For many brands in this scenario, we recommend beefing up creative resources and building advanced measurement models to invest in upper-funnel campaigns that will expand reach and lower acquisition costs. But some brands aren’t ready for that yet.
Instead of skipping straight to performance branding, which combines storytelling, analytics, and direct-response optimization, brands should take a bottoms-up approach that first examines other direct-response channels to capture existing demand as efficiently as possible. Those channels include affiliate, Reddit, Pinterest, Snap for B2C, and ecommerce and LinkedIn for B2B. Other emerging platforms, like AppLovin (for ecommerce), as well as tried-and-true offline channels like direct mail, may also be powerful options for capturing demand within CPA targets.
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One note: those channels are smaller and offer less functionality than Google or Meta ads. As a result, they have fewer levers to pull to optimize performance, and they’ll reach a point of diminishing returns relatively quickly. It’s important to set up your measurement models to recognize that point, so you’re not replicating the Google/Meta scenario.
When you’re confident you’ve either maxed out efficiency on those channels or proven conclusively that they’re not effective for your business, it’s time to lay the groundwork for performance branding. In order to invest confidently in upper-funnel campaigns, you’ll need to:
Break your addiction -- and set expectations with execs. Investing in the upper funnel means incorporating different KPIs that sit farther from the revenue column, and asking for a bit more runway to show impact. The leap can be scary for people used to linear (and very flawed) attribution, but it’s healthier in the long run.
Invest in a good marketing mix model (MMM) provider. Don’t rely on UTMs, Google Analytics, attribution tools, or channel reporting as a source of truth. Aside from experimental design, which requires significant time and resources, MMM providers can model the marginal returns of each channel, which will help you allocate your budget far more effectively. Often, brands can pull budget from lower-funnel channels with minimal revenue impact, which means investing in the upper funnel is simply a matter of re-allocation.
Invest in high-impact creative. Simple UGC content and static ads can take a brand far on social channels, but it does not drive brand metrics. You need memorable, entertaining, product-centric ads to move the needle in upper-funnel channels.
Start testing. Test different placements, bid settings and channels, and closely measure the incremental gains in revenue by looking at your MMM dashboards, user surveys, and lift over baseline.
What I’ve laid out here might sound daunting -- at least, more than ad copy and bidding tweaks that might get you marginal in-platform gains. But if you’re serious about building sustainable growth, moving away from overinvestment on Google and Meta is the right first step.