do not account for top-of-funnel activities may overestimate the effectiveness of lower-funnel activities. 

Fospha x TikTok 

On Monday 8 Jan 2024, TikTok introduced Fospha as one of the measurement partners. This partnership represents a significant development in the intricate world of digital marketing, highlighting the importance of not solely relying on bottom-of-funnel metrics for brands aiming to achieve sustainable growth and broad market reach. 

Fospha’s solution empowers brands to measure their paid media spend across platforms like TikTok in a data-driven way that aligns with profitability. This means that brands can now gain insights into the impact of their top-of-funnel activities, optimize their strategies accordingly, and scale their efforts without sacrificing their bottom line. 

Case Study 

Let’s take a closer look at The Essence Vault, a fragrance brand that faced the common dilemma of digital expansion. By embracing TikTok’s dynamic platform and partnering with Fospha, they saw a 20% increase in revenue and a 7% improvement in ROAS, illustrating the power of a data-driven, top-of-funnel approach. 

Conclusion 

TikTok has exploded in popularity, emerging as a significant alternative ad channel. The platform has shown strong returns, outperforming other growing platforms like YouTube. Top-of-funnel marketing is more than just an initial handshake with potential customers; it’s an indispensable part of a brand’s growth strategy in today’s complex advertising ecosystem. With strategic tools and partnerships like Fospha and TikTok, brands can confidently navigate this landscape, ensuring that every stage of the marketing funnel is optimised for success. As we look towards the future of digital advertising, it’s clear that understanding and leveraging top-of-funnel marketing is not just a strategy, but a necessity for sustainable growth and success. 

For further information on this partnership, visit Fospha’s blog and TikTok for Business Blog. 

In the ever-evolving landscape of eCommerce, staying ahead requires constant adaptation and strategic insights. The Fospha State of eCommerce Report for Q1 2024 brings valuable data to the forefront, guiding marketers, advertisers, business owners, and agencies in the eCommerce industry on where to channel their efforts for maximum return.  

The report reveals a significant underinvestment in paid social channels, with advertisers reaching only 59% of their potential, suggesting an opportunity to nearly double spend for profitable returns.  

Here are some key takeaways from the report: 

Meta and TikTok emerge as leaders in paid social success, with Meta boasting the highest relative Return On Ad Spend (ROAS). Notably, TikTok stands out for new customer acquisition, outpacing other channels in driving new conversions.  
Snapchat’s major update has catapulted it as a growth channel worth watching, with a remarkable 504% increase in ROAS year-over-year.  
The report highlights a widespread issue in the industry: the underrepresentation of impressions-led channels by Google Analytics and ad platforms’ own attribution models. This discrepancy emphasizes the need for standardized measurement methods to accurately report performance.  

Now is the time to reassess your investment in paid social, explore the potential of emerging channels like Snapchat, and adopt reliable measurement methods to navigate the complex digital marketing landscape effectively. 

For a deep dive into these insights and to leverage them for your digital strategy, download the full Fospha State of eCommerce Report Q1 2024. Embrace the data-driven insights to refine your approach, optimize spend across platforms, and drive your eCommerce brand towards profitable growth.  

Snapchat driving spend growth at higher efficiency

Nutrimuscle is a fast-growing sports supplement brand that started using Fospha in June 2023. Their goal was to grow by increasing conversions and effectively allocating spend, but like many businesses, one of the primary challenges they faced was the inability to track key metrics (i.e. Cost of Acquiring Customers) and lack of transparency into campaign performance.

Nutrimuscle wanted to understand where to allocate spend, and which channels would be most effective for increasing reach and conversions. Last click and ad platform measurement wasn’t enough- this is where they turned to Fospha.

In today’s fast-paced digital landscape, scaling a brand effectively requires more than just an innovative product or service. For D2C and e-commerce marketers, understanding the intricacies of growth strategies across different stages of business development is crucial.  

A recent analysis of 71 brands offers valuable insights into the optimal strategies for startups, scaleups, mature brands, and majority offline businesses. Here’s what we learned. 

Startup Stage: Building the Foundation 

Key Strategy: Startups focus on impressions-driven channels like Paid Social to establish their audience base. This approach is essential for gaining visibility and creating a strong initial footprint in the market. 

Case Study: Pooch & Mutt exemplified this strategy by leveraging Paid Social to achieve significant year-on-year revenue gains while also improving acquisition costs. This foundational step is crucial for setting the stage for future growth and stability. 

Scaleup Stage: Accelerating Conversion 

Key Strategy: For scaleups, having already established an audience, the focus shifts to conversion activities. Increasing spend in impressions-led media helps continue generating demand while maintaining a balance with acquisition costs. 

Case Study: The Essence Vault successfully applied this approach, scaling their Meta presence while minimizing cost increases. This stage emphasizes the importance of efficient spending to maximize conversion rates and sustain growth momentum. 

Mature Stage: Expanding Horizons 

Key Strategy: Mature brands invest in higher funnel activities to avoid market saturation and explore international expansion opportunities. This strategic pivot ensures sustained growth and market diversification. 

Case Study: Represent scaled their efforts on TikTok, enhancing growth and improving Meta efficiency. By expanding their presence in the US, they exemplified how mature brands can navigate saturation and seek new markets for continued success. 

Majority Offline Brands: Embracing Digital Channels 

Key Strategy: Majority offline brands primarily invest in click-based channels like Performance Max. However, the analysis reveals significant opportunities in Paid Social, suggesting a balanced approach for optimal results.